Tiahrt advocates national sales tax to help create jobs

Wichita Business Journal ^ | March 25, 2004 | Ken Vandruff

[ancient_geezer]

Tiahrt advocates national sales tax to help create jobs

Ken Vandruff

A national sales tax is just one part of a package that U.S. Rep. Todd Tiahrt, R-Goddard, says will help prevent outsourcing of jobs overseas and aid the creation of jobs at home.

Tiarht coupled the call for a national sales tax with the elimination of all income taxes. He says it will help make American products more cost-competitive in Europe and Japan.

The congressman says he's seen research that shows that taxes make up 22 percent of the cost for everything made in this country.

"People would have more control over their income, and we'd be more competitive overseas," Tiahrt says. "Let's talk about it. If America's not ready for it and wants to stay with the current system, then we'll look elsewhere to make our country more competitive."

The plan could exempt food and drugs, but would be applied to all other retail purchases.

The overall package, dubbed the "Hire Our Workers" initiative, also includes finding ways to reduce the paperwork associated with health care, review of government regulations, liability reform and revisions to the nation's energy policy. Tiahrt says a timetable has been established for reviewing each piece of the initiative starting in late May or early June.

The initiative has the support of GOP leadership in the Congress and the White House.

Tiahrt announced the initiative while visiting aviation subcontractor Thayer Aerospace, 4201 S. 119th W. After his announcement, Tiahrt toured the plant to see how the company is investing in machines that reduce the amount of time it takes to make aircraft parts.

[ancient_geezer]

will help prevent outsourcing of jobs overseas and aid the creation of jobs at home.

I don't see how there would be much of an impact on outsourcing jobs overseas per-se but creating new jobs by returning manufacturing to the US makes a great deal of sense from a foreign trade perspective.

Noting how the NRST acts as an effective revenue tarrif on imports and relieves domestic business of many taxes & compliance cost on goods going out, changes the the foreign trade equation tremendously.

It is easy to understand the result the survey here suggests:

Rep. Bill Archer, Chairman, House Ways and Means Committee 105th Congress:

• "A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."

[ancient_geezer]

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

 

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The overall package, dubbed the "Hire Our Workers" initiative, also includes finding ways to reduce the paperwork associated with health care, review of government regulations, liability reform and revisions to the nation's energy policy. Tiahrt says a timetable has been established for reviewing each piece of the initiative starting in late May or early June.

The initiative has the support of GOP leadership in the Congress and the White House.

refer also to related news DeLay calls for national sales tax

Which sets action on the repeal of income tax & NRST a target for 2005-2006 session of Congress

[eskimo]

A national sales tax is just one part of a package that U.S. Rep. Todd Tiahrt, R-Goddard, says will help prevent outsourcing of jobs overseas and aid the creation of jobs at home.

Oh God, the government that is directly responsible for sending jobs out of this country wants to tax those in this country to create more jobs. That's hilarious.

Anyone with half a wit would realize that any new jobs created by such unscrupulous leaders could also be sent out of this country in order to raise that tax. How stupid are people?

[crz]

As long as they scrap the present system altogether forever! The present Income tax was actually supposed to be ended in the late 40s after WW2. But, the polititions saw a boon and took advantage of it and we have been paying for it since.

[ancient_geezer]

Oh God, the government that is directly responsible for sending jobs out of this country wants to tax those in this country to create more jobs. That's hilarious.

How do you figure anything will be corrected from the past without legislative action through Congress to make the changes necessary Hmmmm?

 

I suggest you take abit closer look at the key element of the initiative he is talking about:

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, S.1493
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

See: http://www.fairtax.org/research.asp?pageid=21

And read the Frequently Asked Questions page for a quick review.

 

And then come back and discuss the actual issues rationally rather than explode with a kneejerk rant.

[eskimo]

I suggest you take abit closer look at the key element of the initiative he is talking about:

Look, all the "cut and paste" propaganda you have is just not going to mask the simple logic of the situation.

[ancient_geezer]

As long as they scrap the present system altogether forever!

Its up to us to push to see that is done, the legislation has been developed and introduced through the efforts of a group of small businessmen, out of Houson over the last decade.

H.R.25, S.1493
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

Which proposes total repeal of all federal income, payroll (FICA), and gift/estate taxes, and calls for an amendment expressly prohibiting all income taxes.

[ancient_geezer]

Look, all the "cut and paste" propaganda you have is just not going to mask the simple logic of the situation.

