Taxes headaches - Page 3 - PeachParts Mercedes-Benz Forum

cjlipps · #31 04-02-2007, 02:43 PM

I wish I could take credit for it.
I know very little about taxes but this makes sense to me. It's funny, true and involves beer. Paradoxically, it's also not funny because it is so true. But it still involves beer.

raymr · #32 04-02-2007, 02:50 PM

Quote:

Originally Posted by SwampYankee

The only thing easier than a flat income tax would be a flat federal sales tax. Then you wouldn't have to file anything. Just pay as you go. I don't see any politician having the balls to propose either one. No matter the party. They want our money just as badly as we do.

At the risk of sounding repetitive, FairTax is exactly that - a consumption tax. No more income tax, capital gains tax, interest tax, and no more IRS. It's a 23% federal tax on new retail goods and products that you buy. Every head of household, regardless of income, gets an automatic monthly refund (prebate) from the fed to zero out taxes up to the poverty line. Any spending over the poverty line, in effect, gets taxed. That's how it benefits poor households. You can also see how the refund would compel illegals to get a SSN and become legal.

FairTax now has a number of congressional co-sponsors.

SwampYankee · #33 04-02-2007, 03:37 PM

Quote:

Originally Posted by raymr

At the risk of sounding repetitive, FairTax is exactly that - a consumption tax. No more income tax, capital gains tax, interest tax, and no more IRS. It's a 23% federal tax on new retail goods and products that you buy. Every head of household, regardless of income, gets an automatic monthly refund (prebate) from the fed to zero out taxes up to the poverty line. Any spending over the poverty line, in effect, gets taxed. That's how it benefits poor households. You can also see how the refund would compel illegals to get a SSN and become legal.

FairTax now has a number of congressional co-sponsors.

My bad, raymr. I confused Flat Tax with Fair Tax. I don't see how anyone could be opposed to a consumption tax. But they are. I'd like to see it happen. But there are a lot of IRS employees and accountants who think otherwise, too

I'll check out that link.

Dee8go · #34 04-02-2007, 03:48 PM

Yes, that's a good point. There are a lot of folks with a vested interest in maintaining the status quo. Besides that, the argument would immediately be raised that this would kill the economy. It would probably make people think a lot harder about the things they buy.

The credit card companies would no doubt be lobbying against it, too.

On the other hand, it would boost savings overnight. If it turned us into a nation of savers and producers again, rather than a nation of consumers, there might be hope for us yet.

raymr · #35 04-02-2007, 04:11 PM

Quote:

Originally Posted by Dee8go

Yes, that's a good point. There are a lot of folks with a vested interest in maintaining the status quo. Besides that, the argument would immediately be raised that this would kill the economy. It would probably make people think a lot harder about the things they buy.

The credit card companies would no doubt be lobbying against it, too.

On the other hand, it would boost savings overnight. If it turned us into a nation of savers and producers again, rather than a nation of consumers, there might be hope for us yet.

We also at one time had legions of ice men making deliveries to people's houses before we had refrigerators. Can you picture something like that today? There will still be a need for accountants and tax collectors, there will just be fewer tax collection points.

I'm trying to figure out why credit card companies will have a hard time with this? They will still be able to charge interest. People will continue to buy the things they want, once they are used to the sales tax. But those who decide to save can benefit the most. The gov has been trying to spur individual saving rates but so far has failed.

Dee8go · #36 04-02-2007, 04:17 PM

I think the allure of buying stuff we don't really need in the first place will wear off quickly if the govt collects our tax dollars as a sales tax. Of course, some people will spend and live beyond their means no matter what.