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Imposing a national 'fair' tax
MarketPlace ^
| September 11, 2007
| Scott Jagow/Stephen Moore
Posted on 09/12/2007 4:17:22 AM PDT by Man50D
TEXT OF COMMENTARY
Scott Jagow: The mother of all hearings wraps up today. That's how Congressman Charles Rangel described his four-day hearing on taxation. It covered the gamut from middle-class taxes to taxing private equity. But commentator Stephen Moore says Congress should really consider what he calls the "fair tax."
--------------------------------------------------------------------------------
Stephen Moore: We could abolish the income tax and the payroll tax, too, and replace them with a 23 percent national sales tax. All taxes would be paid at the cash register when you buy a grape slurpee or a Honda Civic.
This "fair tax" would instantly banish 8 billion pages of paperwork, and the more than 12,000 IRS agents who snoop on all our financial transactions. Economists from Harvard and MIT have verified that this plan wouldn't swell the budget deficit and would increase American jobs.
The United States would instantly become a global magnet for new investment and businesses, and those Benedict Arnold companies that have fled America in search of lower taxes would be back on the next 747. Under the fair tax, we'd finally do what other nations do: we'd tax imports, but not our exports.
We would no longer tax Americans on what they earn and save, only on what they consume. So, for the average worker, every penny they earn, they would get to keep. Take-home pay would increase by more than 20 percent under the fair tax. Seniors would still get their Social Security checks, now paid for out of sales tax collections.
Oh, but wouldn't a national sales tax be regressive and hurt the poor? Nope -- under the fair tax, every American family of four would be able to purchase the first $20,000 of goods and services every year tax-free.
What better way to clean up the swamp of corruption and sweetheart deals in Washington than by terminating the IRS tax code? This is supposed to be a government of, by and for the people -- not the tax lobbyists and special interest groups in Washington. So let's promote growth with equity through the fair tax.
Jagow: Stephen Moore is a member of the editorial board at the Wall Street Journal. In Los Angeles, I'm Scott Jagow. Thanks for listening, hope you enjoy your day.
TOPICS: News/Current Events
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To: MrB
Aaaaah! That’s brilliant!
To: navyguy
Maybe if the Fair Tax National Organization picks ONE STATE, and proves it out, will they then have momentum at the national level. What do you want to bet that state's retail sales take a nose dive while sales in neighboring states go up?
42
posted on
09/12/2007 5:26:16 PM PDT
by
lucysmom
To: Man50D
I like your ambition, but there are literally millions of Americans earning a salary that deals with circumventing or working with the tax code, from accountants or accounting firms, to lawyers and law firms, to bank trustees, not to mention federal and state workers. Unfortunately, you can “grass roots” your ass off and I don’t think you’ll ever get Congress to agree with the stroke of a pen to do away with all their jobs. Congressmen will never agree to fire people who elect them and that is what a fair tax would do.
To: Centurion2000
If it's good enough for God, it's more than good enough for the government. God doesn't buy tanks or fund weapons research.
44
posted on
09/12/2007 5:30:35 PM PDT
by
lucysmom
To: irish guard
Unfortunately, you can grass roots your ass off and I dont think youll ever get Congress to agree with the stroke of a pen to do away with all their jobs.
Many people had the same skepticism about granting women the right to vote but a strong grassroots effort resulted in the 19th Amendment. Politicians will agree when they realize mounting pressure will force them to choose between self preservation for their jobs and supporting special interest groups.
45
posted on
09/12/2007 5:36:54 PM PDT
by
Man50D
(Fair Tax, you earn it, you keep it!)
To: groanup
The Fair Tax babes. Three more reasons to love The Fair Tax! ;O)
46
posted on
09/12/2007 5:38:31 PM PDT
by
Man50D
(Fair Tax, you earn it, you keep it!)
To: lucysmom
What do you want to bet that state's retail sales take a nose dive while sales in neighboring states go up?I think you are full of bull as usual.
The economy of Texas is a dominant force in the economy of the United States. One of the largest growing economies in the nation, Texas is, as of 2006, home to six of the top 50 companies on the Fortune 500 list and 56 overall, more than any other state. Texas has an economy that is the second largest in the nation and the 15th largest in the world based on GDP (PPP) figures. As the largest exporter of goods in the United States, Texas currently grosses more than 100 billion dollars a year in trade with other nations.
