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| Dump the IRS!; fairtax.org | |
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| Topic Started: Feb 20 2006, 07:38 PM (976 Views) | |
| Post #21 Mar 24 2008, 11:36 AM |
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1. A national sales tax at the retail consumer level only would insinuate that companies are not consumers and exempt them from taxes altogether while creating a high sales tax for all retail level consumers. 2. It would not eliminate the IRS. The IRS would also need to register new businesses and audit them (all 22,659,000 as of 2003) to ensure that they are sending the money in that they are collecting from consumers. Depending on how the tax was set up, the IRS job might even be more complicated. 3. The Fair Tax would almost certainly not eliminate lobbying and claims for 'deductions'. Bill Spillane said the only subsidy U.S taxpayers would receive would be a general income equal to the poverty level ($6,400 or whatever it was). It's hard to believe there wouldn't be lobbying for more. Charities would certainly get a lot of sympathy if they argued that sales tax payers should be able to send in tax receipts and receive money from back from the government equal to a percentage paid to the charity. There are many other worthy tax deductions and credits, for instance those that benefit the physically and mentally challenged. Again, it would be hard to imagine these people not receiving subsidies to equal what they presently receive in tax deductions and credits. The fair tax would not eliminate lobbying, it would merely shift the demand from credits and deductions to direct subsidies. 8.The Fair Tax would not eliminate tax cheating. What about a small business owner who would be attempted to claim personal expenses as business expenses so as to receive an input tax rebate? The other obvious examples of tax cheating are bartering: exchanging of one good for another, and cash payments 'under the table'. There is already an incentive for businesses to do both of these so consumers don't have to pay present sales taxes, but a 23% tax rate would add a great deal of incentive to greatly multiply these activities. Again, the U.S government would need a very active IRS to root out these practices. |
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| Post #22 Mar 24 2008, 11:38 AM |
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I don't know why no other country uses the exact system. Some do use systems that are similar. But, that's not the issue. Is there something about what is actually proposed that you want to discuss? If not, I'm moving on. Anything else is deflection, and we don't go for that here. Please discuss the issues at hand. The capability exists to start other discussions on other topics. This discussion is about the FairTax proposal, not any other nation's tax system. |
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| Post #23 Mar 24 2008, 11:58 AM |
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1. The site explains that all consumers pay the tax, corporations, companies, The Boy Scouts, Churches, the government at all levels, schools, NASA, the Russian embassy, Bill Gates (likely at a many times higher rate than he pays now), and everyone and everything else that purchases consumer goods. The tax that you, as a real human being, pay will be significantly reduced by having prebated the tax that would be spent by a family of your size at the poverty line. Between the monthly prebate of poverty line taxes and your increased paycheck due to having zero taxes (withholding and payroll) taken out, you (unless you are wealthy) should experience a net gain in spending power. 2. Monitoring retail sales businesses, who already, as a matter of course, are keeping the needed records would require an agency a tiny fraction of the size than the one that is needed now to monitor every business and every individual in the US. This agency would only impose itself on businesses that do retail sales. All other businesses and all people would never have to come into contact with this agency save for keeping them apprised of how many family members you have and cashing the monthly checks. 3. The FairTax would certainly eliminate lobbying for deductions. There are no deductions in this system. (You might want to recheck that poverty level. I don't know where you got it from, but assuredly, it wasn't the one in the proposal.) 4. The FairTax would virtually eliminate cheating. People will find ways to cheat, certainly. But, when the number of people who have to fill out paperwork and send in taxes is reduced to such an extent (and include people who already, for other purposes, have the burden to keep the necessary records), cheating will be much harder to do and even harder to get away with. Local tax agencies, who are already collecting taxes from these retailers, would have to be lied to also. Cheating can never be eliminated. But, it can be reduced to almost nil and it can be rooted out more easily. Personal and business expenses make no difference. The tax is paid on all retail purchases, even by businesses. The FairTax site makes this clear. There are no deductions. None. Zip. Zilch. Nada. And, therein lies the simplicity that virtually eliminates cheating. |
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4:16 PM May 20