What do you think of a national retail sales tax?

Dis · February 25, 2003, 05:47

OK I don't necessarily support this. I just happened to hear about this, and was wondering if this is even feasible.

I'm sure this website is from some whack job, but here is the link
http://www.geocities.com/cmcofer/ftax.html

Here is what this tax will do (from the website):

OK, let's review: The FairTax Will:

• Repeal the federal income tax.

• Repeal all payroll taxes including taxes on Social Security and Medicare.

• Protect and ensure the funding of Social Security and Medicare.

• Repeal corporate and self-employment taxes.

• Repeal all estate, gift, and capital gains taxes.

• Taxation of income will be unconstitutional upon repeal of the 16th amendment.

• Allow you to keep 100% of your paycheck, pension, and social security payment.
View your Paycheck! under the FairTax plan.

• Bring about a reduction of the cost of new goods and services by 20% to 30%.

• Raise the same amount of money for the federal government, i.e. "revenue neutral."

• Eliminate the Internal Revenue Service.
- No more taxpayer time wasted on filling out cumbersome IRS forms.
- No more IRS audits of individual taxpayers, no more IRS intimidation,
no more levies, liens or home seizures by the IRS.

• Substantially reduce tax rates for lower and middle-income Americans.
- Income Tax vs FairTax: MONEY AHEAD!

• Allow families to save more for home ownership, education and retirement.

• Provide a universal rebate equal to the sales tax paid on essential goods and
services to ensure that no American pays taxes on necessities. REBATE!
Important! The Rebate is based only on family size (not on Income).

All Americans will receive the Rebate, in advance, monthly! Click REBATE!
above for more info. All Seniors, including those on Social Security, will be
pleased to note that they will receive the Rebate, too.

• Apply a 23% tax-inclusive rate sales tax on the purchase of New Goods and
services in the U.S. Note: Used Goods and Education costs (ex: College Tuition)
are not subject to the FairTax.

• Make American products more competitive at home and overseas. Encourage
job-creation in America. Help reduce America's Trade Deficit.

• Stimulate economic growth in the U.S. by a far greater amount than the
government's "tax-cuts" and "stimulus package" will ever do... and enable
the economy to continue to grow year-after-year.

MikeH · February 25, 2003, 06:05

We've got one. And income tax.

Dis · February 25, 2003, 06:10

yes but income tax is horrible in the U.S.

And there are so many exemptions. Why should a woman with no self control get all kinds of tax credits for having 20 kids? screw that.

Urban Ranger · February 25, 2003, 06:10

You can't kill off other taxes just because you put in a sales tax, this is silly.

Canada got one too, the GST.

The Mad Monk · February 25, 2003, 06:16

...and yet, that seems to be the direction the Bush administration is heading in.

Asher · February 25, 2003, 06:19

They won't take away any taxes by adding the GST.

The Liberals got elected a decade ago on the promise of ridding us of the GST. It's still there.

Jaguar · February 25, 2003, 06:21

Quote:

Originally posted by Asher
They won't take away any taxes by adding the GST.

The Liberals got elected a decade ago on the promise of ridding us of the GST. It's still there.

You never give those Eastern liberals a break, do you?

I think that this idea sucks because it discourages spending.

Urban Ranger · February 25, 2003, 06:22

The GST is a bit high at 7%. If they cut it they might stimulate the economy somewhat.

Asher · February 25, 2003, 06:25

There was even talk of RAISING the GST last year.

Berzerker · February 25, 2003, 06:26

Quote:

• Make American products more competitive at home and overseas. Encourage
job-creation in America.

That is very important.

Tingkai · February 25, 2003, 06:29

A bunch of idiot Hong Kong politicians want a sales tax here.

They figure if the government taxes everyone, including the poor and 16 million tourists a year, it will mean the rich won't have to pay more taxes.

The accountants love the idea because it means more paperwork, and that means more work for them.

Tingkai · February 25, 2003, 06:34

I've never forgiven the Conservatives for inventing the GST.

