Posted on 08/01/2004 6:08:53 PM PDT by NeoCaveman
A domestic centerpiece of the Bush/GOP agenda for a second Bush term is getting rid of the Internal Revenue Service, the DRUDGE REPORT has learned.
The Speaker of the House will push for replacing the nation's current tax system with a national sales tax or a value added tax, Hill sources tell DRUDGE.
"People ask me if I’m really calling for the elimination of the IRS, and I say I think that’s a great thing to do for future generations of Americans," Speaker of the House Dennis Hastert explains in his new book, to be released on Wednesday.
"Pushing reform legislation will be difficult. Change of any sort seldom comes easy. But these changes are critical to our economic vitality and our economic security abroad," Hastert declares in SPEAKER: LESSONS FROM FORTY YEARS IN COACHING AND POLITICS.
"“If you own property, stock, or, say, one hundred acres of farmland and tax time is approaching, you don’t want to make a mistake, so you’re almost obliged to go to a certified public accountant, tax preparer, or tax attorney to help you file a correct return. That costs a lot of money. Now multiply the amount you have to pay by the total number of people who are in the same boat. You can’t. No one can because precise numbers don’t exist. But we can stipulate that we’re talking about a huge amount. Now consider that a flat tax, national sales tax, or VAT would not only eliminate the need to do this, it could also eliminate the Internal Revenue Service (IRS) itself and make the process of paying taxes much easier."
"By adopting a VAT, sales tax, or some other alternative, we could begin to change productivity. If you can do that, you can change gross national product and start growing the economy. You could double the economy over the next fifteen years. All of a sudden, the problem of what future generations owe in Social Security and Medicare won’t be so daunting anymore. The answer is to grow the economy, and the key to doing that is making sure we have a tax system that attracts capital and builds incentives to keep it here instead of forcing it out to other nations."
All tax systems require reporting, collection and enforcement. Eliminate IRS? Sure, but replace it with some other organization doing the same thing.
That's a terrific idea on the tax side, and I am all for it. I'm not sure, however, that it qualifies as a spending cut. The Government will either find ways to exempt itself, or if all else fails print more money for itself. Spending cuts have to be specific and significant.
The main reason being that everyone pays taxes (the drug dealers, the prostitutes, those that perform work under the table, they guy that runs the car wash, etc.). ---Not just the honest people that have a job and actually file taxes.
You're exaclty right. Without meaningful spending cuts, it will be an empty gesture.
"I saw on a John Stossel special about getting rid of the department dealing with welfare (whatever that's called) and he said something to the effect that those who receive a check only get a few hundred dollars per month, but if they got rid of the department and the employees and the bureaucracy, the savings would allow the Federal government to just write a check to each individual for something like 20 to 40 thousand dollars per year and end their poverty."
-- Exactly. Libertarians and many conservatives have known this for years, but never speak up. I remember Ann Coulter was on Fox News a year ago and was talking about public housing. She stunned her liberal opponent by suggesting that we're better off just giving them ownership of the property! The Lib was dumbfounded, unable to comprehend the fundamental concept of property rights.
"Aero-Swine traffic at your twelve o'clock, same altitude, two miles and crossing."
"I propose a wealth tax on gigolos and their sugar mommas......"
-- that's what the FairTax does! it reduces the tax burden on small business owners and the "new rich" and taxes people like the Kerrys who live off tax-free bond interest all year and don't pay taxes. Why do you think it is that millionares are republicans and billionares are democrats???
Do everybody a favor and spend 5 min. at http://www.fairtax.org
It's not a VAT, but a National Retail Sales Tax (NRST). It actually compares a NRST to the current system and Dick Armey's Flat Tax. Loads of other info. too.
This is a slippery slope. It does not address the core issue - that people use public housing because they are unable to make a decent wage because they - either directly or indirectly throug the businesses that would employ them - are heavily overtaxed. The band-aid solution of just giving them the housing is a low-cost implementation of a Marxist solution.
Now, I know neither you nor Ann Coulter was actually suggesting this, but ut us the sort of thing that can get taken out of control.
Tell your husband that under the Fair Tax, he will make more money, work shorter hours and have a better home life!
How much do you see him between January and April?
He is trained to help his customers grow their wealth, not avoid paying taxes. Absent the evil tax code, he can spend his valuable billable hours providing advice and counsel to his clients doing just that in a growing and vibrant economy.
AMEN to that. Some will say look at the unemployment this would cause. I say so what. How many honest Americans have gone to prison because of IRS misactions? More than we will ever know. You, me, and just about every other poster on this forum would love to see the IRS banished to the dark side of Pluto. I back GWB on this one. He also will be getting my vote in November.
I agree with you. I would also wonder why the FedGov would employ people that can't find jobs anywhere else...
"How can the Democrats argue with that?
They argue with it because it makes sense and is a conservative idea. The triclk is to make them think it is their idea.
Of course, then the GOP will argue with it because it is a democrat idea...."
-- I've been actively supporting the FairTax Natinoal Retail Sales Tax (NRST) for about a year know, and I've have wondered over this point. I think there's no way that a liberal democrat can argue against a tax that completely eliminates all forms of taxation for those under the poverty line, including Payroll Taxes. If they did, they couldn't play class warfare anymore. My guess is that they'll accept the inevetible, then try to get the rebate raised more and more every year.
go to http://www.fairtax.org
Absolutely! Everyone hates the IRS. Those who hate President Bush would probably hate the IRS even more. This would kill Kerry in a NY minute, if the Republicans adopt this as their platform.
"Here is how the president could accomplish this by himself: I make a national speech and tell the people to stop paying income taxes immediately with the promist that he will reign back the IRS and pardon EVERYONE who is arrested for non-paymen then tell them about the positive things that a national sales tax would do. Congress would howl, of course, but they would have to find an alternative source of income quickly, which just so happens to be sitting in committee right now."
-- Now that's power politics!
What spending cuts have the Republicans promoted?
Your question is something of a non-sequitar. We are talking about changing the tax system, not spending cuts. Still, savings will be realized if you can eliminate the IRS and the voluminous tax code, which costs money for the USG to administer and for the taxpayer to submit the required paperwork.
In point of fact, neither party has really made spending cuts in absolute terms but only slowing the rate of growth. The Federal budget grows every year.
Nice post -- and I agree with you 100%. My vocation as pastor makes me self-employed for the purposes of Social Security and an employee for the purposes of Federal/State income taxes.
Last year was the first year that I filed under this system after moving from the public sector. I about fell over when I got my prepared tax returns -- all of my student loans that I had planned on paying off before the anticipated date are back on the long-term schedule solely because of the burden of Social Security.
I wouldn't be self-employed if it wasn't necessary to make my living.
Double taxation of savings exists right now, right here in River City!
Who do you think pays the corporate income tax and pays for all the distortions in the economy the income tax causes?
Consumers do!
And this "tax cost of government" is roughly 25% of domestic retail sales prices. For every dollar you spend, whether FRom current income or savings account, you are paying a $.25 "tax."
The Fair Tax eliminates the "Tax cost of government," and will result in a 25% reduction in consumer prices.
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