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.
The 23% is the figure I had always seen, but wasn't sure that was the ONLY level. Also, by your description (which is much easier for me to understand than the "legaleeze" of the proposal), I wouldn't be paying taxes on as many types of expenditure as I had thought (e.g., not on education costs).
Thanks for explaining instead of flaming! I'm a summa cum laude engineer and, I guess by stereotypical definition, have the damnedest problem reading and understanding the language used in contracts, court documents, government bills, etc.!! Give me Maxwell's equations instead.....LOL!!