Posted on 02/13/2004 11:12:16 AM PST by ancient_geezer
Farm Bureau says FairTax Bill a Priority
HONOLULU--(BUSINESS WIRE)--Feb. 2, 2004--At its national convention, the American Farm Bureau Federation moved to make replacing the income and payroll tax systems a priority, FairTax announced today. On the last day of the convention the AFBF board named the FairTax legislation (HR 25/S 1493), a national retail sales tax, as a priority issue for education and dissemination to its five million members.
The Americans For Fair Taxation (www.fairtax.org) legislation replaces, rather than "reforms," the current complex income tax/payroll deduction structure with a revenue-neutral retail consumption tax called the FairTax. During the American Farm Bureau Federation annual convention, FairTax Executive Director Tom Wright and National Farm Bureau Liaison John Collet campaigned for farmer and rancher support of this tax change, which is already gaining support on Capitol Hill. The FairTax group has spent the last year working with more than 30 state farm bureau organizations in a coordinated, nationwide effort to raise farm bureau leadership awareness of the bill's details, laying the groundwork for this vote.
"Internationally, income and payroll taxes and the cost of compliance burden our farm exports, making them less competitive on the world market," Wright told farmers in a speech sponsored by The Heartland Institute's Budget & Tax News. "Domestically, the current system targets our working poor for abuse, while burdening them with regressive Social Security taxes. The FairTax improves export competitiveness across the board -- not just for agriculture -- while relieving the burden on our working poor and creating much needed jobs."
According to Mr. Wright, the FairTax proposal is designed to be "revenue neutral," raising the same amount of revenue as do personal and corporate income taxes, payroll and Social Security taxes, and gift and estate taxes, while replacing all these with a system some 90 percent smaller, less intrusive, and less expensive. A dedicated income stream from this broad-based sales tax would replace the narrow, regressive payroll tax currently used to fund Social Security and Medicare.
"The FairTax has been in our policy book for years," stated AFBF President Bob Stallman. "It does address many of our policy issues on federal tax reform, including estate taxes, capital gains, alternative minimum, and more. With this vote of the board, we'll be taking a good look at how the FairTax proposal compares to our current tax system and our desire for needed reforms."
These national retail sales tax measures already have been unveiled in the House and Senate this session, one by Rep. John Linder (R-GA) and Rep. Colin Peterson (D-MN) and the other by Senator Saxby Chambliss (R-GA) and Senator Zell Miller (D-GA). House Majority leader Tom DeLay is a co-sponsor. The sweeping measure would take farm and ranch producers "out of the tax system entirely," as long as their operations are not involved in retail sales, said Tom Wright.
"With the FairTax, farmers are out of the tax business entirely," continued Wright. "No record keeping, no filing, no complex planning, no audits, no alternative minimum tax, no self-employment taxes, nothing. The only place the tax is charged is 'under the bright lights of the retail counter' to the person who's going to wear the gloves or drive the car. There are no hidden taxes cascading through the system. Producers will make business decisions based solely on what is best for their farm and family, not tax consequences."
What is the FairTax?
The FairTax is a non-partisan proposal (HR 25/S 1493) that will abolish all federal income taxes, including payroll, self-employment, alternative minimum, income, capital gains, corporate and death taxes, and replaces them all with one simple, visible, federal sales tax. It will dramatically change the basis for taxation by eliminating the root of the problem: taxing income. The FairTax will tax us only on what we choose to spend, not on what we earn. It will not raise any more or less revenue; it is designed to be revenue neutral. The FairTax is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system, which particularly burdens our poor and fixed-income retirees. The FairTax proposal includes specific protections for these Americans, including ending the narrow, regressive Social Security tax, ending income taxes, and beginning a rebate to zero all federal taxes for all Americans (with a legal Social Security number) up to the poverty level.
What is FairTax.org?
FairTax.org is a non-profit, non-partisan, grassroots organization dedicated to replacing the current tax. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For more information visit the Web page: www.fairtax.org
If you would like to be added to this ping list let me know.
