NRST - the "RS" stands for "RETAIL SALES"? This wouldn't turn into a "transaction" tax (any money which changes hands for any reason is taxed)? What percentage NRST do YOU think is most likely (ballpark figure)?
I base my preference for a flat tax on the very simple, (and therefore) very effective proposal espoused by candidate Forbes - got one of his campaign handouts, and it looked fine - none of the tripe the Armey proposal was in the plan I saw, and I am surprised (and disappointed) to see Forbes name on your posted data. RATS!
I would suggest you actually do a bit more research on what Forbes proposed, whenever he was asked for the legislative details of the proposal he pushed in his campaign he pointed to Armey's plan as his main blueprint.
For a good overview of what the Flat Tax does to business taxes, including Forbes version read:
Flat Tax as Seen by a Tax Preparer
by Vern Hoven
in fact when challenged on what his proposal was in that area, he stated essentially that businesses could figure the old way or under the flat tax way and choose whichever gave them the lower tax payment. Problem there, that is a automatic doubling of tax computation to ascertain which is the lower.
The problem of all income taxes lay in defining what is taxable income and what is not. Therein lay the burden of accounting, planning and litigation necessary to establishing the amounts to enter on a mundane form whatever its size. The Forbes & Armey Flat taxes do not reduce those rules by any appreciable amount, nor does either get rid of the IRS, who would be as busy as ever.
Sound-bytes always sound good! The devil is always in the implementation details, not the campaign soundbytes. Forbe's soundbytes would never get past the first challenge for revenue-neutality.
NRST - the "RS" stands for "RETAIL SALES"? This wouldn't turn into a "transaction" tax (any money which changes hands for any reason is taxed)?
No, the express rule in H.R.2525 is "tax once but only once", cascading tax schemes, which transaction taxes are, are expressly prohibited under the NRST. Retail is by definition in the bill, not a sale for business or investment purpose, and education is expressly defined as being investment.
H.R.2525
SPONSOR: Rep Linder, John (introduced 07/17/2001)
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Refer: http://www.fairtax.org & http://www.salestax.org
You buy something, paying the NRST for it, you can turn around a sell that same thing and not collect another tax. Retail for the purposes of the bill, is the final sale that includes the tax. Business to business sales are not taxed if the product or service is for use in generating income. Businesses would only pay the NRST on items for final consumption, like Dixie cups for the company picnic.
What percentage NRST do YOU think is most likely (ballpark figure)?
Why ball park? The exact number is in the bill H.R.2525, 23%. 14.91% for general revenues + 8.09% SS/Mediscare funding.
Get rid of some programs going in:
23%........... HR2525 (NRST) rate
14.91% ..... rate if Social Security and Medicare were privatized
14% .......... rate if Nat'l Endowment for the Arts were eliminated
11.9%........ rate if Dept. of Education were eliminated
10% .......... rate if welfare were eliminated
9.8%.......... rate if foreign aid were eliminated
etc.
Hmmmmmm....... It's do able, with time and effort, once the blinders are removed from the electorate.