Movement to Completely Revamp Federal Tax System

[MMMMMM]

An idea whose time might be coming: Replace the federal income tax with a national consumption tax (with rebated exemptions for necessities such as food and clothing), and eliminate the IRS with its massively expensive bureaucracy. The movement appears to be gathering momentum on both the grass-roots and political levels.

http://www.worldnetdaily.com/news/ar...TICLE_ID=22428

[Rick Nebiolo]

Mark,

You wrote: "(with rebated exemptions for necessities such as food and clothing)"

Which of the following are necessities:

1) Your wife wants new shoes. She already has thirty pairs.

2) Haagan Daas (sp?)

2.5) $150 Nike basketball shoes

3) Twinkies

4) Balsamic Vinegar

5) A basic car (e.g., Toyota Camry, Honda Accord, Ford Tauras) if you live in Los Angeles

5.5) California Pizza Kitchen Frozen Pizzas

6) Any clothing with "Tommy Hilfinger" printed on it.

Regards,

Rick

[adios]

The problem with an income tax is that defining income for all in this society is very difficult and tedius. However, there are many analgous problems with a consumption tax that offer rebates for necessities as Rick points out in his post.

[patrick dicaprio]

while revamping of the code is a very noble goal, i would rather see a flat tax. hell i voted for steve forbes in the last two republican primaries.

Pat

[marbles]

Despite being the best possible solution, the flat tax is never going to pass in this nation. Opposing it is one of the only things that the left and right agree on.

Such is life in a two-party system.

[andyfox]

I think we pretty much have a flat tax already. When you consider not just the income tax, but also state and local taxes, sales tax, excise tax, the payroll tax, etc., our overall tax system is a lot flatter than looking at just the income tax (which itself has been flattened considerably in recent years) would indicate.

A flat income strikes me as unfair. Steve Forbes can afford to pay not just an absolute dollar amount far in excess of someone with one-tenth of his income, but also a higher percentage. My suspicion is that most devotees of the flax tax in Congress are really using it as a way to lower the top rates and don't really care about flatness at all.

[HDPM]

No way we have a flat tax. I am sick at the amount we have to pay now. I am glad we are fortunate enough to pay, but we have paid so much that we could have used for something productive. The TOP federal tax rate should be less than 10%. One problem with the flat tax people is they want the tax to be like 25% which is way too high. But the tax rate should be reasonably flat for moral reasons. Successful people (Andy Fox included) should not have money stolen from them for productivity. There should be no punishment for success. A progressive tax with the lowest rate at 5% and the highest at 12% might be OK. But 12% of a rich person's money is a huge cut. I know this will mean cuts, but government is way to big and need to be cut drastically. Won't happen though. We have become inured to the idea of stealing from the rich and reasonably well-off middle class people to pay for the wants of others. It should stop.

One advantage of a consumption tax is that it would turn me into an investor and miser. I'd drive a car 300,000 miles if I could to avoid a sales tax that would go to the crap the federal government pays for. I don't think we will see it because the tax is a great reason to live very frugally, and we generally don't like that.

[B-Man]

I agree 100% with HDPM. Also, just because "Steve Forbes can afford to pay not just an absolute dollar amount far in excess of someone with one-tenth of his income, but also a higher percentage," that does not mean it is morally correct or equitable to force him to pay a higher percentage.

I would be in favor of a minimum income threshold before the flat tax kicks in (in other words, I don't think people at or below the poverty level should have to pay), but I think a flat tax is more fair than a progressive tax.

I also strongly doubt we will ever see a flat tax (since there would be far less money for our politicians to waste), so this whole discussion is probably moot.

[B-Man]

[marbles]

"I also strongly doubt we will ever see a flat tax (since there would be far less money for our politicians to waste), so this whole discussion is probably moot."

I agree with this wholeheartedly. The only people that could make a flat tax a reality are politicians, and it is not in the individual best interest of any of them.