Unlce Sam dosen't want it because it means giving up control of your money. Since we would have more control over it.
When my daughter was born we had a question about deductions. We contacted the IRS and they had the WRONG answer. It's just too complicated.
I don't think TurboTax and scores of tax preparers would be too happy about it either.
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Unlce Sam dosen't want it because it means giving up control of your money. Since we would have more control over it.
When my daughter was born we had a question about deductions. We contacted the IRS and they had the WRONG answer. It's just too complicated.
I don't think TurboTax and scores of tax preparers would be too happy about it either.
I think Uncle Sam would love it. It's those pesky politicians and lobbyists that would hate to see it. With no more IRS and Income tax, what do the lobbyists lobby for, for large corporations?
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Last edited by countymounty; 09-22-2008 at 12:38 PM.
Reason: merge
I don't know (or remember) many details about the concept, although its quite attractive due to it's simplicity.
However, one thing I have yet to hear much about is the transition. How do supporters of the Fair Tax plan to implement it, if it ever becomes law? How will taxes be collected, how will the process be managed to ensure all the pieces work properly?
My project-oriented background is kicking in now, so I'll just let someone in the know answer my question.
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When learned men begin to use their reason, then I generally discover that they haven't got any.
In the struggle for existence, it is only on those who hang on for ten minutes after all is hopeless, that hope begins to dawn.
However, one thing I have yet to hear much about is the transition. How do supporters of the Fair Tax plan to implement it, if it ever becomes law? How will taxes be collected, how will the process be managed to ensure all the pieces work properly?
I don't remember it off the top of my head. But the way to implement it (at anytime) is discussed in full in the first book I posted. I'm too tired and too lazy to look it up right now, lol.
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'05 Ford GT TT by Stage6 Motorsports
Repeal the 16th amendment and place in a national retail sales tax. The government doesn't collect taxes. You pay them when you purchase something.
You get your whole paycheck on payday. No withholdings.
here's some info that defines it better Americans For Fair Taxation: Americans for Fair Taxation
Repeal the 16th amendment and place in a national retail sales tax. The government doesn't collect taxes. You pay them when you purchase something.
You get your whole paycheck on payday. No withholdings.
here's some info that defines it better Americans For Fair Taxation: Americans for Fair Taxation
Substitute the existing federal highway tax on a gallon of gas with the "fair tax" and see how much you save per gallon of tax. Dont forget to keep the state and local tax applied to that gallon of gas because those taxes are not affected.
A national sales tax will not work unless the 16th Amendment is repealed.
Otherwise you will have double taxation ie. a high sales tax on top of an income tax = disaster.
A flat tax is the real answer. Everyone who makes over $30,000 pays 10%.
There are no deductions and no tax shelters. Of course the CPA's and tax attorneys will be on the unemployment line.
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XM,
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Sorry about the double post. Can't figure out how that happened?????
Took care of it. It can happen when the site is slow and you hit the submit button twice. Happens to me sometimes.
Good topic, and one which I support, of course.
The two Boortz/Linder books are the best I have seen for explaining the whole complex topic.
I agree with all that has been said thus far. The NRST (national retail sales tax, of which the FairTax is one version) is usually designed to be revenue neutral, ie, to raise just enough money to replace Federal income and payroll taxes. It is NOT a tax decrease in and of itself, but an alternative to our current system. It has NO effect on the various other taxes such as local and state sales and income taxes. (It is a Federal tax).
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tripleblack
"You can never be free until you let yourself go."
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Although designed to be revenue neutral (neither a tax increase or a tax decreas), the effects are profound.
Eliminating ALL Federal payroll and income taxes means that the individual gets to CHOOSE when and where to pay their taxes (literally when they elect to purchase something).
Corporations would save approximately half a trillion dollars per YEAR when they no longer have to collect, account for, and pay income taxes, both for themselves AND for their employees. This will yield a huge net benefit to all businesses, freeing up capital currently invested in the tax infrastructure and making it available for things like expansion, research, and new jobs. Its NOT a zero sum game here - the savings are real and immense.
An estimated $14trillion dollars currrently off-shore hiding from our confiscatory tax system will flow home to be invested in our economy instead of that of our foreign competition.
There is a long list of other effects. I heartily endorse the two books.
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tripleblack
"You can never be free until you let yourself go."
Another effect of the national retail sales tax would be that it would effectively include "under the table" jobs, since whenever you bought something, it would be taxed.
I'm sure there are lots of issues with it (16th Amendment, as mentioned before) but I kind of like the idea. I'm not an accountant by any means, and I really dislike working with taxes ever since we bought a house and started selling stock and having to deal with capital gains taxes. I have no objection to actually paying them, but I just don't like the calculations (even with TurboTax) going into them.
But, with the NRST, you could make as much money as you wanted, and be taxed very little (relatively speaking) if you didn't buy lots of big ticket items. If you went out, and bought big houses, expensive cars, etc. you'd be dinged pretty hard.
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Our black and gray markets are huge - easily about 30% of the total economy. Right now, criminals, tourists, and so forth get a free ride. Those wealthy crooks and drug dealers with no "legal income" pay nothing toward the society they suck blood from. Visitors to this country enjoy a free ride as well (when one of us visits Europe, rest assured their VAT and other taxes exact our share of the load).
Oddly enough, it is the super wealthy who probably benefit the most.
Many of these people have no "jobs" per se, and are in a position to hire legions of tax professionals to manage their assets to avoid paying taxes. Just because someone is WORTH billions does NOT mean that they have billions in income to be taxed!
But these very wealthy people DO consume a lot. Right now, they get a virtually free ride - no income, no income tax. Just having $10billion in the tax-free bonds doesn't mean you are paying your share of supporting our national infrastructure. Many don't. By switching to a pervasive NRST, all these guys will start to pull their share of the load. The more they spend, the higher the portion of the load they assume.
Quote:
Originally Posted by smokeshow
Another effect of the national retail sales tax would be that it would effectively include "under the table" jobs, since whenever you bought something, it would be taxed.
I'm sure there are lots of issues with it (16th Amendment, as mentioned before) but I kind of like the idea. I'm not an accountant by any means, and I really dislike working with taxes ever since we bought a house and started selling stock and having to deal with capital gains taxes. I have no objection to actually paying them, but I just don't like the calculations (even with TurboTax) going into them.
But, with the NRST, you could make as much money as you wanted, and be taxed very little (relatively speaking) if you didn't buy lots of big ticket items. If you went out, and bought big houses, expensive cars, etc. you'd be dinged pretty hard.
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tripleblack
"You can never be free until you let yourself go."
The fair tax 