John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a pure consumption tax:
H.R.25
SPONSOR: Rep Linder, John (introduced 01/7/2003)
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.S.1493
Sponsor: Sen Chambliss, Saxby [GA] (introduced 7/30/2003)
Title: 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 sales tax to be administered primarily by the States.
So Ron Paul's amendment has a chance at enactment & ratification:
H.J.RES.15
Sponsor: Rep Paul, Ron [TX-14] (introduced 1/28/2003)
Title: Proposing an amendment to the Constitution of the United States relative to abolishing personal income, estate, and gift taxes and prohibiting the United States Government from engaging in business in competition with its citizens.
(But lets modified it to prohibit all income, payroll, gift estate taxes as HR25 calls for, or we will see European VAT style hidden taxes along with payroll excises to take over in the place of the of the current individual income tax(i.e. personal income tax) that Ron Paul amendment prohibits.)
I don't know of a single instance in which a candidate who supports the Fair Tax didn't win.
Bob Barr could tell us about it though, eh?
That is particularly true here in Texas where our state Republican party platform states:
"Federal Tax Reform - The Internal Revenue Service is unacceptable to U. S. taxpayers! The Party urges that the IRS be abolished and the Sixteenth Amendment to the U.S. Constitution be repealed. We further urge that the personal income tax, inheritance (death) tax, gift tax, capital gains, corporate income tax, and payroll tax be eliminated. We recommend the implementation of a national retail sales tax, with the provision that a two-thirds majority of the U.S. House and U.S. Senate is required to raise the rate. Such reforms will encourage investment and economic growth. Lastly, such a sales tax plan must ensure that no one in America pays taxes of any kind on the necessities of life, ensuring opportunity and quality of life for low- and fixed-income Americans."
The best option is HR 25, the Fair Tax.
bttt
You know E. V. I personally think someone could run successful campaign on that issue alone!
Well, both Senators I voted for in Georgia support this. I am still annoyed about Senator Saxby Chambliss supporting Bush's amenesty plan, but this is a good trade off.
They never answered the key question! What RATE are they proposing?
Sure they have, right here:
"(www.fairtax.org) legislation replaces"
and here:
"FairTax legislation (HR 25/S 1493), a national retail sales tax"
which means you can also go over to THOMAS -- U.S. Congress on the Internet and look it up, the revenue neutral figure required by law, 23% of total payment for retail products.
Your other choice is to continue to pay the income & payroll taxes as it is today:
The Individual Income Tax return(1040) that captures everyone's attention each April, is merely a partial VAT accounting sheet the government cons individuals, held at ransom, into filling out. Its misdirection puts blinders on the eyes of the electorate, and totally distorts their perceptions as to the real impact of taxation in their lives.
Every man woman and child in the nation, pays federal taxes through what amounts to a VAT.
DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation
The full impact of the federal tax system(taxes in gross wage/salaries & other compensation + business income/payroll taxes) added onto the base(taxfree) price of retail consumption goods and services is 36% for federal taxes alone.
All wages and the taxes on them are paid for out of sales receipts to business,(i.e. consumption expenditure).
family consumption expenditure is gross income less taxes and savings.
Federal tax revenues collected as % of family consumption expenditure = fed/(1-state-fed-savings) =
23.5/(1-.235-0.102-0.012) = 36.09%
If we add in the cost of federal tax compliance, planning, litigation & enforcement, the percentage that truely represents the burden on the family due to the Federal income/payroll tax system, product prices are increased by more than 55% over taxfree prices.
Where Have All the Dollars Gone?
How the government robs Peter to pay him back.
By economist James L. Payne, Reason Magazine February '94When the overhead costs are added together, (24 percent compliance costs, 33 percent disincentive costs, and 8 percent other costs), they total 65 percent of tax revenue.
Current total Federal tax revenues are about $1900billion, more than $1,000 billion additional dollars are added on onto consumption prices due to the business costs of complying with the federal income/payroll tax laws.
The percent total current federal burden (taxes + compliance costs) of consumption dollars = 36*(1900+1000)/1900 = 54.95% economic burden added on to base retail(i.e. taxfree) prices.
