control!?
HA!
States go insane over the fact internet avoids their sales taxes.
30% is a HUGE incentive to find EASY means to avoid a tax.
Only “little people” pay taxes. especially a 30% sales tax.
Thanks for setting me straight on this one. I’m so glad that there’s no fraud in the current income tax system.
Under the FT, the states will still cry and whine over internet sales. The FT has nothing to do with State or Local taxes, as you likely are aware.
So, what’s your real concern with the FT? The system we have in place sure ain’t working like most think it should. Do you have an alternative solution?
Taxing income is regressive, especially a graduated income tax model in which higher rates apply to higher income. Taxing consumption (the FT, for instance) provides a degree of control over when/where to pay the tax. If you don’t want to pay the tax, don’t make the purchase.
As a supporter of the FT, it’s my opinion that it would be a better model than the current one; lower compliance costs, more personal control, and I don’t have to tell the government how much I made, where I made it, and how much of it I saved/spent.
OTOH, I don’t care for the prebate concept. I’d rather see a slightly lower FT rate and no prebate to fool with. I see the prebate as a tool to infiltrate my privacy, again. I also don’t agree with the interest rate index outlined in the legislation. I can accept using the T-bill rate, but I think that should be just one component of the broader process of setting the limit, beyond which the FT would apply to the interest paid.
In short, there is still work to be done on the FT model, but even in its current form, it’s light years ahead of the BS system we are working with at present. And, regardless of the system in play...TAX reform without SPENDING reform is a task half done.