16 Oct 08
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial paycheck, so they are
inclined to buy more goods, even though it costs more. However, at the end of the year, people
at poverty levels will get some or all of it back (just like with income taxes).
I realize that Huckabee's actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
16 Oct 08
Originally posted by NemesioA federal sales tax would be a significant improvement over all the myriad taxes we currently have. Let's start with the good points:
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial pa ...[text shortened]... actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
*Eliminates the I.R.S. and the 25,000 pages of mumbo jumbo in the I.R.S. tax code.
*Eliminates other parasitic industries like tax lawyers and tax accountants and forces these displaced workers to get honest jobs.
*Eliminates the billions of dollars and man-hours required annually to prepare tax forms based on arcane tax codes that only the priest-kings of Babylon, or the I.R.S. can figure out.
*Since everyone pays the same percentage (except those at the bottom, who would get a tax credit), it's more equitable.
*Eliminates the need to hide or shelter wealth from the tax man.
*It would allow individuals to only have to spend 10 minutes preparing their taxes (which would consist of writing a check for the taxable amount and/or putting a stamp on single post card).
*Would capture more taxes from illegal aliens, terrorists and gangstas.
The bad points: I don't know any bad points since this, or similar systems are in play in Russia and many of the former Soviet Bloc countries and the governments there are seeing federal tax increases beyond anything they could have imagined.
16 Oct 08
Originally posted by NemesioIts the fair tax. I personally love it. It is a consumption tax.
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial pa ...[text shortened]... actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
16 Oct 08
If you want to see a true transaction tax, then take a look at the APT Tax. The tax rate would be somthing like .3% for each side of the transaction. With all the ups and downs in the stock market, the government would have made a killing over the past few weeks.
http://www.apttax.com/
16 Oct 08
4 edits
Originally posted by NemesioWhat is wrong with your proposed tax system is that the powers that be will have less revenue to work with. In addition, it would decrease the size of government. Both of these ideas are repugnant to people like McCain and Obama.
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial pa actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
I liked what Leona Helsmley once said. She said that only the "little people" pay taxes. In other words, the wealthy have the where with all to dance around tax loop holes. I know because I have talked to a few people wealthy individuals who know every trick in the book and those in Congress and government are no exception. In addition, the current system affords Uncle Sam to take and pocket your money for about a year or so before they decide to generously give it back to you. Who wouldn't like to have a stash of interest free money that is not yours for a year?
Really, I think those that are hurt the most are those upper middle class of society. It is just a system to keep the average Joe in his place. Obama and McCain would just assume keep the liberal cast system as it is.
BTW: People like Huckabee have no place in the Republican party. If he is serious about running for office again he needs to go libertarian or pick some other party to run in. Liberman had a similar problem in the Democratic party. He simply did not fit their mold any more of the powers that be so they would not nominate him, however, he went independent and won the election while thumbing his nose at the whole rotten lot of them. LOL.
16 Oct 08
Originally posted by whodeyAnother proponent of this kind of tax was Steve Forbes who was running for the presidency on the Republican ticket four years ago (or was it 8 years ago?). It does sound like a fair and simple way to go. It would eliminate the cheating and bring in more revenue.
What is wrong with your proposed tax system is that the powers that be will have less revenue to work with. In addition, it would decrease the size of government. Both of these ideas are repugnant to people like McCain and Obama.
I liked what Leona Helsmley once said. She said that only the "little people" pay taxes. In other words, the wealthy have th ...[text shortened]... dependent and won the election while thumbing his nose at the whole rotten lot of them. LOL.
16 Oct 08
1 edit
Originally posted by ale1552Mark my words, no presidential nominee from either party will EVER propose such a thing. NEVER!! It is runs counter to the powers that be in both respective parties. Huckabee and Forbes were both doomed the moment he let those fateful words come out of his mouth.
Another proponent of this kind of tax was Steve Forbes who was running for the presidency on the Republican ticket four years ago (or was it 8 years ago?). It does sound like a fair and simple way to go. It would eliminate the cheating and bring in more revenue.
16 Oct 08
Originally posted by NemesioIt's a tax with many advantages, notably the fact that it's quite hard to evade (if set up as a value added tax).
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial pa ...[text shortened]... actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
One criticism that's usually made against it is that it's a regressive tax. The richer you are, the higher the percentage of your income that you save, which means that, on an yearly basis, poorer families pay a higher percentage of their income on this tax than richer ones.
16 Oct 08
2 edits
Originally posted by NemesioIt wasn't HIS idea....We already have this in Canada. It's called the GST (Goods and Servcie Tax) and is paid regardless of where you purchase something in canada.
When Mike Huckabee was running against McCain, he proposed reducing income taxes but creating
a federal sales tax. Rather than a terraced tax system (which both McCain and Obama endorse,
though with different strata and schemes), this taxes purchases, of which rich folks make more.
According to Huckabee, everyone sees more (much more) in their initial pa actual plan was actually not solvent, but what's wrong with the idea in
principle?
Nemesio
Stupidly though, our CONSERVATIVE government actually reduced the GST and RAISED income taxes. Amazingly, they were just re-elected last week.
"Imagine how dumb the average person is. Just think, 50% of the population is dumber than that!"