1) I agree - government should be “pay-as-you-go”. Currently we have
deficits that we can never pay off. Our “surpluses” are the result of word
games and bookkeeping tricks that would land you and me in the pokey.
It’s bogus.
- The sales tax puts the government on a budget. Strictly “for the
calendar year X, income was $___ and expenses were $___.” Our entire
federal government would be forced to budget and make difficult
decisions - just as you and I must do.
2) Leaving food and necessities UNtaxed is equal for everyone - no
problem there. But leaving necessities untaxed would reduce the need
for welfare, with subsequent reductions in associated overhead
(bureaucracy, cheating, etc.).
3) The definition of “necessities” is largely settled already by the state
governments. By and large, the entire sales tax system is already
established, in place, and working. Food, medications prescribed by
doctors and veterinarians, toilet paper, etc. are necessities. Personally, I
would like to add electricity, water, sewage, garbage pickup, and basic
telephone service to “necessities” - but I’m open to (some!) suggestions.
4) Black markets and the underground economy would be little or no
problem. Sales tax is only on NEW items. If I buy a car, gun, TV, etc. I
pay the sales tax. Two years later, if I sell the item to you, it’s none of
the government’s business. It’s a private sale.
5) “How do we prevent the powers of taxation from steadily increasing
the rate over time?”
- The current system of taxation is so sneaky that we have no idea what
tax we are paying. For example:
-- The farmer includes the cost of his income tax and property tax into
his goods. Therefore, when we buy “untaxed” food, we also are paying
“hidden tax” (the farmer’s taxes) that we can not see.
-- The auto manufacturer pays property taxes, income taxes, and
employer taxes. The auto workers pay income taxes and must be paid
enough to pay those income taxes. These taxes are all costs to the auto
manufacturer. He must include those costs in the price of his goods - the
car. When you see the price of the car, all these taxes are already
hidden in the price. Then the government taxes that price so you are
paying tax on taxes. Again, that’s why it’s called a “hidden” tax!
-
A sales tax is always visible. Every taxpayer can see exactly
what his government is costing him. Congresscritters who spend
excessively would be voted out of office and be replaced with more frugal
representatives of the people. That’s how we control the RATE of
taxation.
6) “How do we prevent government from using this form of taxation to
alter behavior it doesn't approve of such as gun ownership, control of
electronic media like the internet, and other modes of assembly and free
speech?”
- A sales tax is a fixed percentage on ALL taxable goods and services.
The government can NOT play favorites and request a 10,000% tax on
ammunition as Senator Moynihan (D-NY) suggested. It is a flat
percentage for all taxable goods and services.
- The idea of eliminating the entire federal government, military, etc.
warrants little discussion - a suggestion apparently made in frustration.
7) “...Tax should be a tithe...Flat 10% income tax. Every one pays...
Rich or Poor. That is the only FAIR way to assess it.”
- Our current, graduated income tax system is totally unfair.
-- If you save your money, you are punished! You must pay tax on
interest earned which, in effect, is a fine or a penalty for being frugal.
You save money for your retirement and you are punished for your
efforts. Plus, you must pay tax on your entire income, including interest
earned.
-- If I go out and buy “toys”, I am rewarded! I make it part of my
business and get a tax break for “playing”. Don’t think this isn’t done. I
AM DOING IT! As a CHL/firearms instructor I “expense” every gun I buy
because both I and students use these gun in my CHL classes! Every
time I go to the range it is for teaching (generating income) or for
training, so I “expense” my mileage, ammo, range fees, membership
fees, etc.” Therefore, I pay less income tax.
-- Personal responsibility is punished and irresponsibility is rewarded.
That’s bogus!
- A flat income tax seems to have some appeal by remedying the above
situation. But is it the answer to our prayers?
-- With any kind of income tax, we end up paying the hidden taxes I’ve
already discussed. Therefore we end up paying tax we are not aware of
and can not evaluate. It does not hold the government responsible for
the money they collect from us or for the ways they spend our money.
-- The cost of necessities is kept artificially high because of hidden
taxation. This requires the government to operate an inflated welfare
system - government overhead which we must pay for. It makes you
and me pay for the welfare of people who get accustomed to being on the
government teat, generation after generation.
-- Income tax still can be manipulated by giving exemptions, exceptions,
deductions, etc. - violating the very concept of a “flat” tax.
8) “I am not going to pay 5 bucks for a gallon of freakin Milk.” Nor
would you have to - as I’ve repeatedly explained.
- Elimination of income tax would LOWER the price of your “gallon of
freakin milk”! Right now, included in the cost of your freakin milk, you
pay a portion of the following:
- the farmer’s income tax, property tax, unnecessarily expensive food
and necessities (with THEIR hidden taxes), etc.
- the trucker’s income tax, property tax, fuel tax, highway tax, and HIS
unnecessarily expensive food and necessities (with THEIR hidden taxes),
etc.
- the wholesaler’s income tax, property tax, etc. etc.
- the grocery store’s property tax, employment taxes, etc. etc.
- the cost of all the government bureaucracy necessary to establish,
implement, and enforce all these “freakin” taxes that we presently are
blissfully unaware of!
George, the cost of your “freakin milk” would drop dramatically! I can
not give you specific numbers. Nor can I tell you how hard the wind will
blow in a hurricane! But hurricanes blow! And so do hidden taxes. And
so does our current, complicated, treacherous, “freakin” system of
taxation which nobody (not even the head of the IRS) can figure out.
9) A sales tax is:
Equitable.
-- If you spend money on taxable items, there can be no favoritism.
-- Eliminating hidden taxes would lower the cost of ALL items.
-- Eliminating all the tax maneuvering would let businesses lower
overhead - resulting in lower prices for ALL items.
-- Why should a married couple pay more tax than two single people?
-- Why should you “pay” me to have kids? If I choose to have ten kids
and you choose to have two, why should I pay less tax?
-- Why should I pay less tax because I become 65 years old? It’s none
of the government’s business how old I am.
Easy to implement. The system is already in place.
-- The states just collect the money along with their own sales tax and
send in the fed’s portion.
-- Current auditing procedures for sales tax would suffice for any sales
tax. All that matters is, “What new goods and services did you sell? Pay
a percentage based on that figure.”
Cheaper - Less tax to pay.
-- Expensive federal overhead (eg IRS) would be eliminated - reducing
federal expenses and lowering our tax burden.
-- Congress would be forced by increased public scrutiny to reduce
frivolous spending. Less expense = less taxation.
-- Eliminating all taxation on necessities would reduce the cost of living
for ALL Americans. Welfare programs could be reduced, saving tax
money, reducing government overhead, reducing reliance upon welfare,
encouraging work and thrift, etc.
Encourages thrift. No more being fined, penalized, or taxes for saving
money or investing it wisely.
More private.
-- It’s nobody’s business what you earn. Even with a flat tax, the
government pokes into the personal affairs of every person and business
in America. That must stop!
-- Who cares if you deposit or withdraw $10,000? That’s none of the
government’s business? All they have to worry about is the business
who sells something.
-- Less infringement on individual rights. No IRS raids on people’s
homes.
-- No government “suspicion” that you are living “beyond your means”.
No more raids to see where you get your money. No more IRS audits
because there is NO income tax and NO IRS!
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