Fred Thompson answers "The Question"!(Supports The Fair Tax)

Americans For Fair Taxation ^ | July 25, 2007

[Man50D]

Former Senator Fred Thompson came to Houston to attend a fundraiser as he considers throwing his hat into the ring for the 2008 presidential primaries. A small rally was held at the airport for his arrival, and FairTax supporters were out in some force.

FairTax.org is determined to put the FairTax on the national agenda during this election cycle, and to that end, supporters are asking each candidate and potential candidate "The Question": "If Congress passed the FairTax Act and you were President, would you sign the bill into law?" Despite an enormous amount of jostling from the crowd and media people, we were able to get his answer on videotape. Click here to watch the video.

To see where the other candidates stand on the FairTax, click here to go to the Presidential Candidates' Scorecard.

[bannie]

I wonder if Fred’s losing his eager following by holding back on his announcement.

[Man50D]

All well and good, but what about the 16th Amendment? Without repeal we still have that monster lurking over us and I feel as though the NRST would just become another layer in the federal leviathan.

HJR 16 currently before the House will repeal the 16th Amendment. Americans For Fair Taxation will work to concurrently push it through Congress for ratification by the states.

[Libertina]

Thanks for posting... The government should not demand more than God asks for...

[lewislynn]

Here is a serious question:

If the IRS is abolished, what kind of information could we use to verify income for things like mortgage loan applications? If you’re an employee...you wouldn’t need a W2 anymore.

And if you’re self-employed...what do you show?

I guess "the book" that got all these Fairtax supporters salivating doesn't have that answer. Maybe because the author of "the book" never read the Fairtax bill.

I have and here's your answer from their very own bill (which most of them never read)

`SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY ADMINISTRATION.

`(a) In General- Employers shall submit such information to the Social Security Administration as is required by the Social Security Administration to calculate Social Security benefits under title II of the Social Security Act, including wages paid, in a form prescribed by the Secretary. A copy of the employer submission to the Social Security Administration relating to each employee shall be provided to each employee by the employer.

`(b) Wages- For purposes of this section, the term `wages' means all cash remuneration for employment (including tips to an employee by third parties provided that the employer or employee maintains records documenting such tips) including self-employment income; except that such term shall not include--

`(1) any insurance benefits received (including death benefits);

`(2) pension or annuity benefits received;

`(3) tips received by an employee over $5,000 per year; and

`(4) benefits received under a government entitlement program (including Social Security benefits and unemployment compensation benefits).

`(c) Self-Employment Income- For purposes of subsection (b), the term `self-employment income' means gross payments received for taxable property or services minus the sum of--

`(1) gross payments made for taxable property or services (without regard to whether tax was paid pursuant to section 101 on such taxable property or services), and

`(2) wages paid by the self-employed person to employees of the self-employed person.

It's interesting how selective the Fairtax supporters are about giving out information.

[Turret Gunner A20]

re: #26

No way in heck will I approve of a 30% tax on everything I have saved.

Where do you see that in the FairTax proposal?

[counterpunch]

And this would greatly increase the taxes at the time of purchase, right? So anyways, that’s not an answer to my question, nor is it acceptable. I don’t think we need to raise the taxes of old people living on savings and fixed incomes.

My idea would be essentially a “tax free card” that could be scanned at the time of purchase issued to people who qualify. Of course you run into a problem that such a program could be abused to avoid taxes (like taking your grandparents shopping with you), and also abused by government to expand the qualifications to low income people, until only half of Americans or less have to pay federal tax, which would put us right back where we are today. A solution for that would be to phase the exemption program out completely, since the next generation of old people would be spending savings not taxed when they earned it. But of course government has a very poor record with sunsetting.

If the transitional double taxation issue could be solved, then it would be the best system of taxation, making sure trust-funders pay their share, and it would go a long way to solve our personal debt problems in this country, since it would greatly encourage savings.

[lewislynn]

I would gladly pay 25% tax at the register to be done with the IRS and current tax codes. It would be a large break for me, as I am one of the “rich” that keeps getting soaked. I could also control the amount of tax I paid by how much I spent.

(Yes I make a decent income, and no Bill Gates has no competition from me. Solidly stuck in the professional income range and I figure my marginal tax rate is around 50%) And no, I am not in the highest tax bracket.

You would pay 30% at the register and if the "MD" means what I think it does, in addition to the 30% tax you'd pay at the register you would have to remit 23% of your gross every month for your service... But you say you already pay 50% so maybe you wouldn't mind.

`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 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.

`(2) FOR YEARS AFTER 2007- For years after the calendar year 2007, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service.

`(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--

`(A) the general revenue rate (as defined in paragraph (4), and

`(B) the old-age, survivors and disability insurance rate, and

`(C) the hospital insurance rate.

`(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.

Fairtax supporters would like to tell you they say the rate is inclusive so it can be compared to the income tax. The truth is the rate is written for the business that collects and remits the tax.

Notice the "of the gross payments"? If a business has to remit 23% of it's gross they would have to collect 30% ON the sale.

$100 shelf price + $30.00 tax = $130.00...$30.00 is 23% of $130 (gross payment)

If you truly are a MD and you know you no longer pay income tax but instead pay 23% of your gross and 30% sales tax from what's left, how much will you be reducing your gross income to offset the income tax you no longer pay?

[Man50D]

Your response to my statement the Flat Tax retains the is

IRS No it doesn't.

