Muscatine

 

Not the way I hope this thread would go, but what the heck.

We are so used to having our federal income tax, social security and medicare taxes withheld from our paycheck, most of us don't realize there are efforts to change this dramatically. There is a group going around saying that we should pay 23 cents on every dollar we spend in a federal sales tax. They must be crazy!

Wait a minute. If we are going to pay a sales tax to cover our income and social security tax, we won't have anything except our state and local taxes coming out of our pay. Even that doesn't add up to 23%. What are they talking about?

What if they told you that, not only would you not have federal and social security taxes withheld from your paycheck, you would see the following things happen:

*Elimination of the Internal Revenue Service, saving an estimated $420 billion annually
*April 15th would be just another day
*You would not have tax records to keep BECAUSE YOU WOULD NOT HAVE TO FILE INCOME TAXES
*And, no forms, no deadlines, no prepayments, no penalties, no audits, and never again an abusive IRS that can claim your assets without due process!
*Even illegal income would be taxed when it is spent
*Only new items will be taxed
*No American will pay taxes on necessities
*Cost of goods and service are estimated to decrease by 20% to 30% because manufactures and other companies will not be required to pay taxes (TAXES WILL ONLY BE PAID ON NEW MERCHANDISE AT THE RETAIL LEVEL)
*No tax on ANY investments
*Each taxpayer will receive a rebate equal to the taxes paid on necessities such as groceries and medicine, in advance of those purchases
*Seniors and low income families would be protected

This list could go on and on about the advantages of a National Sales Tax. The truth is that our current system of taxation is totally out of control. The 10s of thousands of pages of tax laws have even the best tax minds confused.

http://www.savingadvice.com/forums/taxes/781-23-percent-federal-sales-tax-but-wait.html

 

It's a bad idea. We have an income distribution system that has the disadvantaged - you know the whole tax brackets thing. People who make a fortune don't need it, and they wouldn't spend it if the only taxes were sales taxes. People who don't make much will have to pay 23% more for milk, gas, etc. Right now they don't pay as much in taxes, because they don't have as much, but with a system like that it doesn't exactly work. Proposals have included given them sales tax rebate checks, but then we have even more people completely dependent on monthly government checks. Plus, how do we pay for that if we aren't taxing everyone else more?

Now I don't want to get into too much of a debate about the merits of a tax system we have. Some people think everyone should be taxed at the same rate, but any economist or person of some intelligence would disagree. People with a lot of money would just keep their money and use it to take advantage of people with less (fuedal system, caste system, middle age Europe, anybody remember?) The system we have is the most fair system because it gives the people who start out with less a better chance to get ahead through hard work. We don't need a system where the poor will stay poor no matter how hard they work - but that is encouraged by a flat tax system because the rich will abuse their power to keep the status quo. A large part of our democracy depends on this system.

Illegal income will also not be taxed. Why? Because the money does not stay in this country, doesn't anybody know that? Income earned from drug dealing is usually mostly smuggled back to the country of origin. And it would not be that difficult for a person/business to buy stuff for 'resale' and have it dissapear. We'd need some kind of government system to prevent that (hence the IRS).

the federal income tax is only used to pay back our ever increasing debt. not one penny goes to services. income tax has been proving to be illegal. the have NO law requiring you to pay. check into it. IRS agent have quit and do not file income tax, they tried to find the law and could not. the supreme court has said that the constitution does not allow new taxes to be levied. check it out. to tax the people for their labor, basically pentalizing you for making money. read the constitution. ron paul in 08'