"Fair Tax" FReepers...Prepare For
If we do nothing, our children and grandchildren can expect to pay 84% of their income in taxes. It's
called "Tax-Creep", that will continue to grow unless we stop it now! This "beast that must be fed" is the
Internal Revenue Code. It's like a drug to the politicans that the Gucci Gulch crowd sells them, and almost
every one of them are hooked.These supposed elected servants will continue to "Tiptoe Through The Tax code Tinkering Tango" unless voters wise-up. The music sounds nice, but you're dancing with two left feet. Did you know that there have been over 6,000 changes to the IRC just since 1986? Is it less confusing, less intrusive, or less abusive?
The latest example of "tax code manipulation" is the $792 Billion tax cut package. If you happen to be a "tackle box" manufacturer in Speaker Hastert's district...you get a tax cut. I wonder how much re-election money he was paid to have that jewel added?
Ah... the Infernal, Eternal, Incomprehensibale, "Internal Revenue Code"--It has grown from a "FLAT
INCOME TAX" of 14 pages in 1914, that only the rich had to deal with, to over 2,000 pages of law, 6,000
pages of regulations, and hundreds of thousands of pages of rulings and interpretations that we ALL have
to deal with. It is 14 times thicker than the Bible and fills a whole bookshelf!
Top-Earning Five Percent of Taxpayers Pay More than Half of
Federal Individual Income Taxes
In 1996 the top 50% of income earners, (incomes over $74,481) paid 95.7% of the federal individual income tax burden while the bottom 50% paid only 4.3%. If the liberals insist on a middle class tax cut, you have to ask yourself, "what is middle class"?
This "Robin Hood" method of income taxation severly restrains much needed economic growth. When you rob Peter to pay Paul, you'll always have Paul's vote. If you hoodwink enough Pauls, (51% of voters) you will continue to see increased taxes because they are the only ones that benefit from higher taxes with more government spending on "social programs".
Tax preparers and income tax experts who routinely testify before Congress admit that even they do not
fully understand all the provisions and ramifications of the IRC. Several years ago, Money Magazine gave
48 accountants nationwide a financial profile of the magazine's typical reader and then asked them to
prepare a hypothetical tax return. Not only did each of them come up with a different answer, but the
computed tax liability for this one family ranged from $16,219 to $46,564. Here's the real bottom line: the
income tax code is a mess; the IRS is out of control; and it's time to scrap them both and start with a clean
sheet of paper.
Consider this: In addition to being confusing, the present income tax code also results in an unbelievable
amount of wasted time. Americans spend more than 5.1 billion hours merely filling out income tax forms.
None of this time is for productive enterprises that actually add to the social, economic, or moral well-being
of our society. By some estimates, the cost of compliance exceeds $300 billion a year - that's in addition to
the $600 billion a year Americans also pay in taxes!
The "Price of Civilized Society" Surges to $10,298 Per Person in
the U.S.
"Americans will spend more money per capita in 1999 on taxes ($10,298) than on food ($2,693), clothing
($1,404), and shelter ($5,833) combined," according to Patrick Fleenor, senior economist at the Tax
Foundation and author of the new report titled "The Price of Civilized Society."
From 1981 to 1999, the federal government increased
what it collects per person more than 45
percent!
This chart looks promising for
your children's future, doesn't it?
Until you and I get FED UP with government confiscation of YOUR money,
within 18 years expect your children and grandchildren to spend over $20,000 per year to
"feed-the-beast"!
The Internal Revenue Service employs
more investigative agents than the FBI and the
CIA combined, and with 115,000 employees,
employs more people than all but the 36 largest
corporations in the United States.
In addition to the $7.2 billion needed to operate
the IRS, at least $225 billion (that is $850 for
every man, woman, and child in this country)
must be added to account for the cost of
complying with the tax code. Massive amounts of
our national wealth are consumed merely by
measuring, tracking, sheltering, documenting,
and filing our annual income. 115,000 IRS agents know more about you than your family does!
Karl
Marx included an
income tax as a
key feature in
the Communist
Manifesto. Read Article 1 Section 9 of the Constitution, our Founding Fathers rejected an income tax.
What is the solution?