You can certainly ignore information if you wish. It is no wonder that nothing much is ever be accomplished in changing government with folks like you cheering things along.

We have seen the enemy and he is us!
POGO 1971

We get the government we elect, and allow to stay inplace, for lack of interest.

[eskimo]

We get the government we elect, and allow to stay inplace, for lack of interest.

Well when the "we" dwindles to single digit percentages of the population, which is possible very soon, any tax ploy to maintain the status quo will be as insignificant as the mandate to maintain the bloated behemoth that pillages and loots those they were hired to serve.

[crz]

Actaully..lets say that GW Bush wants to repeal the present income tax. All he has to do is abolish it. Its unconstitutional and direct tax has been ruled as such before. So congress may not need to pass any "new" law. All they need do is direct the placement of the excise tax as permitted by law.

Of course this is all the result of the thoughts of extremist right wing radicals..How many Presidents have ruled that income tax is not legal other than in the time of declared war?

[Willie Green]

The plan could exempt food and drugs, but would be applied to all other retail purchases.

Boy, Todd Tiahrt is really misinformed on this one!!!

Hey geezer!
When are you shills gonna tell this guy that yer planning a whopping 29% sales tax on EVERYTHING, including new homes???

[ServesURight]

The NRST is a joke. There'll never be a sales tax because Washington is too chicken s--t of all the tax lawyers, accountants, lobbyists, and government employees who make a living off the income tax.

Any implementation of the NRST will have to repeal the 16th Amendment first. My biggest fear is that the NRST will be used alongside with the income tax, probably to prop up Socialist Security and Medicare.

Plus the sheeple are just too brainwashed on the income tax. There'll be screams of saving their precious home mortgage deductions and other income tax trojan horses that politicians use to keep them in chains.

[eskimo]

My biggest fear is that the NRST will be used alongside with the income tax, probably to prop up Socialist Security and Medicare.

That, I believe, would be the obvious conclsuion of most of the old timers I know.

[Green Knight]

Did you miss this part?

The congressman says he's seen research that shows that taxes make up 22 percent of the cost for everything made in this country.

According to the FairTax people, with the switchover to a NRST, the price of everything will drop 20-30%. And the NRST is 23%, not 29%. Though it can get up there when combined with State Sales Tax. But here, let me paint a picture using Florida as an example (Florida has a 7% Sales Tax).

Let's say that 22% figure is accurate, and everything drops in price by 22%. Let's go with an Advent - 27" Flat-Tube HD-Ready TV. That tv is $499.99. Currently, with Sales Tax attached, it comes out to $534.99.

But after the NRST, the prices drops 22%, down to $389.99. Applyin a 30% Sales Tax to that (National + Florida Sales Tax combined) it comes out to a grand total of $506.99. That's $28 cheaper. As everything else will end up cheaper. And that's without taking into account the fact that you'll be keeping 100% of your paycheck, or that it'll probably include monthly tax rebates up to a certain level.

[Willie Green]

Did you miss this part?

No. It's easy to see that the congressman's eyes glazed over when he was deluged in a flood of NRST propaganda. So what if he's superficially impressed by some of their wild claims? Sheeeesh, the bozo doesn't even know that they're gonna tax food and medicines.

[eskimo]

According to the FairTax people, with the switchover to a NRST, the price of everything will drop 20-30%.

What if it's only 20% or they have guessed too high?

[ancient_geezer]

All they need do is direct the placement of the excise tax as permitted by law.

That is what the legislation of H.R.25 does, it repeals/removes of all statutory law regarding federal income, payroll and gift estate taxes and implements a retail level excise in their place.

[Green Knight]

If it's only 20% then the prices still end up lower on balance. A $3 item after State Sales Tax is $3.21. After its price drops 20% to $2.40, with NRST + State Tax it comes out to $3.12. Nine cents cheaper then previously. So even if the prices drop in the low end of the spectrum, you still end up with some savings.

[Green Knight]

So you're saying then that prices won't drop at all?

[ancient_geezer]

What if it's only 20% or they have guessed too high?

Well then you can invest more income to get it out of their clutches, while yelling at them that tax rates are too high knowing you have every welfare mother, bum on the street, ... right there along with you doing the same.

Everyone who now could care less about income tax rates because they don't perceive they are paying any, suddenly has a vested interest in keeping them down.

The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.

[To illustrate the NRSTs effect you can examine the tax burden that a family of four will have at various annual expenditure levels.

H.R.25