Fire the IRS

Hotair ^ | 01/17/2015 | Jazz Shaw

[Principled]

Okay you must be talking about a different flat income tax proposal than I. So you’re talking about the one that exempts cap gains. That’s better!

But what about the tax Home Depot pays on its income? Is Home Depot’s [for example] income taxed - ie does business pay income taxes?

What about FICA taxes? you know, that 15.3% of wages that gets disappeared per paycheck? The flat tax keeps the withholding on the employee and keeps the employer “contributing”.

Under the nrst, no tax is paid by businesses. Of course business taxes are just taxes paid by individual consumers via hiding taxes in higher prices, paid by individual workers via hiding taxes in lower wages, and paid by individual investors via lower ROI. Business taxes are a tool used by government to hide taxes. The nrst has as one of its fundamental purposes to avoid hiding taxes. So the nrst has no business taxes - and no withholding [like the flat income tax has] btw.

Under the nrst, both the employee and employer FICA “contributions” are eliminated. The ee portion is no longer withheld per paycheck. The er portion is no longer a hidden tax in higher prices, lower wages, or reduced ROI. Under the nrst, all those taxes are made visible as part of the sales tax we pay on retail purchases for consumption.

It will be hard to outdo the nrst for simplicity and transparency. It is better than any income tax by orders of magnitude IMO.

Politically, how would it sell to have wealthy folks just live on investment income and pay no taxes under the flat tax?

[Taxman]

We are back to the FReedom issue, aren’t we, Bigun?