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Re: [msfairtax] George Will on the FairTax.

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  • dpleblanc.ms
    I am very much in favor of the national sales tax because I believe that the Federal gov t should not penalize a person for being successful and generating
    Message 1 of 4 , Apr 1 6:28 AM
      I am very much in favor of the national sales tax because I believe that the Federal gov't should not penalize a person for being successful and generating more income for themselves and their family. The current tax system does just that.
       
      However, the only question I have at this point about the national sales tax is what will prevent people from spending their money outside of this country where the cost of goods without this added tax will be cheaper?
       
      David 
      ----- Original Message -----
      Sent: Thursday, March 31, 2005 9:54 AM
      Subject: Re: [msfairtax] George Will on the FairTax.

      Genie, I forwarded this excellent article to Congressman Gene Taylor, Mississippi. For some reason (D) he is apposed to the Fairtax proposal. Perhaps this will cause some movement in the right direction. Ask our group to ad Mr. Taylor to their list of contacts. Thanks,
      Billy Wilks
      ----- Original Message -----
      Sent: Thursday, March 31, 2005 5:54 AM
      Subject: [msfairtax] George Will on the FairTax.



      http://www.townhall.com/columnists/georgewill/printgw20050331.shtml

      A National Sales Tax
      George Will

      March 31, 2005


      WASHINGTON -- The power to tax involves, as Chief Justice John
      Marshall said, the power to destroy. So does the power of tax
      reform, which is one reason why Rep. John Linder, a Georgia
      Republican, has a 133-page bill to replace 55,000 pages of tax rules.

      His bill would abolish the IRS and the many billions of tax forms it
      sends out and receives. He would erase the federal income tax
      system -- personal and corporate income taxes, the regressive
      payroll tax and self-employment tax, capital gains, gift and estate
      taxes, the alternative minimum tax and the earned income tax credit -
      - and replace all that with a 23 percent national sales tax on
      personal consumption. That would not only sensitize consumers to the
      cost of government with every purchase, it would destroy K Street.

       ``K Street'' is shorthand for Washington's lawyer-lobbyist complex.
      It exists to continually complicate and defend the tax code, which
      is a cornucopia from which the political class pours benefits on
      constituencies. By replacing the income tax -- Linder had better
      repeal the 16th Amendment, to make sure the income tax stays gone --
      everyone and all businesses would pay their taxes through economic
      choices, and K Street's intellectual capital, which consists of
      knowing how to game the tax code, would be radically depreciated.

           Under his bill, he says, all goods, imported and domestic,
      would be treated equally at the checkout counter, and all taxpayers -
      - including upward of 50 million foreign visitors annually -- would
      pay ``as much as they choose, when they choose, by how they choose
      to spend.'' And his bill untaxes the poor by including an advanced
      monthly rebate, for every household, equal to the sales tax on
      consumption of essential goods and services, as calculated by the
      government, up to the annually adjusted poverty level.

           Today the percentage of taxpayers who rely on professional tax
      preparers is at an all-time high. The 67 percent of tax filers who
      do not itemize may think they avoid compliance costs, which include
      nagging uncertainty about whether one has properly complied with a
      tax code about the meaning of which experts differ. But everyone
      pays the cost of the tax system's vast drag on the economy.

           Linder says Americans spend 7 billion hours a year filling out
      IRS forms and at least that much calculating the tax implications of
      business decisions. Economic growth suffers because corporate boards
      waste huge amounts of time on such calculations rather than making
      economically rational allocations of resources. Money saved on
      compliance costs would fund job creation.

           Corporations do not pay payroll and income taxes and compliance
      costs, they collect them from consumers through prices. So the 23
      percent consumption tax would allow taxpayers to stop paying the
      huge embedded cost of corporate taxation. Linder says the director
      of the Congressional Budget Office told him it costs individuals and
      businesses about $500 billion to remit $2 trillion to Washington.
      And studies show that it costs the average small business $724 to
      collect and remit $100.

           In 1945, corporations paid more than one-third of the
      government's revenues. Now they pay only 11 percent because
      corporations, especially multinationals, are voluntary taxpayers. In
      a world increasingly without borders that block capital movements,
      corporations pay where the burden is lowest. Linder says $6 trillion
      in offshore accounts would have an incentive to come home under his
      plan.

           Furthermore, by ending payroll and corporate taxes, America
      would become the only nation selling goods with no tax component --
      such as Europe's value added tax -- in their prices. With no taxes
      on capital and labor, multinationals would, Linder thinks, stampede
      to locate here, which would be an incentive for other nations to
      emulate America. ``This,'' Linder says, ``would unleash freedom
      around the globe.''

      Critics argue that ending the income tax, with its deductibility of
      charitable contributions, would depress giving. Linder says: Piffle.
      In 1980, when the top personal income tax rate was 70 percent, a
      huge incentive for giving, individual charitable contributions were
      $40.7 billion. In 1986 the top rate was reduced to 28 percent, and
      by 1988 charitable giving was $86.7 billion. The lesson, says
      Linder, is that we give more money when we have more money.

           When Speaker Dennis Hastert published a book last year, he was
      startled that interviewers were most interested in talking about
      Linder's bill, which then had 54 co-sponsors. This year Hastert
      added Linder to the Ways and Means Committee. Linder cheerfully says
      his bill would reduce Ways and Means to ``a B committee'' by ending
      the political fun of making the tax code ever more baroque for the
      benefit of K Street's clients. Bliss.