And one of the MAIN reasons for that is that Texas is one of the eight states of the United States with no state income tax. In addition, Texas does not allow cities to impose income taxes above and beyond the federal level. This means that for the residents of Texas the maximum rate of income taxation cannot exceed 35.0%, all of which goes to the national government.
Economy of Texas
Texas has a retail sales tax.
47
posted on
09/12/2007 5:46:31 PM PDT
by
Bigun
(IRS sucks @getridof it.com)
To: Bigun
Texas has a retail sales tax.
Darn you Bigun! Stop presenting the facts!
48
posted on
09/12/2007 5:53:22 PM PDT
by
Man50D
(Fair Tax, you earn it, you keep it!)
To: Man50D
Darn you Bigun! Stop presenting the facts!LOL! NEVER!!!
"Facts are stubborn things; and whatever may be our wishes, our inclination, or the dictates of our passions, they cannot alter the state of facts and evidence."
John Adams
49
posted on
09/12/2007 6:03:31 PM PDT
by
Bigun
(IRS sucks @getridof it.com)
To: Man50D
This one's for you my friend.
It is not the critic who counts, not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who errs, and comes short again and again (but)....who knows the great enthusiasms, the great emotions, who spends himself in a worthy cause; who at best knows in the end the triumph of high achievement, and who at the worst if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory or defeat."
Theodore Roosevelt (1910)
50
posted on
09/12/2007 6:11:26 PM PDT
by
Bigun
(IRS sucks @getridof it.com)
To: Bigun
...if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory or defeat." Why do I equate the last sentence here with the statist mentality that change is something to be afraid of? That such paranoia is spelled SQL?
51
posted on
09/12/2007 6:49:50 PM PDT
by
groanup
(Limited government is the answer. What's the question?)
To: Bigun
I think you missed the point.
52
posted on
09/12/2007 9:59:32 PM PDT
by
lucysmom
To: Man50D
Darn you Bigun! Stop presenting the facts! Sales taxes make up 25% of state revenue, where does the rest of the money come from?
53
posted on
09/12/2007 10:03:57 PM PDT
by
lucysmom
To: lucysmom
Texas Taxes and Tax Rates
The chart below provides a quick overview of tax rates for all taxes administered by the Comptroller. You can find detailed information such as forms, publications, statutes, rules and more on any of these taxes by clicking the tax type in the chart.
Tax |
Rate |
911 Emergency Service Fee |
$0.50 per month for each local exchange access line or equivalent local exchange access line |
911 Wireless Emergency Service Fee |
$0.50 per month for each wireless telecommunications connection |
911 Equalization Charge |
1% of the customer's intrastate long-distance charges each month |
Automobile Theft Prevention Authority Assessment |
$1 per motor vehicle year |
Automotive Oil Sales Fee |
$0.01 per quart of automotive oil imported or sold in Texas |
Battery Sales Fee |
$2 per battery of less than 12 volts. $3 per battery with a capacity of 12 volts or more |
Boat and Boat Motor |
6 1/4% (.0625) of sales price less trade in allowance |
Cement Production Tax |
$0.55 per ton or $0.0275 for each 100 pounds or fraction of 100 pounds of taxable cement |
Cigarette Tax |
For a conventional package of 20 cigarettes, the tax is $1.41 cents per pack. For a package of 25 cigarettes, the tax is $1.76 cents per pack |
Cigar and Tobacco Products Tax |
Cigars
- one cent per 10 or fraction of 10 on cigars weighing three pounds or less per thousand;
- $7.50 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for 3.3 cents or less each;
- $11 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain no substantial amount of non-tobacco ingredients; and
- $15 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain a substantial amount of non-tobacco ingredients.