Too bad that citizens don't get a receipt detailing those "hidden sales taxes" buried in their consumption purchases. If they ever did, some of those 70% of the public clamoring for more from government, thinking someone else foots the bill, might be tempted to change their mind.
Anything over 10% exceeds the church requirement of tithe to run all domestic and foreign missions and welfare!!!
Government isn't anybody's church or haven't you figured that out yet? If you want a lower tax, start working on repealing government programs:
23%........... Effective total federal tax rate with respect to consumption expenditure
14.91% ..... rate if Social Security and Medicare were eliminated
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.
So lets look at what the maximum it would take to fund those functions clearly authorized under Article I Section 8 of the Constitution, in current dollars:
http://w3.access.gpo.gov/usbudget/fy2001/guide02.html#Spending
- $334 Billion --- Defense & Military related expenditure
- $ 31 Billion ---- Administration of Justice
- $ 16 Billion ---- General Government
- $199 Billion ---- Interest on the Debt
=========================
$580 Billion ---- Total
Institute an across the board, Flat rate, single stage National Retail Sales Tax, which taxes all imports and domestic products with the same rate.
Replacing present all current federal tax law with a retail sales tax would be 23% on new goods and services paid and receipted at the retail register. No hidden tax, no exceptions, exemptions everyone participates.
Such a tax acts in a natural manner to encourage the elimination of excess government functions through visibility of burden among all constituencies of the electorate.
The total federal government budget would move from $2,000 billions towards something less than $580 billions calculated.
The across the board federal tax rate on new goods and services would decline towards less than 6.7%.
As tax rate on sales decreases the economic burden on retail items, the sales volumes and growth in the economy would be tremendous allowing even further reductions in tax rates below that less than 6.7% theoretic level.
That is what I perceive as the ultimate achievements possible under a National Retail Sales Tax structured in the manner of the revenue bill H.R.25. Simple common sense applied to the principal of TANSTAAFEL,( no free lunch, everyone participates in paying there way in proportion to the benefit the extract from their consumption.) encourages the natural change in attitudes required of the electorate as regards the burden of government largess in their lives.
- It is fairer to tax people on what they extract from the economy, as roughly measured by their consumption, than to tax them on what they produce for the economy, as roughly measured by their income
Hmmmmmm....... It's do able, with time and effort, once the blinders are removed from the electorate.
It is to Hitlery!!!
It is to John "Hairy" Kerry!!!
It is to George Soros!!!
It was to Walter Moandale!!!
It was to Lyndon Bane Johnson!!!
It was to Jimma "Peanut" Carter!!!
It was to Franklin and Eleanor Roosevelt!!!
It was to Pol Pot, Chairman Mao and Ho Chi Min!!!
It was to Stalin, Hitler and is to Castro and his brother Che!!!
It is to Willie & Jerry Brown and Angela Davis, oh, and was to Gray Davis!!!
Of course Bill Clinton told us... "The era of big government is over," right? He took his show bible to church and took the rest of us to the cleaners!!!
This is voluntary? Just like the income tax is voluntary. I have to have a car to make any money, so I volunteer to pay 36% of the cost of the car, the state mandates I have insurance, a 36% increase in the cost of my premium is voluntary, the car breaks down, 36% of the 70.00 per hour I pay to get the car repaired is voluntary, I get sick and have to go to the Hospital, 36% of the hospital bill is voluntary? This is a case of "if you are going to lie, tell a real whopper."
Anyone who thinks all the hidden fees (taxes) we are now paying are going away if this passes is on drugs. I want to see the IRS, and the income tax go away as much as anyone, but I can't see this as the answer. The first thing we all need to remember is that the government has a spending problem, not a collection problem, until we force the tax, and spenders to get spending under control, we will continue "voluntarily" donating a large portion of our income to the government. This is Bill has no provision to bring any spending under control, it is a continuation of the un-ending river of money that funnds those addicted to spending as much of someone else's money as they can get their greedy hands on.
This looks like jumping from the frying pan into the fire.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.