- Abolish the income tax
- Abolish the Gestapo IRS
- Repeal the 16th Amendment
- Replaced with a National Retail Sales Tax
It is
A Conservative Winning Agenda For Election 2000
Americans for Fair Taxation is a 501 (c) (4)
not-for-profit, non-partisan citizens organization,
seeking to replace all federal income taxes with
a single rate retail sales tax at the final point of
sale of new goods and services for personal
consumption above the poverty level.
Established in 1995, AFT is headquartered in
Houston, Texas, and is developing fundraising
and grassroots political operations in all major
American metropolitan areas.
What will be taxed?
A 23 percent, single rate, single stage tax, the
FairTax will be applied to the sale of all new
consumer goods and services at the final point of
consumption. Used items will not be taxed.
Business to business purchases for the
production of goods and services will not be
taxed.
Exactly what taxes will be abolished?
The FairTax is a replacement tax and it will
replace the individual federal income tax
including, capital gains taxes, all payroll taxes,
corporate income taxes, the self-employment
tax, estate, and gift taxes.
How will the rebate work?
All valid households will receive a rebate
equivalent to the FairTax paid on essential
goods and services. The rebate will be paid in
advance, in equal installments each month. The
size of the monthly rebate will be determined by
the government's Poverty Level for a particular
household size, multiplied by the tax rate.
(Household is defined here as one or more
individuals.)
Isn't 23% too high?
Not when you figure in the "Family Consumption Allowance (rebate)
The "FairTax" 1999 Rebate Figures
|
Household
|
Household
|
Annual
|
Monthly
|
Size
|
Allowance
|
Rebate
|
Rebate
|
One
|
$8,240
|
$1,895
|
$158
|
Two
|
$16,480
|
$3,790
|
$316
|
Three
|
$19,300
|
$4,439
|
$370
|
Four
|
$22,120
|
$5,088
|
$424
|
Five
|
$24,940
|
$5,736
|
$478
|
Six
|
$27,760
|
$6,385
|
$532
|
Seven
|
$30,580
|
$7,033
|
$586
|
Eight
|
$33,400
|
$7,682
|
$640
|
Compared to the income tax, what would our effective tax rate be with the rebate figured in?
| Income for Family of Four |
Current Income Tax Rate with Payroll Tax (Assumes Employer and Employee payroll tax portions) |
FairTax Rate (Assumes all income is spent-includes rebate) | FairTax Rate (Assumes family saves, invests and/or spend 25% on used [previously taxed] items
|
| $15,600 |
18.1% |
0.0% | 0.0%
|
| $31,200 |
23.3% |
10.44% | 6.26%
|
| $46,800 |
25.6% |
14.63% | 11.83%
|
| $62,400 |
27.5% |
16.7% | 14.63%
|
As you can see, your effective tax rate will be no where near 23%, because of the rebate that is paid to you in advance.
Full text of H.R.2525 "The FairTax Act of 1999"
Our Founding Fathers must be turning over in their graves because of the taxation mess we've allowed.
Yes we've allowed!...We were given a Constitution that we no longer cherish. "Taxation without
representation", was the cry. Why isn't that the cry today? Have our elected representatives been successful
in "dumbing down" the American tax payer? Forget the tea, let's throw all of Congress into Boston Harbor
along with the tax code!
Better yet, let's walk shoulder to shoulder and make our voices heard. pigdog, Taxman and I have devised a plan to get the most "bang" for the buck. Will you spare five minutes a day so our children will have a Nation our Founding Fathers envisioned? Before you answer, read:
Would Thomas Jefferson Think We Are Free?
If you would like to join us in the Cyber-War, please EMail "Taxman", Frank Davis who is with the National Retail Sales Tax Alliance ...fdavis@nationalsalestax.com, and tell him that you are willing to join the "Cyber-War"! Leave him your name, your "screen-name" on FR, and EMail address. "Taxman" will forward the list to "pigdog" who will compile the list and send you all the neccessary information. Please do not distribute the EMail list to anyone else.
