Posted on 11/20/2007 10:39:21 AM PST by Hydroshock
A U.S. Treasury report on ways to cut corporate taxes will include discussion of a national sales tax, a senior Treasury official told CNBC.
The U.S. currently has no national sales tax, also known as a value added tax, or VAT, though many states do. The tax would be one option to help offset revenue lost from lowering corporate taxes. The report is due in the coming weeks.
The top corporate tax rate is now 35 percent, and the official said that if exemptions are eliminated, a 27 percent rate would be revenue-neutral.
Besides a national sales tax, the Treasury report will also discuss accelerating depreciation and expensing, to as much 35 percent of the value of new investments in the first year.
The Treasury official said the document would make no choice as to the best option, but would note that the "best bang for the buck" for growing the economy will come from accelerated expensing.
The Treasury document is partly an attempt to counter a proposal by Charles Rangel, the Democratic chairman of the House Ways and Means Committee, to cut the corporate rate to 30.5 percent from 35 percent. Rangel’s bill contains proposals to offset his tax cuts with the elimination of special tax breaks for corporations.
(Excerpt) Read more at cnbc.com ...
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Next they’ll tax air.
I want off the discussion of a sales tax for the rest of my lifetime.
Flat tax fine.
National Sales Tax is a scam through and through. It will never end and just makes it easier for government to increase taxes further.
Want another 100 billion. Just increase one tax. Done.
Sheeesssshhhhh..........
Uh, that would be ON TOP OF the income tax we already pay? No doubt. When did they put Gov. O’Malley of Maryland in charge of the Treasury?
Actually, the experience here in Canada has been that the sales tax is the most difficult to increase because it’s so visible. Corporate and payroll taxes are the easiest to hike because most voters don’t notice, but add a penny to the sales tax and EVERYONE notices.
As much as I’d like to get rid of O’Malley...making him Secretary of the Treasury is not the way to do it!
National Sales Tax....call me homeless.
Further proof that the whole “Fair Tax” is something dreamed up by the Scientologists (or the guy that wrote “The Wizard of Oz”). National Sales Taxes are ALWAYS levied on top of existing taxes.
A Flat Tax is the way to go. Unlike this “Fair Tax” it actually has a successful track record in over 30 countries so far. Beginning with Hong Kong in the ‘fifties and now spreading over the countries of Eastern Europe and the former Soviet Union.
String the bastards up.
Sounds like a fair tax.
News to me.
A sales tax, on top of the income tax? No.
Not just no, but hell no!
I am sure Mrs. Clinton has noticed the efficacy of his efforts to separate the citizenry from their hard-earned cash.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
They can discuss it until they are blue in the face. Anyone voting for this will end their career in politics.
Idiots.
What is it about ‘Republican and Conservative’ do they not understand?
“Actually, the experience here in Canada has been that the sales tax is the most difficult to increase because it’s so visible. Corporate and payroll taxes are the easiest to hike because most voters don’t notice, but add a penny to the sales tax and EVERYONE notices.”
That’s my point actually. Taxation won’t end there. It will merely be another tool of taxation among taxes. And I refuse to allow anyone to convince me otherwise because you and our neighbors to the north are the finest example.
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