There are four Flat Tax related bills before Congress:

H.R. 1040-Freedom Flat Tax. "To amend the Internal Revenue Code of 1986 to provide taxpayers a flat tax alternative to the current income tax system.

S.1081-Flat Tax Act of 2007. Section 1 paragragh C "Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

S.1040-Tax Simplificatin Act. Section 101 a " In General- Section 1 of the Internal Revenue Code of 1986 is amended to read as follows:"

S.1111-Fair Flat Tax Act Of 2007.- Section 2 "The purpose of this Act is to amend the Internal Revenue Code of 1986--"

These four bill only amend the IRS code but do not abolish the IRS contrary to your statement.

The Flat Tax can be filed on a single sheet of paper.

The Fair Tax doesn't require the taxpayer to file any paperwork because the tax is collected at the point of sale.

The IRS would be downsized drastically.

By your own admission you confirm The Flat Tax retains the IRS by saying it will be downsized which contradicts your earlier statement "no it doesn't" when responding to my stating The Flat Tax retains the IRS. The four Flat Tax bills do not state how much the IRS will be downsized.

[Turret Gunner A20]

ree: #44

Please check this out, go to the FAQ section and read the answer to #38.

[Turret Gunner A20]

re: # 46

What do you use now? What has IRS got to do with it?

[RockinRight]

For someone employed, a W2 - which is only issued for the IRS.

For self-employed, income tax returns (1040’s) WHICH will no longer exist!

[Man50D]

I wonder if Fred’s losing his eager following by holding back on his announcement.

That becomes increasingly likely as time passes.

[Turret Gunner A20]

re;69

Sorry. Either I goofed or my computer did. It should read :

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

Abolishes the IRS
Closes all loopholes and brings fairness to taxation
Ensures Social Security and Medicare funding
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheck

We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore!

http://www.fairtax.org/site/PageServer?pagename=about_main

Check out the Frequently Asked Questions section :

http://www.fairtax.org/site/PageServer?pagename=about_faq

[counterpunch]

I wonder if Fred’s losing his eager following by holding back on his announcement.

That becomes increasingly likely as time passes.

I think Fred's honeymoon is starting to end - before he's even said "I do."
However, that's about it, and it would be over whether he formally announces or not. I think we'd all like to see him out there talking about the issues and taking positions, but that is going to happen before any of us cast a ballot. So where is his support going to go? It's going to just dry up and move on, never to return?

By November, none of that will matter. People make new assessments every day, and they can (and do) change their mind right up until they cast their vote. Whether or not people are getting impatient with Fred today will have no bearing on who they vote for next year.

 

[Hostage]

Ok, I see what you are up to. You asked the question innocently enough in post #57 and then you revealed yourself in post # 66.

You are nothing but a troll that is promulgating the lie about savings. We have seen it numerous times here before.

As I pointed out in my post #60, you always pay embedded federal taxes on products that will be replaced under the FairTax.

Here's you sucker post #57:

I like the idea of the Fair Tax, especially if it is used in a way that makes legitimate food, rent, and real estate tax free.

I don’t know all of the details, so perhaps someone has an answer to my #1 concern about it. People who have saved money already paid tax on their savings when they earned it. How would the Fair Tax avoid taxing savings twice, particularly for people like my parents, whom are both retired and live off of their savings?

We sound so innocent don't we? Well it doesn't matter, any reader will see the deceptiveness of your posts.

Do us a favor and tell your basher boss he didn't train you well in the art of deception.

They must be short-staffed, they have to send the third string in.

[Jim Robinson]

Woo hoo!! Run, FRed, Run!!

Repeal the 16th!! Abolish the income tax!!

[Hostage]

I am not sure what video you looked at but the one I saw shows clearly FDT answered the FairTax fellow “Yeah, absolutely!” to the question “if Congress passed the FairTax would you sign it into law?”. After FDT answered yes, the FairTax fellow said “Fantastic!”

That was unequivocal.

As to your assertion that Fred hadn’t heard of the FairTax until recently, I find that extremely hard to believe as one of his closest friends and advisors Congressman Wamp is one of the sponsors of the FairTax bill in Congress, HR 25.

[lonestar]

FLAT TAX is....17% income tax...everyone, no loopholes.

Drug dealers file income tax returns????

[counterpunch]

You are paranoid and probably mentally unstable.
I asked a question hoping to get an intelligent response.
You failed, so I’m hoping a more qualified person could give it to me.

It sounds like you are incapable of defending what you believe in, so you attack anyone who questions it.
I believe there is an answer to my question, but you are not one who has it. I’m sure there are plenty of people here who have the knowledge, intelligence, and mental stability to answer, so please, step aside and let one of them speak.

Your answer is a non-answer. It matters little if there are hidden federal taxes. That wasn’t the question. The question is what is the plan to mitigate the burden placed on people living off of savings that the new taxes will place on top of the existing taxes, resulting in increased cost at the point of sale. I’m sure there is an answer to this question, and I’m even willing to bet it’s a pretty good one. It’s just one you don’t happen to have yourself.

[Extremely Extreme Extremist]

By your own admission you confirm The Flat Tax retains the IRS by saying it will be downsized which contradicts your earlier statement "no it doesn't" when responding to my stating The Flat Tax retains the IRS. The four Flat Tax bills do not state how much the IRS will be downsized.

Please re-read what I wrote.

I never said the IRS would be eliminated, only drastically reduced in power if a flat-tax was enacted.

Even with a Fairtax, the IRS will still exist in one scope or another. Who's going to collect the revenues?