Thank you,
CHIEF negotiator
SONG PARODY: Tiptoe Through the Tulips
(blow up the tax code)
By Doug From Upland MIDI - TIPTOE THROUGH THE TULIPS
Every year they try…try to suck us dry
It’s time that we stand up, time that we stand up
Let’s start telling them that that is all they’re gonna get
We work hard each day…they take it all away
It is time we tell them, yes we must tell them
That they can put all their regs where the warm sun never shines
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
As they keep taking all of our money…we get really bent
Just give them the chance and they’ll take 80 percent
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
(brief jazzy musical interlude)
They keep taking all our money…we get really bent
Give them the chance…it’s 80 percent
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
Every year they try…try to suck us dry
It’s time that we stand up, time that we stand up
Let’s start telling them that that is all they’re gonna get
We work hard each day…they take it all away
It is time we tell them, yes we must tell them
That they can put all their regs where the warm sun never shines
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
As they keep taking all of our money…we get really bent
Just give them the chance…it’s 80 percent
Let’s blow up the tax code…dreaded tax code…stinking tax code
Come on, let’s blow up the tax code today
Kill the tax code today
:-? Peace(pipe)
1 Posted on 11/23/1999 13:53:50 PST by CHIEF negotiator (Visualize Whirled Peas!)
To: pigdog
Sorry Muttley, but I have not claimed the tax FairTax bill is vague ... in fact just the opposite, I claimed it meant exactly what it said.
WARNING: Freeper "pigdog" will misrepresent what he says about the sales tax in order to mislead others into thinking the sales tax is a good idea.
You are merely scaring yourself unnecessarily Muttley, and missing some important things to boot.
Earlier in the bill than the extracts you posted, under DEFINITIONS, we have:
"`(8) PRODUCE, PROVIDE, RENDER, OR SELL TAXABLE PROPERTY OR SERVICES-
(A) IN GENERAL- A taxable property or service is used to produce, provide, render, or sell a taxable property or service if such property or service is purchased by a person engaged in a trade or business for the purpose of employing or using such taxable property or service in the production, provision, rendering, or sale of other taxable property or services in the ordinary course of that trade or business.
Note that this definition would preclude the padlock, air conditioner, etc. the owner buys from being tax-exempt when sold to the owner since as a used rental property it is neither to be used in a sales-taxable property nor resold.
Even in the extracted portions you quote, the owner would not be required to pay the sales tax when buying the new locks, etc. since as required in (b) (1) and (2), any such tax is clearly excluded (and (3) is too vague for any reasonable use) and (c) clearly defines a different type of investment; one of securities, perhaps, requiring only minor personal efforts whereas managing rental properties clearly involve more than minor personal efforts.
My observation is still that the new locks and etc. the owner purchases will be subject to his (the owners) paying the sales tax because they are being used in a used rental property - a nontaxable entity - and they are not for resale.
The fact that the owner hopes to derive money from the improvements to the rental is of no consequence taxwise.
Little Willie is "The Worst President In American History."
110 Posted on 11/16/1999 14:41:41 PST by pigdog
In the above passage, pigdog claims that landlords must pay sales tax on purchases used for their business such as lock sets and air conditioners. The (1) and (2) to which he refers are exemptions to the sales tax for business and investment purposes. In pigdog's analysis of the sales tax, property managers' investments do not qualify as "business expenses" or "investments". The (3) to which he refers to as "vague" is the exemption for bona fide business expenses. Apparently, changing the locks on an apartment after a tenant moves out is not a bona fide business expense of a property management company.
12 Posted on 11/23/1999 14:58:58 PST by Muttley
To: pigdog
I'd make it clear that I have read the posts between the two of you and he also said no such thing as the "double taxation" rocket you try to launch in his absence.
If you have been reading the posts between Taxman and me, you certainly would have seen Taxman tell me this:
"You are confusing past taxes paid with liability for taxes in the present." -- Taxman
Taxman wants me to forget that I already paid taxes once. Why does he tell me to forget past taxes and pay present taxes? Is this the basis of the sales tax -- forget how much you have already paid, pay again? Of course he won't say it is double taxation, but if I have to pay taxes twice, it is indeed double taxation.
I read on the previous thread how you people attack anyone with a knowledge of economics, probably because you don't possess the knowledge yourself. But I will repeat what I wrote on the other thread: The sales tax and flat income tax are based on the same principle -- tax consumption once and only once. The flat income tax succeeds; the sales tax fails.
15 Posted on 11/23/1999 15:23:10 PST by Muttley
To: CHIEF negotiator
Some FReepers love the fact that people will continue to face penalties, interest, audits, liens, seizures, garnishment of wages and even prison by keeping the abusive, intrusive, incomphensible income tax system and Gestapo IRS! Do not pay them any mind.
