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To: Rusty0604

I am going to respond to you because I can see you are new to these issues and I want others to be able to see the fine points.

> “I prefer a flat tax for all incomes.”

A flat tax never stays flat. There have been 5 flat tax laws in American history beginning with Lincoln’s 1% flat income tax in 1861. There were others after 1861 but they were either struck down as unconstitutional or they were not renewed because they were unpopular. But each would get expanded in subsequent sessions of Congress until they were taking the form of graduated.

The income tax that accompanied the 1913 16th Amendment was also flat but quickly ‘expanded’.

The lesson of history is A FLAT TAX NEVER STAYS FLAT. Many think flat tax, no deductions, no exceptions but they don’t realize there is no Constitutional Amendment to keep a flat tax flat. So subsequent sessions of Congress will take say a 10% flat tax and make a new bracket or two so that it becomes say 7%-10%-14% etc. There’s nothing to stop this. Congress can always do it because the 16th Amendment gives them a license to do it.

> “Everyone should have to pay.”

Poor people like grandmothers that live alone on Social Security have to get by with about $980 per month. Take a 10% flat tax out of their income and that’s $98 per month. To those kinds of people that represents an enormous amount of money.

This is why the Flat Tax is called ‘regressive’ because it hurts lower income people more. We don’t want a society that hurts poor people by taxing them with a regressive tax.

> “The sales tax would work except then they talk about having to give poor people refunds, etc.,”

There is a return of taxes already paid (rebate) but not just to poor people but to all people equally. Grannies on Social Security get the same rebate as a billionaire. It’s about $225 per month and represents 23% of $980 per month.

The idea is that no American is taxed on the essentials of living. Here it is with emphasis::

AMERICANS ARE FREE FROM FEDERAL TAXES ON SPENDING FOR THE ESSENTIALS OF LIVING.

This is the same for old age pensioners, billionaires, whether one lives in high-cost Manhattan NYC or low-cost North Dakota. It’s the same; no exceptions. And although it can change in numerical value, it can never grant exceptions to one group over another; why?

Because the 16th Amendment will go away leaving federal government taxation to fall under the original provisions of Article I, Section 8:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence[note 1] and general Welfare of the United States; but all Duties, Imposts and Excises shall be ***uniform*** throughout the United States”

So there will never be games played with taxes because it would be unconstitutional to do so.

> “then there you go again with a big agency full of union gov’t workers.”

Nope. The National Retail Sales Tax or NRST is collected by States for the US Government. Most of the States collect sales taxes now. They will add another sales tax for the federal government.

The Flat Tax requires an IRS to stay in place because it causes each American to pay income tax to the Department of the Treasury. Then when the Flat Tax starts to grow and become graduated as it always does, then the IRS needs to grow to keep up with the job of collections and enforcement.

Lastly as for enforcement, even though you didn’t mention it, the enforcement of the NRST is enormously easier than enforcement of a Flat Tax which is an Income Tax.

Remember the Flat Tax is Income Tax, it is a ‘baby’ Income Tax that will grow up into what it has become today. And Tax lobbyists will love to be in on the ground floor of watching it grow because it brings them a lot of work, a lot of new clients at top dollar.

Here’s a real easy question & answer guide that reveals a lot about a consumption tax:

https://fairtax.org/faq


34 posted on 04/27/2015 7:03:26 PM PDT by Hostage (ARTICLE V)
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To: Hostage

I was assuming exemptions and individual deductions as we have now so granny can keep her SS, but definitely do away with EITC and other tax credits that enable people to get thousands in “refunds”.

I have seen some proposals on nat’l sales tax that were pretty convoluted, but if there was a plan as simple as you suggest, that would be the most fair. I’m afraid that the gov’t would turn it into a fiasco just as the FIT.

The States should collect the taxes the federal gov’t needs to fulfill their constitution responsibilities ONLY, not one penny more. If we could get to that it would solve a lot of our problems.


36 posted on 04/27/2015 9:12:53 PM PDT by Rusty0604
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To: Hostage

You are correct....in my opinion, meet the new boss...same as the...

Any overhaul or closing of any Federal Agency... will be a sum zero proposition unless the 17th Amendment is repealed completely. It will be a kick the can down the road legislation. Does anyone really think our Federal Legislature and Government will care or change... look to the many felonies or crimes not be addressed right now: IRS Lois Learner, EPA e mails, Boston bombers, Benghazi, current pResident eligibility...

Fedzilla and K street will just morph into a new larger virus on the American citizen.


42 posted on 04/28/2015 3:46:37 AM PDT by Article10 (Roger That)
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