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FairTax would replace federal tax system with simple alternative
Whittier Daily News ^ | January 08, 2005 | Peter Ueberroth

Posted on 01/09/2005 6:59:57 PM PST by ancient_geezer

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1 posted on 01/09/2005 6:59:57 PM PST by ancient_geezer
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To: Taxman; Principled; Bigun; EternalVigilance; kevkrom; n-tres-ted; Poohbah; CliffC; phil_will1; ...
A Taxreform bump for you all.

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 SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales 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 for additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html


2 posted on 01/09/2005 7:00:41 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer

What does every one think of this?


3 posted on 01/09/2005 7:04:56 PM PST by zzen01
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To: ancient_geezer
A 30% federal sales tax rate on top of state and local taxes is too much.

And there is no 20% embedded taxes in USA produced goods.

Stay in Fantasyland or CUT GOVERNMENT SPENDING!

4 posted on 01/09/2005 7:07:27 PM PST by balrog666 (I am against religion because it teaches us to be satisfied with not understanding the world.)
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To: ancient_geezer

This is great. The more proponents come out for it, the better the chances are of actually implementing it.

Ueberroth is right, when he says this:

"REPLACING our income and Social Security tax systems with a consumption tax FairTax, the best supported bill in this election cycle, depends not on whom is in the White House but on American taxpayers of all strata expressing their ire to elected servants. "

The people need to let the politicians know that the time of repealing the income tax and replacing it with a FairTax has come. I do disagree with Ueberroth that it doesn't matter who is in the White House. I think with Bush in the White House, in his second term, with a Republican Congress, the chances are as good as they may be in a long time. It's time to act now, and not miss this historic opportunity.


5 posted on 01/09/2005 7:09:03 PM PST by FairOpinion
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To: zzen01

If no exemptions/unearned incomes/special interest holes, I think it would work. What will probably happen though, will be the working class carrying it.


6 posted on 01/09/2005 7:09:40 PM PST by CindyDawg
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To: balrog666

Until the people of this country protest and stop the confiscatory taxation levels we suffer today, will there ever be TRUE REFORM. This and every sucsessful country needs taxation, but not at the levels of today, and without the control of the people. Government is out of control on taxation because they feel it is an infinite resource they can continue to take from, that will have no impact on their politics...be damned with what is right and reasonable upon Americans....

Don't complain unless you are willing to fight it....


7 posted on 01/09/2005 7:11:10 PM PST by EagleUSA
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To: balrog666

A 30% federal sales tax rate on top of state and local taxes is too much.

Why is it too much?


8 posted on 01/09/2005 7:12:18 PM PST by rolling_stone
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To: ancient_geezer

I would like to know how they intend to tell who is below the poverty line when someone goes into buy a new pair of shoes? Would they have a card saying they are tax exempt? What about those with higher incomes, would they carry a card saying they have to pay a higher tax rate? It all sounds fairly complicated to me.


9 posted on 01/09/2005 7:14:17 PM PST by need_a_screen_name
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To: EagleUSA

Ok. What do we do?


10 posted on 01/09/2005 7:16:31 PM PST by Calpernia (Breederville.com)
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To: ancient_geezer; Broadside

ping...

Hey, my friend! Could you add Broadside to the tax reform ping list, please?


11 posted on 01/09/2005 7:19:08 PM PST by EternalVigilance (Shaking nine point oh - With a deadly wave goodbye - oh four departed...)
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To: balrog666

"And there is no 20% embedded taxes in USA produced goods."

You are a fool if you believe that. Corporations don't pay taxes, they simply pass along the cost of taxes in the product they sell.


12 posted on 01/09/2005 7:20:26 PM PST by Blood of Tyrants (God is not a Republican. But Satan is definitely a Democrat.)
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To: ancient_geezer

I would oppose abrupt and sweeping tax changes. They are bound to be unfair to some classes of people, such as married people with children.

I would prefer a course of gradually changing and simplifying the tax laws, cutting out the obscure loopholes (some of which are directed to a single individual or corporation who did somebody a favor). Also, gradual tax cuts, such as the ones we saw during Bush's first term.

The government needs time to adapt, and people need time to adjust.

Also, it's not clear from this article what would happen to Social Security? Would it simply be dropped? On the one hand, the whole Social Security business is prohibitively expensive. On the other hand, it would hardly be fair to deprive people of benefits after they have paid in for fifty years and more. This, too, is something that needs to be dealt with gradually, so people can be weaned off a failed system. Actually, a far bigger problem than reforming income taxes, because we're short a trillion dollars or so.


13 posted on 01/09/2005 7:20:44 PM PST by Cicero (Marcus Tullius)
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To: FairOpinion
The essentials:

 

H.R.25

Fair Tax Act of 2003 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.25:


 

`Subtitle A--Sales Tax `SEC. 2. DEFINITIONS AND SPECIAL RULES.

`(a) IN GENERAL- For purposes of this subtitle--

`(5) GROSS PAYMENTS- The term `gross payments' means payments for taxable property or services, including Federal taxes imposed by this title.

 

`CHAPTER 1--INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC.

`Sec. 101. Imposition of sales tax.

`Sec. 102. Intermediate and export sales.

`Sec. 103. Rules relating to collection and remittance of tax.

`SEC. 101. IMPOSITION OF SALES TAX.

`(a) IN GENERAL- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.

