National Sales Tax Vs. Federal Income Tax?

[scrapwave]

http://www.lemarssentinel.com/story/1066151.html

Anyone have any opinions on this??? I honestly don't see how it could work. I heard something about it on channel 5 news and netsearched and this was one of the articles I came up with regarding the national tax vs. income tax argument.

[utdbear]

I don't see how it could get more difficult than the 6000+ pages of the tax code we have now.

[BloodofJason]

This is not a good idea, think about all the retired people on a fixed income that dont pay taxes right now.

Also think about the car you want to buy right now and that house. They are now priced out of your range. Also if you work under the table right now or if you don't live in america and visiting guess what you now pay income tax in AMERICA..

[scrapwave]

you don't live in america and visiting guess what you now pay income tax in AMERICA..hmmm, that thought didn't occur to me but good point! The article does say that Social Security income would be exempt, as would business expense related purchases, and adjustments for poverty level incomes, etc....but how would they keep track of all that without some type of reporting???
Example: How do they know I spent $950 for mechanical repairs or tires on the Kenworth truck we own (which according to the article would NOT be taxed)rather than $950 for repairs or tires on my personal vehicle which would be taxed?? I just don't see how it would work.

[TexasDevilDog]

I like a national sales tax. It makes paying taxes more elective. It encourages investment and dicourages consumption, which is a yea for the enviornment people. It taxes foreign companies that sell suff here. This will level the playing field for companies that product here versus companies overseas.

I don't like the 23% that is in the proposal, which is most likely the only taxing the consumption level. That would leave companies with big loop hole to buy stuff as company assets and let the boss use them. Nope. Change that 23% to 10% and make companies pay taxes on production material and such. This would cut down on the number of people in supply chains, no middle man companies, and increase efficiency in the economy.

[BloodofJason]

How about we pay no taxes, and make the government get a job.

[shrp88lx's]

This is not a good idea, think about all the retired people on a fixed income that dont pay taxes right now.

Also think about the car you want to buy right now and that house. They are now priced out of your range. Also if you work under the table right now or if you don't live in america and visiting guess what you now pay income tax in AMERICA..
try this one:

www.fairtax.org

[BloodofJason]

It this passes I probably wont buy as much stuff anymore.

[KJ94GT]

Also think about the car you want to buy right now and that house. They are now priced out of your range. Also if you work under the table right now or if you don't live in america and visiting guess what you now pay income tax in AMERICA..

Um, getting paid under the table is technically illegal now. So how can you argue that? Also, it would also be a tax on illegal immigrants who work here.

[scrapwave]

It this passes I probably wont buy as much stuff anymore.I'm sure that would be a general consensus among most people...myself included...but then wouldn't that just leave the government with LESS money than they anticipated...and would they not then raise the rate even higher? Obviously there are some things that a consumer MUST buy. But a lot of "unneccessary" spending would probably come to a grinding halt...leaving the gov't with LESS money. For example...the article I posted says that NEW vehicle sales would be taxed...but used vehicle sales would NOT be taxed. How many people will by NEW cars and pay the 23% sales tax when they can buy one a year old with a few miles and save that 23%? So by that example, automakers are going to have to cut back on production therefore that means job cuts. So how does the claim that more jobs would be created hold up? Just seems to me that overall a national tax would do far more harm to the economy.

[Danny]

It this passes I probably wont buy as much stuff anymore.That's a crock of shit. You'll have ~24% more income to spend (or whatever your tax rate is), and you'll gladly pay a sales tax when you have that much more disposable income. And if you decide not to spend it, that money is YOURS TO KEEP and save as you see fit.

I'm all for it. It encourages fiscal responsibility, simplifies the scary tax code, and eliminates a HUGE amount of administration within the government.

[scrapwave]

That's a crock of shit. You'll have ~24% more income to spend (or whatever your tax rate is), and you'll gladly pay a sales tax when you have that much more disposable income. And if you decide not to spend it, that money is YOURS TO KEEP and save as you see fit.

I'm all for it. It encourages fiscal responsibility, simplifies the scary tax code, and eliminates a HUGE amount of administration within the government.I can understand your point..but at the same time...you would be keeping your money and deciding how you would spend it correct? Ok, let's say you are looking to buy a house. You can buy a BRAND NEW house and pay appx. 30% sales tax (because the proposed federal tax is 23% and there is still a state sales tax of 8.25%) or you can buy a house that is a couple of years old and only pay state sales tax for the purchase price of that house. Wouldn't most people opt to keep more of their money and buy a less than NEW house? That would be my choice....keep more of my money. If that was true of most people, then jobs would be cut in the homebuilding industry as people look to purchase preowned homes rather than new. And the government will be getting shorted tax dollars they are counting on to make the new system work.

Like I said, this is just my take on the new tax proposal...I can't say I am definitely against it....it just seems to me that it could create a whole lot of new problems with funding the government...does that make sense?

[NoSlix]

The government encourages home ownership. My guess is that there would be a clause in the tax code making home purchases tax free, as well as reduced tax rates on automobile purchases.

[TexasDevilDog]

The government encourages home ownership. My guess is that there would be a clause in the tax code making home purchases tax free, as well as reduced tax rates on automobile purchases.

Now it starts, mudding up the tax code with loop holes, we'll be back to 6,000 pages in no time.