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WSJ: The Tax Cuts Did What?!
Wall Street Journal ^ | September 8, 2005 | JOHN BERTHOUD

Posted on 09/08/2005 6:07:43 AM PDT by OESY

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To: Skip Ripley
The actual bite of government is already visible enough. People are just too lazy to take note of it or they accept it as a certainty of life (...death and taxes).

Oh, really? Do you honestly know exactly how much you paid, both directly and indirectly, in federal taxes last year? By indirectly, how much of what you spent went to satisfy the VAT-like effects of corporate income and payroll taxes.

21 posted on 09/08/2005 7:49:48 AM PDT by kevkrom ("Political looters" should be shot on sight)
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To: kevkrom
There's this little thing called "US Customs" you might want to look into.

Sure. And they check everything that comes in via our friends north and south of the border, don't they? So...you buy the diamond ring overseas, pay cash, and have it shipped to your cohort in Mexico, take a trip to Tijuana, and you & the wife come back with your tax-free swag.

How do you propose the government will enforce that tax assessment without mandating Federal Receipts that must be provided on demand from the local tax assessor?

"Fair Tax" isn't.

22 posted on 09/08/2005 7:51:28 AM PDT by Prime Choice (E=mc^3. Don't drink and derive.)
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To: AmericanDave

If a national sales tax were to become law and the income tax were removed, the government would soon find that many of the rich maintain their wealth by spending within their means (i.e. saving ... not spending).

A movement by the libs would soon ensue to have the rich pay their "fair share" and the income tax would be revived for the wealthiest. As inflation hits, more of us would find ourselves pushed into the "wealthiest" category, until we not only pay sales tax, but also income tax.


23 posted on 09/08/2005 7:55:25 AM PDT by ChiefJayStrongbow
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To: AmericanDave
I can not support the fair tax. I support a flat tax. 10-12% across the board no matter how much you make, and that's it.


If you want a Google GMail account, FReepmail me.
They're going fast!

24 posted on 09/08/2005 7:56:51 AM PDT by rdb3 (I can do all things through Christ which strengtheneth me. --Philippians 4:13)
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To: highlymotivated
The only problem is that there is no STRICT ACCOUNTABILITY of how the porkers spend our cash.

The problem is that the Republican Party is a lying sack of crap. "Limited government", my butt. Just more free-spending, Big Stupid Government politicians.

And most idiots will learn absolutely nothing from Katrina about how government wastes hundreds of billions of dollars every year.

25 posted on 09/08/2005 7:57:26 AM PDT by Hank Rearden (Never allow anyone who could only get a government job attempt to tell you how to run your life.)
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To: Prime Choice
Nope. It'd just create more government intrusion in your life as you'd have to start showing government-approved receipts for everything you purchase. This will ultimately occur, along with a higher percentage than the Koolaid drinkers care to mention

I have wondered how easy it really is to track to make sure tax was paid on every new item. You would have to put serial numbers on every item so there is a record if you really want to track. Then you have consumer type stuff bought tax free by businesses. That stuff eventually gets converted to personal use. How easy is that to track? Stuff bought overseas, how do you track that? The government would have to inspect every package mailed from overseas or go through every piece of luggage of people entering this country. It really is not as easy and unintrusive as some would have you believe.

26 posted on 09/08/2005 7:58:07 AM PDT by Always Right
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To: Prime Choice

This would be an example of illegal tax evasion. People break the law under all tax systems. I thought the discussion was on legal ways to avoid taxes.


27 posted on 09/08/2005 7:59:01 AM PDT by kevkrom ("Political looters" should be shot on sight)
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To: OESY

John Berthoud bump. Worked with him in DC about 15 years ago...


28 posted on 09/08/2005 7:59:22 AM PDT by Corin Stormhands (Join the Hobbit Hole Troop Support - http://freeper.the-hobbit-hole.net/)
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To: kevkrom
This would be an example of illegal tax evasion. People break the law under all tax systems.

It'll be incredibly easier with a regressive tax system like the inappropriately-named "fair tax." Ultimately, the cheating and black market mayhem on government revenues will be such that a double-digit tax rate hike and invasion of privacy for all purchases will be inevitable. Bah...count me out.

29 posted on 09/08/2005 8:00:50 AM PDT by Prime Choice (E=mc^3. Don't drink and derive.)
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To: kevkrom
The FICA replacement taxes are barely more than a thrid of the total NRST rate.
How do you know? The "combined rate" won't be determined untill after the first year of enactment...Read the bill
30 posted on 09/08/2005 8:27:31 AM PDT by lewislynn (Status quo today is the result of eliminating the previous status quo. Be careful what you wish for)
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To: lewislynn
How do you know? The "combined rate" won't be determined untill after the first year of enactment...Read the bill

You know well that I have read the bill, and that I understand it far better than you, who still continue to repeat oft-disproven lies about it. My comment about the the relative rates were based on the version in Congress, where of the 23% tax-inclusie rate, 14.91% is for general revenue and 8.09% is for FICA replacement. That works out to 35% of the total rate, or barely more than a third, which is what I said.

That aside, it still doesn't excuse you from the lie that Congress has no say in what the rate is, because they still have absolute control over the general revenue rate. The ratio of general revenue to FICA replacement will of course vary over time, but that isn't really relevant to the point of the converation, now is it?

31 posted on 09/08/2005 8:33:34 AM PDT by kevkrom ("Political looters" should be shot on sight)
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To: kevkrom

The corporate and payroll tax effects are minimal compared to the more obvious taxes and fees that we pay.

If the simple math of comparing gross pay to net pay isn't enough to fire most employed Americans up, nothing will


32 posted on 09/08/2005 8:54:38 AM PDT by Skip Ripley
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To: rdb3
I support a flat tax.

So do I, and it has the huge advantages of being both politically achievable and sellable to the public. It will still be an uphill fight, though, as government isn't going to give up an unparalleled behavior modification tool like the current tax code unless they are under a dire threat of losing their jobs.

33 posted on 09/08/2005 9:01:01 AM PDT by Mr. Jeeves ("Violence never settles anything." Genghis Khan, 1162-1227)
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To: OESY
Fellow Freepers:

At the suggestion of writer Michelle Malkin last Friday, I have cobbled together a blogsite called Texas Clearinghouse for Katrina Aid to serve as a clearinghouse for refugee efforts in Texas.

Texas is getting more refugees than any other state -- that's fine, we'll take them all -- but we need help providing them with food, clothing, medicine, and shelter. We need help taking care of their pets, too.

If you are a refugee, you can information that will help you find relief. If you want to donate or volunteer, you can find someone who needs you. Believe me, there are a lot of organizations who need your help.

Right now the site mostly covers Houston, San Antonio, and Dallas but I'm adding more every night. My wife was down at Reunion Arena in Dallas Tuesday handing out care packages and spiritually ministering to the refugees as a representative of her employer. She says that the situation is tragic and that there's a lot of work to be done. There are so many children who don't know where their parents are or even if their parents are still alive.

There are a lot of churches and other organizations in Texas that need help in dealing with the problem and I would appreciate it if you would get the word out.

Many thanks,

Michael McCullough

Stingray blogsite

34 posted on 09/08/2005 4:11:01 PM PDT by DallasMike
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