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To: taxcontrol
Sorry for a bucket of cold water but the problem does not lie with the tax collection SYSTEM. As long as congress is able to spend / borrow AT WILL, no tax collection system will ever be a fix.

A national sales tax will prevent excessive spending. Excessive spending would result in corresponding amount of taxation. People will respond with less consumption under a national sales tax, resulting in a tax collection decrease. Congress can only maximize it's collection by keeping the tax rate within a reasonable boundary. This concept is illustrated in founding father and first Secretary of The Treasury Alexander Hamilton in his Federalist Paper #21. To quote:

It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, "in political arithmetic, two and two do not always make four." If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them.
14 posted on 01/28/2010 10:42:33 AM PST by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: Man50D

Sorry, but a sales tax is just another tax collection system. It is foolish to think that it will some how control spending. As long as Congress can barrow on the full faith and credit of the United States, it can spend at will .... regardless of how much it brings in ... regardless of the method to collect.


16 posted on 01/28/2010 10:57:24 AM PST by taxcontrol
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