Remember how the Conservatives kept saying that it would be revenue-neutral. It would just replace some existing taxes, they said. Turns out it brought in an additional couple of billion of taxes a year.

MikeH · February 25, 2003, 06:38

Ideally I'd like to totally remove sales tax and raise all tax from incomes. That seems a lot fairer to me.

Skanky Burns · February 25, 2003, 06:43

Quote:

Originally posted by Urban Ranger
The GST is a bit high at 7%. If they cut it they might stimulate the economy somewhat.

Pffft.

10% in Australia.

Asher · February 25, 2003, 06:45

Does Australia have provincial sales taxes in the ~10% range that get added on top of that?

Urban Ranger · February 25, 2003, 06:47

Quote:

Originally posted by Tingkai
A bunch of idiot Hong Kong politicians want a sales tax here.

They figure if the government taxes everyone, including the poor and 16 million tourists a year, it will mean the rich won't have to pay more taxes.

The accountants love the idea because it means more paperwork, and that means more work for them.

What do you expect? We are ruled by idiots.

HershOstropoler · February 25, 2003, 06:48

Would this be a tax on all sales or final sales?

Some problems:

I doubt this rebate will create a progressive tax structure. So if you are not a fan of a flat tax, you may get fooled.

"Make American products more competitive at home and overseas. Encourage job-creation in America. Help reduce America's Trade Deficit."

I do not think this tax will have a big if any effect there. How should it?

"Used Goods and Education costs (ex: College Tuition)
are not subject to the FairTax."

So some tax subsidies will stay.

"Bring about a reduction of the cost of new goods and services by 20% to 30%."

A reduction? A sales tax may reduce the cost of wages, but that is slapped on at the final stage.

"yes but income tax is horrible in the U.S.
And there are so many exemptions."

A reform of income tax would be a better way.

HershOstropoler · February 25, 2003, 06:52

Another problem: it's effectively a consumption tax, so it subsidises saving. Another distortion.

MikeH · February 25, 2003, 06:59

VAT (the sales tax) is 17.5% in the UK. Doesn't apply to 'basic' food or childrens clothes or a couple of other things.

Skanky Burns · February 25, 2003, 07:02

Asher: No.

MikeH · February 25, 2003, 07:03

But no regional sales taxes in the UK.

Dauphin · February 25, 2003, 07:04

Quote:

VAT (the sales tax) is 17.5% in the UK. Doesn't apply to 'basic' food or childrens clothes or a couple of other things.

Like Jaffa Cakes. :yum:

DuncanK · February 25, 2003, 12:31

Quote:

Originally posted by Dissident
yes but income tax is horrible in the U.S.

And there are so many exemptions. Why should a woman with no self control get all kinds of tax credits for having 20 kids? screw that.

Not that anyone has 20 kids, but why shouldn't people get tax exemptions for raising kids. It's important work, and people need it.

tandeetaylor · February 25, 2003, 12:35

I showed a lack of restraint last year, and had me a baby, and I got me a big fat return check. Ha ha Dissident!

DuncanK · February 25, 2003, 12:37

National sales tax is just a gimic set up to shift the tax burden. Any rebate that would be included would just be a compromise. The wealthy would still end up benefiting at the expense of everyone else. It's their baby, and they aren't going to support it unless it benefits them. You don't see the democrates coming up with these things.

Sava · February 25, 2003, 12:56

This is a plan by Conservatives to shift the tax base so that the rich and corporations pay even less taxes.

Gangerolf · February 25, 2003, 13:30

VAT is 12% for food and 25% for other stuff here and still the income tax is high

ixnay · February 25, 2003, 13:32

I find sales taxes annoying enough when I go to other states. No way in hell I'd want to have to put up with one on a daily basis.

Jon Miller · February 25, 2003, 13:59

basd idea because it is regressive

only income or wealth shuold be taxed

Jon Miller

Provost Harrison · February 25, 2003, 14:58

I agree, there should be a movement towards more progressive taxation. Besides there is the confidence issue; a lower price tag is psychologically better, even if you are just taking money elsewhere...