Skip to comments.Tax Changes on the Horizon
Posted on 11/05/2005 4:42:13 PM PST by ancient_geezer
Tax Changes on the Horizon
Buzz Timothy, BellaOnline's Accounting Editor
The President's Advisory Panel on Tax Reform finished its ten month investigation and research and has submitted its two best proposals to the US Treasury Department. The Treasury Department has said it will make its own tax reform proposals by the end of this year. Congress is scheduled to begin the tax reform debate next year.
But, what does tax reform really mean? Well, the tax reforms that have been put forth so far are at best disappointing, at worst they are nothing more than tweaks to an outdated, enormously confusing and cumbersome income tax system. The basis of both of the Panel's proposals is to reduce or eliminate deductions, thereby seemingly to simplify a cumbersome tax code.
However, if you look a bit deeper and really read the proposals, one finds that the panel has missed a great opportunity to come up with a tax system we could all live with. A tax system that is fair accross the board and fixes the one fundamental flaw in our current tax system, that is changing it from an income based to a use based system. Although one of the proposals is being touted as a Use or Consumption Based Tax, it is really not, it is truly an income based system being disguised.
The Tax Reform Panelists should have taken a blank piece of paper and devised a completely new, equitable and simple tax system. Instead they chose the politically easy choice of starting with the existing system and trying to change it, rather than fix it, when in fact, looking at their proposals, they have done niether they have only tweaked it.
What we need is a flat tax that is based on use. We already have this in place when in comes to gasoline, alcohol and cigarettes, why is it so difficult to think that this couldn't be expanded to all "used or consumed" items and completely do away with the income based system. As long as we live with an income based system individuals and businesses will always try to find ways to limit their incomes to hide from the overzealous tax code. However, if you change the focus of our tax system to a use based system then, "if you use it you pay". It really is that simple, and shouldn't that be our ultimate goal.
Here's one for you!
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
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:
What B.S. in light of uncontrolled/record breaking spending.
Nah, too simple. It would never work. People would be confused. The wouldn't know what to buy so they would sit home in a quandry and bring the econmy to a stand still. It would be a quagmire. Bring to troops home now.
Oops, wrong forum. Sorry.
When we stop government from stealing our money we can stop them from spending it. Put the horse before the cart.
What B.S. in light of uncontrolled/record breaking spending.
Of course there is the little problem that over half the electorate see all the spending as a freebee to themselves.
Right now the bottom 60% perceive little to no "Individual Income Tax" burden,(in many cases even a handout) and 70% of the voting public clamor for more from government looking for the top 40% of income earners/producers to foot the bill. That perception continues to grow ever stronger by eliminating even more participants from the Federal Individual Income Tax rolls as proposed in the tax reduction proposals through changes in personal exemption limits, modification of tax bracket rates and other mechanisms such as the EITC.
Another 3.9 million Americans will have their income tax liability completely eliminated, officials said.
That's 3.9 million Americans more added to the spending constituency of 70% of the public clamoring for more from government, figuring someone else foots the bill.
"It's like me in the restaurant: What do I care about extravagance if you're footing the bill?"
--- Walter Williams
The Intent of the individual income tax is for political and social control not revenue collection. The Individual Income tax is maintained to establish and hold every person in the country perpetual legal and economic jeopardy. That is a situation that must end with the repeal of the income tax from the statutes, and the prohibition of its use by Constitutional amendment that future generations will not face the same manner of manipulation and interference in their lives.
If we expect to see control of government spending, we had best look to make the burden visible to the whole of the electorate, not just the few designated as the token guy behind the tree.
That my friend is one of the bottomline purposes of going to an NRetail Sales Tax, make the cost of largess perceptible to the entire electorate, even the lowest most rungs of the economic ladder.
A sales tax is no better than a flat tax.
Remember, the changes Bush does will only be TEMPORARY. The democrats will eventually UNDO everything. It's only a matter of time.
Don't bother vacuuming your carpet, either... It's just going to get dusty again. :o/
The democrats will eventually UNDO everything. It's only a matter of time.
The grass root method if engaging the masses to force congress to implement the fair tax, abolish the IRS and repeal the 16th amendment doesn't stop there. The upper hand, as it should be, will be with the people.
The carpets will be in perpetual clean mode and thus there will be no step backwards. The masses, as they will have demonstrated their power, will scream, "get the dirt before it hits the carpet".
Might as well give up on that as well!
...the movement for consumption-based taxation has been hijacked by a group of extremists whose principal interest is abolishing the Internal Revenue Service.21 They believe that if virtually all federal taxes are abolished and replaced with a retail sales tax like those in the states, then the states can simply collect the federal government's revenue for it, thereby allowing for abolition of the IRS...
21 The Church of Scientology originated this legislation as part of a campaign against the IRS because it refused for many years to allow gifts to the church to be deducted as legitimate charitable contributions, on the grounds that it was not a true church. The IRS eventually relented. See Davis (1997) and Starobin (1995) for discussions of the Church of Scientology's role in the sales tax campaign.
Davis, Bob. 1997. "CATS Out of the Bag." World, 12:9 (May 31/June 7).
Starobin, Paul. 1995. "No Returns." National Journal (March 18): 666-671.
The only difference between the Democrats and the Republicans is suicide as opposed to terminal illness.
The grass roots movement doesn't have a political axe to grind.
By the way, eminent domain has been an issue for years.
Thanks to the internet there's allot of discussion that is moving toward rectifying abuse of eminent domain. As to other histories you mentioned, they were all before widespread Internet.
Despite a severely biased MSM amid shrieking celebrities the move towards honesty elected George W. Bush President. Of course, Swift Boat Veterans for Truth are credited too, aided by the Internet.
I agree in principle, but what is to stop people from "hiding" consumption... aka, a new black market?
What do you mean a sales tax is no better than a flat tax?
Income taxes are in and of themselves un-Constitutional and inherently evil.
Not to mention our current income tax system is fraudulent from its inception.
Message to Republicans running for national office: Rid the nation of the Gestapo IRS and you'll probably get all of my support (unless you're a pro-abort gun-grabber).
In your mind, how is that relevant? Are you implying that the Church of Scientology spent millions of dollars researching methods of taxation and wrote HR25? Consumption tax idea has been around longer than the Church of Scientology. Be honest or proceed at your own peril.
Might be worth pointing out something:
If you have a complex tax system with deductions and methods for avoiding taxes, then eliminating those methods and complexity punishes the smart.
Simply that. If the smart have an advantage now and you take it away from them, that's punishment.
Can rich dumb people pay accountants? Yes. But over the long run those accountants may cost them more than they save.
It is not clear to me there is value in simplifying the tax system.
I appreciate the tool that the internet has provided regarding communication and exposure; however, the internet isn't required for the public to have knowledge of state/federal programs/policies/laws. Those are all a matter of public record. Before the internet, I sent a written request for information regarding proposed/enacted federal documents. There was also the telephone and snail mail. Also, I think the public was aware of the income tax, sideline taxes, and the elimination of the gold and silver standard before the internet. Again, by and large, the citizenry chose not to take the action that is required of them if they wish to maintain liberty.