You missed my point. My corporations will buy and sell everything I need, except for food. Everyone will do the same thing. REIT's will own the Real Estate, Transportation will all be leased, etc. etc. The only people who will pay taxes are the poor and theirs will be rebated back to them. The Government will get almost zero revenue. That is why the VAT taxes the goods as they are produced.
I don't know whether to laugh or cry considering you fail to understand the people are the government. They have the power to dictate to their politicians how they want their government run. Unfortunately apathy has allowed the income tax to evolve into a tool used more for controlling people than collecting taxes. Americans For Fair Taxation understand this concept and are consequently forming an increasingly strong grassroots effort forcing Congress critters to realize they either support fundamental tax reform with The Fair Tax or risk losing their jobs in upcoming elections.
Yes people dictate to their representatives how they want things run and they want handouts! It is only apathy from the taxpayers, the recipients aren't apathetic at all. The Congress Critters know that they won't get re elected if they don't bring home the bacon.
The income tax is precisely the problem. I find it curious you oppose the Fair Tax but fail to offer an alternative. The only reasonable explanation is you are in favor of maintaining the status quo income tax code. The question then becomes what advantages do you feel the income tax has over The Fair Tax?
I actually have a ton of alternatives once government spending is under control. Would you believe that if government spending was less than 10% of the GDP that Federal Taxation would not be necessary? If we could constitutionally limit Government spending and borrowing the problem becomes very easy to solve. It is when the Government taxes and spends the majority of the GDP that we have problems. No tax system will survive that kind of stress for long.
The income tax is precisely the problem. I find it curious you oppose the Fair Tax but fail to offer an alternative. The only reasonable explanation is you are in favor of maintaining the status quo income tax code. The question then becomes what advantages do you feel the income tax has over The Fair Tax?
I only oppose the Fair Tax because I see it becoming an additional tax. The income tax when it was originally implemented was not a burdensome tax. It was only for the wealthy and they paid a very tiny percent of their income.
I propose that the solution is to limit Government spending to 5% of the GDP. Once that is accomplished the fair tax would be great : )