`(b) Rate-

`(1) FOR 2005- In the calendar year 2005, the rate of tax is 23 percent of the gross payments for the taxable property or service.

 

*** snip ***

`SEC. 102. INTERMEDIATE AND EXPORT SALES.

`(a) IN GENERAL- For purposes of this subtitle--

`(1) BUSINESS AND EXPORT PURPOSES- No tax shall be imposed under section 101 on any taxable property or service purchased for--

`(A) a business purpose in a trade or business, or

`(B) export from the United States for use or consumption outside the United States, if, the purchaser provided the seller with a registration certificate, and the seller was a wholesale seller.

`(2) INVESTMENT PURPOSE- No tax shall be imposed under section 101 on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose.

`(3) STATE GOVERNMENT FUNCTIONS- No tax shall be imposed under section 101 on State government functions that do not constitute the final consumption of property or services.

`(b) BUSINESS PURPOSES- For purposes of this section, the term `purchased for a business purpose in a trade or business' means purchased by a person engaged in a trade or business and used in that trade or business--

`(1) for resale,

`(2) to produce, provide, render, or sell taxable property or services, or

`(3) in furtherance of other bona fide business purposes.

`(c) INVESTMENT PURPOSES- For purposes of this section, the term `purchased for an investment purpose' means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts.


14 posted on 01/09/2005 7:21:09 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer

Peter Ueberroth's support for the FairTax is indicative of the broad-based support that is daily growing for this near-revolution.

Way to go, Ueberroth!


15 posted on 01/09/2005 7:21:45 PM PST by EternalVigilance (Shaking nine point oh - With a deadly wave goodbye - oh four departed...)
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To: zzen01
do you really think Cindy Consumer is going to charm Charlie Cashier at Wal-Mart into collusion to violate federal tax laws

No, but contractor Bob will charm Cindy into collusion by giving her a better price if she pays in cash, you know, to minimize "paperwork". If this is a value-added tax, then the underground economy will grow enormously. If it's not a value-added tax, this post is inoperative.

16 posted on 01/09/2005 7:27:29 PM PST by Chaguito
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To: ancient_geezer
One problem I have yet to see the Fair Tax people address: What about people who've already paid income tax on all the savings they've socked away for retirement? When I retire, I'm going to start living off my savings (living large, or not). Under the Fair Tax, it seems like I'd have to pay tax on it (AGAIN) as I spend it, just as if I was spending current income (which I'm not).

Thus, you're taxing me twice on that money, once as Income Tax back when I earned it, again as consumption tax when I spend it.

17 posted on 01/09/2005 7:29:47 PM PST by newgeezer (When encryption is outlawed, rwei qtjske ud alsx zkjwejruc.)
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To: ancient_geezer

The politico's have a real problem. In 10 to 15 years 40% of the population will be supporting 60% as the baby boomers continue to retire.

Its this simple. SS is/will be 10 to 12 trillion in debt by 2010 (Newt Gingrich on Fox News). The money has been robbed from the trust fund by congress and past presidents..GW Bush included. Sorry, but thats the sad facts. It is also a safe bet that this government will be in excess of about 20 trillion in debt by 2010 as interest rates on that debt will increase it as well as rabid spending by congress. So, either the income tax has to be tripled by then, the retirement age raised to 70 plus as well as benefits for SS people cut in half as well as the budget cut by over one half or this government ceases to exsist very soon. We are soon to burden 40% of the population with that or we change.

A 10 to 15% national retail sales tax (NOT VAT TAX) is the only way viable to do that as it taxes EVERYONE who buys GOODS-NOT services. It taxes visitors to this country, illegal immigrants, imported goods, everyone. I DO NOT favor including Social Security into it as the polititions will continue to rob the system for that extra cash they need to grease their palms. AND spend only next year what is taken in this year-balance the budget with the top % going to pay down the debt and repay SS which they have stolen.

Ask them how much actual money is in the Social Security trust fund-not on paper, but actual reserves on hand. If they say its solvent, they are lying. But what the heck, thats what polititions are good at are they not?


18 posted on 01/09/2005 7:30:03 PM PST by crz
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To: need_a_screen_name

I would like to know how they intend to tell who is below the poverty line when someone goes into buy a new pair of shoes? Would they have a card saying they are tax exempt? What about those with higher incomes, would they carry a card saying they have to pay a higher tax rate? It all sounds fairly complicated to me.

All Legal US residents would be eligible for a rebate/prebate equal to the amount of taxes one would pay based on the poverty level, amount would depend on their family size. Thus one spending all their income at the poverty level will in essence pay no tax as it will be refunded to them in advance.

Tax rate would be the same for all rich or poor, it taxes consumption and it does not matter who consumes it, a rich person or poor person..logical.

Its about as simple as one can make a tax system, and while not 100% perfect its far better and fairer IMO than anything else that has been contemplated.


19 posted on 01/09/2005 7:35:38 PM PST by rolling_stone
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To: need_a_screen_name

"It all sounds fairly complicated to me."

A bit dense? Everyone pays tax on everything and at the end of the year, the portion you pay over the break even point is returned.

If the break even point is $20,000 and you pay 25% tax on 40,000, then the portion 25% OF 20000 = 5000 is returned.

Seems pretty simple to this child!


20 posted on 01/09/2005 7:37:43 PM PST by lawdude (Leftists see what they believe. Conservatives believe what they see.)
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