Certainly you don't mean that penalties, interest, audits, liens, seizures, etc. will end with a sales tax, do you? I suppose that a landlord who doesn't remit the sales tax won't face interest, audits, liens, seizures, prison. I will gladly collect sales taxes, then. I just won't remit them. I ought to be pretty rich in a couple of years.
No, I think you mean YOU won't face these measures. Quite a moral person you are, CHIEF negotiator. Force others to remit the tax, not me. Throw them in jail if they don't comply. You are selfish, CHIEF negotiator. You want to place the entire burden on others while doing nothing yourself. I guess you're right. YOU won't have to deal with the "vague" tax code. YOU won't go to prison.
16 Posted on 11/23/1999 15:29:41 PST by Muttley
To: CHIEF negotiator
Previously unreported income never taxed by the income tax system will now be taxed when drug dealers, prostitutes, loan sharks, various crooks and illegal aliens purchase new goods and services....bread, bananas, bicycles, Buicks, BMWs and BIG BOATS!
You know this line isn't true. The sales tax is a lot like the income tax.
Currently, I collect rent. What is above my costs is income. I pay a portion of that as income tax.
With a sales tax, I collect rent. I then collect sales tax on top of the rent. It is still up to me to remit the tax to the tax authorities. Either way, I have to send a check to the government.
We know the drug dealer, prostitute, etc., doesn't pay attention to the tax laws in the current income tax. Do you really think he will collect sales tax and cut a check the state? Either way, you have to rely on the honesty of the small businessman. Drug dealers and prostitutes may be small businessmen, but they aren't quite as honest as you think.
21 Posted on 11/23/1999 16:06:10 PST by Muttley
To: Muttley
"Certainly you don't mean that penalties, interest, audits, liens, seizures, etc. will end with a sales tax, do you?"
For everyone that does not own a retail sales or service business. April the 15th will be just another spring day for about 90% of American citizens.
"I
suppose that a landlord who doesn't remit the sales tax won't face interest, audits, liens, seizures, prison. I will gladly
collect sales taxes, then. I just won't remit them. I ought to be pretty rich in a couple of years."
Why don't you contact carrie@fairtax.org and ask her?
"No, I think you mean YOU won't face these measures. Quite a moral person you are, CHIEF negotiator. Force others
to remit the tax, not me. Throw them in jail if they don't comply. You are selfish, CHIEF negotiator. You want to
place the entire burden on others while doing nothing yourself. I guess you're right. YOU won't have to deal with the
"vague" tax code. YOU won't go to prison."
Crawl back under your rock mutt-hound. If anyone should be against the FairTax it would be me, because I have a service type business that will have to start charging a NRST!
I see that you don't give a damn that in 20 years your children and grandchildren will pay over 80% of their income in taxes if nothing is done.
22 Posted on 11/23/1999 16:10:58 PST by CHIEF negotiator (Visualize Whirled Peas!)
To: Muttley
I'll let you and Taxman argue about (your term) "double" taxes (at least for now).
You have certainly not overwhelmed anyone with your economic brilliance, particularly when you can't seem to realize that the Forbes flat-VAT income tax plan retains the payroll taxes (the largest tax for many), the IRS, the income portions of the tax code (so you can be required to prove legally what your income is or is not), and the entire lobbying structure.
In addition the flat-VAT income tax does nothing but shift the tax burden onto a smaller number of taxpayers (including certain types of business which are hammered by the change). Moreover, the flat-VAT income tax leaves the entire lobbying structure intact (and probably even better-funded than before since the rich no longer have to pay taxes but can live off their investment income and hire lobbyists for their favorite "things" to be paid for by the rest of us.
Some economist you are for favoring such a plan. Also, the NRST and flat-VAT income tax are not at all alike in that the "consumption" you refer to (a favorite technique of those who like to obfuscate) is consumption as defined by theoretical economists. It is certainly not consumption as most ordinary people would define it; the FairTax is in that consumption is what you purchase. The flat-VAT income tax plans are nothing but subtraction-method VAT's. Some economist you are, I repeat.
Little Willie is "The Worst President In American History."
33 Posted on 11/23/1999 17:33:30 PST by pigdog
