Anyone have thoughts on this?

[CNCguy]

Read it all before you make a decision. It actually has many more benefits than what is written in the article. I hope the government gives it some real consideration, it could be a real boost for our country.

http://www.townhall.com/columnists/nealboortz/nb20040827.shtml

[pocket-rocket]

Wow. All I can say is wow! Especially since Bush seems to like the idea some. Kinda makes ya think some government people actually have a conscience, lol. I'll be crossing my fingers and toes that it would actually have half a chance to even be considered.

[brian89gp]

It leaves me with a question. Say the government is getting $1bil at this point in time with income taxes. All of a sudden under the fairtax plan everybody is paying less in taxes. Wouldn't this mean the government will have less then $1bil comming in and things such as public services will need to be cut? I mean in the end the amount of money needed is going to be the same, its just how its distributed right?

Also, would exports be considered "retail"? Anyway I'm sure we have enough taxes on those already.

[StudlyCamaro]

.. now lets start talking about fair trade values of coffee

[CNCguy]

The governments income would be the same.... thats why they have been doing a study on what percentage the tax would need to be. Also, the huge underground economy income would be affected like drug dealers and people who cheat and dont report thier cash income. I personally know of people that have owned cash type businesses that didnt claim all the income but did deduct all the expenses. Im sure most of you know people like that too. It isnt fair to the average working guy who cant do that.

People need to contact thier reps in Washington and let them know how they feel.

[brian89gp]

OK. This will mean I have to pay less in taxes. Who's gonna pay more to even it out? I'm sure that drug dealers and prostitutes can't cover the whole extra cost.

I do think its a good idea, just need to do some more reading on it.

[CNCguy]

Its alot more than drug dealers and prostitutes.... dont you know of any cash type businesses like resteraunts, lawn care, auto repair, roofers etc. I peronally know people like that and alot of these people do cash jobs and dont report the income but do deduct the expenses of the cash jobs. Regular businesses have to report all income as they recieve W4's from thier customers. It really isnt fair to the rest of the people that work a 9to5 and cant deduct anything.

[bud36light]

Second. Don?t forget the 22% in imbedded taxes. These embedded taxes exist in virtually everything poor Americans or any other Americans have to buy. These embedded taxes represent all of the corporate and business income taxes and payroll taxes that the companies involved in the production, manufacture, marketing, distribution and sale of the goods and services must pay in the course of business. As soon as these taxes are gone, and after the competitive forces of the free market work their magic consumers, including the poor, will be paying at least 20% less for virtually everything they buy.

emmbedded taxes? What would make these companies ditch these taxes in the first place? Our local home rule gov just reinstated a 2 cent gas tax after they promised to drop it after their 1 cent sales tax went into effect. Good old free trade would or should eventually take prices down. What if these companies gradually lowered there prices which is what would probably happen and in the mean time my sales tax(71/8%) shot to 20% or whatever. A gallon of milk cost me $3.75 now. with 20% it would cost me $4.25.(The list of essentials of living would add up fast) People with kids would look at this and sey OH SHIT. I have to feed my family. Sure Im getting a little xtra $ on my check but prices just skyrocketed past that. Mind you this is already living on a budget that just got squeezed by a recession and 2 million job cuts. I will research this issue further as this is my first thoughts on a national sales tax ever and for fucking sure need refinded.

[robby1870]

The only problem is with the embedded taxes thing. Say the embedded taxes go away, companies can now lower their prices, since they dont have to pay these taxes. However, who's going to make them lower prices? It would be advantageous for the companies to just leave their prices where they are and make a lot of money. Other than that....sounds pretty good

[pocket-rocket]

From the little picture of a dollar bill split up on the gas pumps at local gas stations, it already looks like we pay more then 23% tax on gas. I think here in Indiana, one station had it broken down, and about 1/3 of the cost of gas at the time went to the federal govt.

[CNCguy]

The only problem is with the embedded taxes thing. Say the embedded taxes go away, companies can now lower their prices, since they dont have to pay these taxes. However, who's going to make them lower prices? It would be advantageous for the companies to just leave their prices where they are and make a lot of money. Other than that....sounds pretty good

Competition makes them go down, consumers shop for the best bargain. If it werent that way why dont companies just raise thier prices now to make more profit? Capitalism and competition makes the US great. The more I read about it, the more I like it. JMO

Kerry is against this, but this was not something the republicans came up with. But I do think Bush may try to stake claim on it. Really, I dont care which party tries to claim it, just give it some good consideration.

[robby1870]

I know competition will bring prices down, I'm just saying there's still that element left to it that can't be accounted for. It seems like a very fool-proof plan though. And, I do think the prices will go down b/c of competition

[bud36light]

Im sure you all have witnessed temporary tax raises in your state. How temporary were they?

[CNCguy]

I know what you mean about temporary... alot of school levies are supposed to be for a one time improvement, new building or whatever.. then they ask for renewals.
If they ever do the sales tax plan, it will have to be phased in. JMO

I dont know how everyone else feels but I think they should only be able to raise the rate via a national vote like cities do. Maybe we could then reign in thier excessive spending. Who knows.

I think this is the first time that there has been any real consideration for tax law changes and everyone should contact thier reps in DC to let them know how you feel.

[smilinguy99]

Well, one thing about a consumption tax is that it's regressive. Another thing is it will generally net more money for the government.

Republicans don't like it because it raises a lot of money.
Democrats don't like it because it is regressive.

We will have a consumption tax when Republicans figure out it is regressive and Democrats figure out it will raise a lot of money! I stole that quote from somebody, I don't remember who.

Boortz's quote, "Politicians will not easily surrender a funding mechanism that lends itself so well to political demagoguery and which can be used to reward political allies and punish enemies." is wrong.

They will still be able to punish and reward as always, they'll just have to fiddle with the rates on different items. For example, if they want to discourage tobacco use, they'll crank up the tax on cigars, cigarettes, and chew.

Wanna punish those darn hot rodders for fouling the air and making too much noise. Speed parts get an extra 5% surtax.

Wanna reward cotton farmers? Lower the tax on products containing cotton.

See? It's just as easy to manipulate as before.

The other thing, the "check every month" is just plain silly. Why not just NOT tax food, rent, home purchases, medicine or clothing up to a certain dollar value? The check every month just creates the "sucking the government tit" mentality on the part of the populace. Think about this. Give the money to the government so they can grind it through the bureaucracy and send it back at about $0.95 on the dollar. Oh, I can hardly wait until I can have the chance to wait by the mailbox every month for my government money check from Uncle Sugar! Makes me feel like I'm on welfare! Hey! It's my f***ing money to begin with! Why bother taking it in the first place?

It needs some work, but in principle I favor a consumption tax. Might encourage a bit more savings. Consumer debt levels in this country scare me.

sg99