Other Tobacco Products (smoking or pipe tobacco, chewing tobacco, snuff)
- 40 percent of the manufacturer's list price, exclusive of any trade discount, special discount, or deal.
|
Cigarette and Tobacco Products Outdoor Advertising Fee |
10% (.10) of the gross sales price of any outdoor advertising of cigarettes or tobacco products in Texas |
Coastal Protection Fee |
$0.02 per barrel of crude oil or condensate |
Coin Operated Machines Tax |
Registration certificate: $150; occupation tax permit: $60; general business license: $200 for 50 or fewer machines, $400 for 51-200 machines, $500 for 201 or more machines; import license: $500; repair license: $50 |
Controlled Substances Tax |
Marihuana: $3.50 per gram, 4 oz. minimum; Other Substances: $200 per gram, 7 g. minimum; $2000 per 50 dosage units, 50 minimum, 50 unit increment |
Crude Oil Production Tax |
Oil production tax: 4.6% (.046) of market value of oil |
Diesel Fuel |
$0.20 per gallon of diesel fuel |
Fireworks Tax |
2% (in addition to sales tax) |
Franchise (Corporate and Bank) |
Greater of .25% (.0025) per year of privilege period of net taxable capital or 4.5% (.0450) of net taxable earned surplus. For the initial report, the net taxable capital rate is prorated over the initial period |
Gasoline |
$0.20 per gallon of gasoline |
Hotel Occupancy Tax |
6% (.06) of the cost of a room |
Inheritance Tax |
Texas portion of the maximum allowed federal credit for state death tax |
Insurance Maintenance Tax |
Varies each year as adopted by the Texas Department of Insurance and the Texas Workers' Compensation Commission |
Insurance Premium Tax (Independently procured, Surplus Lines and Unauthorized) |
4.85% (.0485) of taxable premiums |
Insurance Premium Tax (Licensed Insurers) |
Life, Accident and Health insurers: 1.75% (.0175) Property and Casualty insurers: 1.6% (.016) Reciprocal or Interinsurance Exchanges: 1.7% (.017) Title insurers: 1.35% (.0135) |
International Fuels Tax Agreement |
Tax rate is set by each of the member jurisdictions. Interstate carriers based in Texas report fuel tax paid in all member jurisdictions |
Liquefied Gas Tax |
$0.15 per gallon; Prepaid users: based on mileage and registered gross weight of vehicle |
Loan Administration Fee |
$0.50 of each administrative fee charged for a secondary mortgage loan; $1 of each administrative fee charged for a non-real property loan |
Manufactured Housing Sales and Use Tax |
5% of 65% or .0325 of the sales price stated on invoice |
Miscellaneous Gross Receipts Tax |
Percentage of gross receipts from business done in incorporated cities and towns, according to population:
- 1,000 to 2,499 = .581% (.00581)
- 2,500 to 9,999 = 1.07% (.0107)
- 10,000 or more = 1.997% (.01997)
|
Mixed Beverage Tax |
14% (.14) of gross receipts |
Motor Vehicle Gross Rental Receipts |
10% (for contracts of 1-30 days) of gross receipts, less discount and separately stated fees for insurance, fuel, and damage assessments. 6 1/4% (.0625) for contracts exceeding 30 days but no longer than 180 days |
Motor Vehicle Sales and Use Tax |
6 1/4% (.0625) of sales price less trade in allowance |
Motor Vehicle Seller-Financed Sales Tax |
6 1/4 % (.0625) of gross receipts |
Motor Vehicle Registration Surcharge |
10% of the total fees due for the registration of the truck-tractor or commercial motor vehicles |
Motor Vehicle Surcharge |
The rate for model years 1996 and earlier is 2.5 percent of the total consideration paid for the vehicle, while the rate for model years 1997 and later is 1 percent |
Natural Gas Production Tax |
Gas: 7.5% (.075) of market value of gas. Condensate Production Tax: 4.6% (.046) of market value of gas |
Office of Public Insurance Counsel Assessment |
Property and Casualty insurers: $.057 per policy in force at year end Life, Accident, and Health insurers: $.057 per initial policy or certificate of coverage placed in force during the year Health Maintenance Organizations: $.057 per initial policy or certificate of coverage placed in force during the year Title insurers: $.057 per new owner policy written during the calendar year |
Oil Well Service Tax |
2.42% (.0242) of taxable services |
Oyster Sales Fee |
$1 per 300 pound barrel of oysters taken from Texas waters |
Pari-Mutuel Tax |
