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

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

[Tree of Liberty]

Neil Cavuto just interviewed Mitchell E. Daniels, Jr., the director of the OMB, and Neil let it be known that he's hearing rumblings that Pres. Bush is considering a total re-write of the tax code and that SecTreas O'Neill is strongly pushing a national retail sales tax!

[not-an-ostrich]

What about taxes paid by business?

[Route66]

"Only a small amount of imagination needed: imagine I pull up behind a truck at the side of the road in a rural area. The truck contains merchandise that was bought wholesale maybe right even on the dock in L.A. What will stop me from buying and not paying the sales tax?"

Unless the goods are smuggled in or you are dealing with someone selling stolen goods, you will have to purchase from a legitimate company. All our suppliers require our tax ID numbers before selling us goods for resale. You sign a form declaring they are for resale and that you will collect required taxes when you sell them.

I you never send in any taxes and you buy goods wholesale, they will come looking for you.

[William Terrell]

Zon, do you realize that if the so-called Fair Tax (NRST) is implimented that we will be forced into a complete socialism? Do you see the process?

[carenot]

Also, they feds will have to ban cash transactions to implement a NRST. Otherwise, I might sell you my car, house, or airplane for cash.

Silly, there would be no NRST on your used stuff.

[SupplySider]

The thing I like about a NST or a flat tax, is the accountability factor.

Absolutely. A big red "17%" at the bottom of every receipt would really change people's thinking about government spending.

[palmer]

watching them only is better than watching everyone.

Sorry, but I don't see how watching every retailer can't be used to watch every retail purchase. It seems like every item manufactured here or abroad would have to be tracked until it is sold at retail. Every item would have to be tagged and tracked lest it be diverted from the wholesale stream and sold at retail without tax.

[carenot]

As one example, think about the difficulties of collecting sales tax on illegal drugs.

Yeah, good point. I really would hate to lose all the tax money we get from the sell of illegal drugs.

[TC Rider]

Absolutely. A big red "17%" at the bottom of every receipt would really change people's thinking about government spending.

The part I like is when they have to tell people it will go from 17% to 27% to pay for senior drug benefits.

[mafree]

If this is true-- WOOOOOOOHOOOOOOOO!!!

[Nakota]

Makes sense. The purpose of the tax code should be to raise revenue, not direct social policy. A consumption tax rewards saving and investment. This is what is called a fresh idea.

[mafree]

If this happens wouldn't it be a fitting memorial to our dear departed pal CHIEF Negotiator?

(RIP Chief- think of you often and miss you)

[carenot]

No income testing. Just exclude basic food items and housing. We want the government out of our personal papers.

Dang it! What is basic food? Beans? What is basic housing?

[DH]

The "black market" is already here. It has been here for as many years as the state sales tax and mandatory sales permits have been around. Those people running these types of business DO NOT report their income to the IRS today! With a sales tax they will have no choice but to pay some of their income in the way of sales tax to reputable businesses and thus the government.

[palmer]

Unless the goods are smuggled in or you are dealing with someone selling stolen goods, you will have to purchase from a legitimate company. All our suppliers require our tax ID numbers before selling us goods for resale. You sign a form declaring they are for resale and that you will collect required taxes when you sell them. I you never send in any taxes and you buy goods wholesale, they will come looking for you.

That makes sense. What if I manufacture goods in my cottage industry? I buy lots of handcrafted items at the flea market directly from the maker. If I knew them better I could special order and pick them up at his house. Are we going to send out federal agents to do this to make sure these people charge tax? How is that less intrusive than employers witholding income tax?

Also, how will I buy ammo from a private seller or small retailer without the government tracking it?

[al baby]

If clinton got it done he would like to mount rushmore

[SupplySider]

That discrimination against the poor can be eliminated by exempting necessities

That would work, but there might be something to be said for no exemptions, though it would probably never fly politically. The poor would all become anti-tax, anti-spend Republicans.

[DH]

Has it sunk in that if the tax cheats start paying the same tax as you that your tax bill would go down? Currently I would guess that for each taxpayer there is one cheat not paying anything and not reporting their income.

If they passed the national sales tax and peoples' taxes did not go down there would be a revolution!

[bvw]

Thanks A-A for making that clear and agitator fopr bringing it up.

I have a question though. Article I, Section 8 of the Constitution says "uniform throughout the United States", and the Preamble's statement of overall limiting scope says "promote the general welfare" -- which precludes (in theory) any laws or regulation that do not apply uniformly, that is do not favor a class or subgroup of folks over another.

Isn't a "progressive" income tax short of that mark? It hits the class of rich people with a more onerous rate -- a multiple measure system.

And in the states they often have enterprise zones where the sales tax is less or none -- would such tax rate zoning also run afoul of those two Constitutional restraints?

[COB1]

"Somebody's probably alread said it, but I wish Chief Negotiator were alive to read this."

"Yes, I do too.

But he was murdered, Oct 4, 2001.

We were trying to solve it. But it was covered up."

Not deep enough, care.
Give me some more time.
I'm just stretched too thin right now.

[palmer]

You are proving my point. If we can't stop illegal drug sales, it means we probably can't tax it either, whether home made, home grown or smuggled. If we set up a high retail sales tax, the same thing can happen with almost any merchandise.