    • Billy Wilks
      David, If you receive an explanation to your concern, please share it with me. My thinking is that purchases made outside this country would not only have the
      Message 2 of 4 , Apr 6 7:57 AM
        David, If you receive an explanation  to your concern, please share it with me. My thinking is that purchases made outside this country would not only have the sales tax added, but would also be subject to additional tax.
        Billy
        ----- Original Message -----
        Sent: Friday, April 01, 2005 9:28 AM
        Subject: Re: [msfairtax] George Will on the FairTax.

        I am very much in favor of the national sales tax because I believe that the Federal gov't should not penalize a person for being successful and generating more income for themselves and their family. The current tax system does just that.
         
        However, the only question I have at this point about the national sales tax is what will prevent people from spending their money outside of this country where the cost of goods without this added tax will be cheaper?
         
        David 
        ----- Original Message -----
        Sent: Thursday, March 31, 2005 9:54 AM
        Subject: Re: [msfairtax] George Will on the FairTax.

        Genie, I forwarded this excellent article to Congressman Gene Taylor, Mississippi. For some reason (D) he is apposed to the Fairtax proposal. Perhaps this will cause some movement in the right direction. Ask our group to ad Mr. Taylor to their list of contacts. Thanks,
        Billy Wilks
        ----- Original Message -----
        Sent: Thursday, March 31, 2005 5:54 AM
        Subject: [msfairtax] George Will on the FairTax.



        http://www.townhall.com/columnists/georgewill/printgw20050331.shtml

        A National Sales Tax
        George Will

        March 31, 2005


        WASHINGTON -- The power to tax involves, as Chief Justice John
        Marshall said, the power to destroy. So does the power of tax
        reform, which is one reason why Rep. John Linder, a Georgia
        Republican, has a 133-page bill to replace 55,000 pages of tax rules.

        His bill would abolish the IRS and the many billions of tax forms it
        sends out and receives. He would erase the federal income tax
        system -- personal and corporate income taxes, the regressive
        payroll tax and self-employment tax, capital gains, gift and estate
        taxes, the alternative minimum tax and the earned income tax credit -
        - and replace all that with a 23 percent national sales tax on
        personal consumption. That would not only sensitize consumers to the
        cost of government with every purchase, it would destroy K Street.

         ``K Street'' is shorthand for Washington's lawyer-lobbyist complex.
        It exists to continually complicate and defend the tax code, which
        is a cornucopia from which the political class pours benefits on
        constituencies. By replacing the income tax -- Linder had better
        repeal the 16th Amendment, to make sure the income tax stays gone --
        everyone and all businesses would pay their taxes through economic
        choices, and K Street's intellectual capital, which consists of
        knowing how to game the tax code, would be radically depreciated.

             Under his bill, he says, all goods, imported and domestic,
        would be treated equally at the checkout counter, and all taxpayers -
        - including upward of 50 million foreign visitors annually -- would
        pay ``as much as they choose, when they choose, by how they choose
        to spend.'' And his bill untaxes the poor by including an advanced
        monthly rebate, for every household, equal to the sales tax on
        consumption of essential goods and services, as calculated by the
        government, up to the annually adjusted poverty level.

             Today the percentage of taxpayers who rely on professional tax
        preparers is at an all-time high. The 67 percent of tax filers who
        do not itemize may think they avoid compliance costs, which include
        nagging uncertainty about whether one has properly complied with a
        tax code about the meaning of which experts differ. But everyone
        pays the cost of the tax system's vast drag on the economy.

             Linder says Americans spend 7 billion hours a year filling out
        IRS forms and at least that much calculating the tax implications of
        business decisions. Economic growth suffers because corporate boards
        waste huge amounts of time on such calculations rather than making
        economically rational allocations of resources. Money saved on
        compliance costs would fund job creation.

             Corporations do not pay payroll and income taxes and compliance
        costs, they collect them from consumers through prices. So the 23
        percent consumption tax would allow taxpayers to stop paying the
        huge embedded cost of corporate taxation. Linder says the director
        of the Congressional Budget Office told him it costs individuals and
        businesses about $500 billion to remit $2 trillion to Washington.
        And studies show that it costs the average small business $724 to
        collect and remit $100.

             In 1945, corporations paid more than one-third of the
        government's revenues. Now they pay only 11 percent because
        corporations, especially multinationals, are voluntary taxpayers. In
        a world increasingly without borders that block capital movements,
        corporations pay where the burden is lowest. Linder says $6 trillion
        in offshore accounts would have an incentive to come home under his
        plan.

             Furthermore, by ending payroll and corporate taxes, America
        would become the only nation selling goods with no tax component --
        such as Europe's value added tax -- in their prices. With no taxes
        on capital and labor, multinationals would, Linder thinks, stampede
        to locate here, which would be an incentive for other nations to
        emulate America. ``This,'' Linder says, ``would unleash freedom
        around the globe.''

        Critics argue that ending the income tax, with its deductibility of
        charitable contributions, would depress giving. Linder says: Piffle.
        In 1980, when the top personal income tax rate was 70 percent, a
        huge incentive for giving, individual charitable contributions were
        $40.7 billion. In 1986 the top rate was reduced to 28 percent, and
        by 1988 charitable giving was $86.7 billion. The lesson, says
        Linder, is that we give more money when we have more money.

             When Speaker Dennis Hastert published a book last year, he was
        startled that interviewers were most interested in talking about
        Linder's bill, which then had 54 co-sponsors. This year Hastert
        added Linder to the Ways and Means Committee. Linder cheerfully says
        his bill would reduce Ways and Means to ``a B committee'' by ending
        the political fun of making the tax code ever more baroque for the
        benefit of K Street's clients. Bliss.











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