Horse and Greyhound 1% for live pools in excess of $100 million but less than $200 million 2% for live pools in excess of $200 million but less than $300 million 3% for live pools in excess of $300 million but less than $400 million 4% for live pools in excess of $400 million but less than $500 million 5% for live pools in excess of $500 million
1% for simulcast pools (same species and cross species) |
Petroleum Products Delivery Fee |
Varies according to the net total gallons of all petroleum products withdrawn: $10.00: Less than 2,500 $20.00: 2,500 but less than 5,000 $30.00: 5,000 but less than 8,000 $40.00: 8,000 but less than 10,000 $20.00: Each 5,000 gallon increment on 10,000 gallons or more
|
Public Utility Gross Receipts Assessment |
1/6 of 1% (.001667) of gross receipts from rates charged to the ultimate customers in Texas |
Retail Charge Account Delinquency Fee |
$0.50 for each delinquency charge in excess of $10 |
Retaliatory Tax |
If the aggregate tax, assessment, and fee burden of another state exceeds the aggregate burden in Texas based on the same amount of premium writings, a retaliatory tax is imposed equal to the difference between the states |
Sales and Use Tax |
State - 6 1/4% (.0625) City - 1% (.01) - 2% (.02), depending on local rate. County - 1/2% (.005) - 1.5% (.015), depending on local rate. Transit - 1/4 % (.0025) - 1% (.01), depending on local rate. Special Purpose Districts - 1/8% (.00125) - 2% (.02), depending on local rate |
School Fund Benefit Fee |
.04875 per gallon |
Sulphur Production Tax |
$1.03 per long ton of sulphur produced |
Texas Emissions Reduction Plan Surcharge |
2% (in addition to sales tax) on the sales or lease price of off-road, heavy duty diesel equipment |
Telecommunications Infrastructure Fund |
1.25% (.0125) of receipts from taxable telecommunications services that are subject to sales tax |
Volunteer Fire Department Assistance Fund Assessment |
Rate is set based on the premium volume each year to generate $15 million in revenue |
54
posted on
09/13/2007 12:37:43 AM PDT
by
lewislynn
(What does the global warming movement and the Fairtax movement have in common? Disinformation)
To: Man50D
There is a big difference at being able to block something that because of the ridiculous senate rules needs 60 votes, and actually implementing affirmative legislation like the fair tax. The procedural rules in the senate allow a minority to defeat the will of the majority. Probably the most ridiculous senate rule is where a single senator can put an indefinite hold on an appointment made by the executive branch. It’s beyond insane. Until we get rid of most of the ass monkeys currently residing in the senate don’t expect any progress on the fair tax. Don’t get me wrong — I would love to see the fair tax implemented. Thanks for the link about the 6 republican candidates - I stand corrected.
To: lucysmom
If it's good enough for God, it's more than good enough for the government. God doesn't buy tanks or fund weapons research.
You do realize that entitlements are SEVENTY percent of federal outlays correct?
56
posted on
09/13/2007 7:43:58 AM PDT
by
Centurion2000
(“Jesus Saves. Moses Delivers. Cthulu Reposesses...”)
To: lewislynn
I wonder if Texans are aware everytime they pay a tax. For instance, is the cement tax, as a percent of the purchase price, disclosed when a new home is sold? What about transportation taxes?
I notice that a significant portion of Texas' state revenue is received from the federal government (income taxes). How much of that is due to political favors won by Texas's Washington politicians (pork)?
57
posted on
09/13/2007 8:05:23 AM PDT
by
lucysmom
To: Centurion2000
You do realize that entitlements are SEVENTY percent of federal outlays correct? How does that work? Military spending is 28.5% of the budget (exclusive of veteran's benefits) and interest on the debt is 18.7% of the budget so those three things add up to 117.2%.
58
posted on
09/13/2007 8:17:45 AM PDT
by
lucysmom
To: Bigun
What is conservatism?
Abraham Lincoln asked, "What is conservatism?
Is it not adherence to the old and tried, against the new and untried?" "Activism is the antithesis of conservatism"
59
posted on
09/13/2007 8:49:22 AM PDT
by
xcamel
(FDT/2008 -- talk about it >> irc://irc.freenode.net/fredthompson)
To: Man50D
Fair tax is like jumbo shrimp. It’s a classic oxymoron.
60
posted on
09/13/2007 8:51:32 AM PDT
by
OB1kNOb
(Support Duncan Hunter for the 2008 GOP presidential nominee. He is THE conservative candidate!!)
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