CAVUTO REPORTS THAT BUSH CONSIDERING SCRAPPING THE IRS CODE!!!

Fox News Channel | November 6, 2002 | n/a

[PhilipFreneau]

A "national retail sales tax" is not constitutional, neither is a "flat tax."

You are kidding, right? Both are Constitutional. The 16th Amendment reads: "The Congress shall have power to lay and collect taxes on income, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." There is nothing that requires the "tax on income" be deducted in a paticular manner. A sales tax is a tax on income, as is a flat tax.

[hchutch]

I'd only favor that is we first dealt with the 16th Amendment. Otherwise, we end up with BOTH an income tax and sales tax. If the 16th Amendment is repealed (we need 67 Senators and 290 Representatives to do that), I'm for it. But not until that point.

OTOH, a FLAT income tax with personal exemptions, the mortgage-interest deduction, and a 401(k) exemption would be a lot easier to get passed, and we do NOT have the higher hurdle of dealing with the Amendment process. It's a good short-term compromise - and we can always work towards repealing the 16th Amendment. But if the 16th Amendment isn't repealed and we get a sales tax, we're in trouble if the Left gets in.

The other big thing, IMO, is to COMPLETELY erase corporate taxation, and make this country a much less hostile business climate. Businesses produce productive jobs - we need to do everything to encourage them to come here. That HAS to be part of any tax reform package.

[Bonaparte]

"Still sure this is what you want?"

No matter what system is in place, there will always be 1) evasion, 2) a system of enforcement. In addition, the federal government cannot exist without some source of revenue. So we have to pick one, and RST is an improvement over the income tax.

[Naspino]

They'll still have to do audits, but since everything is more transparent they can really pick out the bad apples easily without having to spend a year going through their tax return.

The audits won't be on consumers though -- on business owners -- who shouldn't be in business if they cannot support the country that makes them profitable.

[Petronski]

As someone who works in income tax preparation during the winter, I say SCRAP IT. But be sure to repeal the 16th, or we'll end up with the new National Sales Tax, PLUS a new income tax the next time the libs take power.

[Phantom Lord]

I can just see liberal heads across the land exploding with rage that such an idea would be given a serious float.

[Terriergal]

BUSH CONSIDERING SCRAPPING THE IRS CODE!!!

OH IF ONLY!!!

[GovernmentShrinker]

Wheeeeeeeeeeeeee! Dubya will earn himself a whole chapter in the history books if he pulls this off! Sounds like he's energized by the election results; really believes he can get important stuff done now. Awesome! Let's get energized ourselves and help make it happen.

[Ditto]

Go to www.fairtax.org and read. What we are talking about IS NOT A VAT (value added) tax. It is a National Retail Sales Tax. It is charged only once in the supply chain --- at the point of final consumption.

[Terriergal]

Can it be possible?!?

[anniegetyourgun]

I saw it the first time around and it was just a throw away hook....which Daniels didn't bite on. I wouldn't get too excited yet.

[hchutch]

At this point, a flat tax is a far better idea. We don't know when we will have the votes needed for the repeal of the 16th Amendment. We do know we are very close, if not at, the level needed to get good tax reform passed RIGHT NOW.

[Naspino]

"The Congress shall have power to lay and collect taxes on income, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

Should point out too -- that to argue against the DNC -- that they have the power and are not required to do it one way or the other. I imagine the DNC will have talking heads come out and tell Americans that its impossible because the constitution "requires" income tax collection.

[Terriergal]

The very thought of abolishing the tax code gives me happy chills and good goosebumps!!!

[babygene]

The big advantage if a national sales tax is that it taxes goods imported into the country the same as it taxes localy produced products. In that sense, and to that extent it is a tarif.

This would make it a lot less atractive for U.S, manafactures to take manafacturing off-shore.

IMHO this would be a good thing.

A flat tax does not have the same effect...

[Steven W.]

** NOT NEWS ***

For months before the election Paul O'Neill repeatedly said this was going to be on the agenda he was helping Bush prepare for presentation after the election.

[lelio]

Imagine the number of trees that could be saved by scrapping the current paperwork requirements.....
In addition to this appeasing Nader just based on the tree issue, you can sell him the additional efficiency side of things. If I don't have to spend an hour every week trying to reconcile my books just for tax reasons I can keep my store open longer / work for an enviromentalist cause / donate money to charity / etc.
I believe that if you can also frame this in a government make work project you'll get some more converts.

[Tree of Liberty]

I saw Daniels as really trying to not say anything regarding a tax code re-write since the plan is still in an embryonic stage.

[imperium in imperio]

The NSRT may not be constitutional, but neither is the income tax and the courts haven't overturned it.

I don't quite understand either of this. Would a sales tax be like an uber-excise tax? And doesn't the 16th Amendment specificaly say income taxes are OK? Now, I disagree with pretty much every aobut an income tax, but how is it not constitutional?

[BaghdadBarney]

That's why a FLAT INCOME tax makes more sense. Repealing the 16th Amendment will take forever and a day. At the end of the day, a postcard tax return for individuals and corporations, along with putting the H&R Block folks (which are nothing but proxy government employees) out of work is THE goal as far as I am concerned...