"republican Plan Push For Elimination Of Irs"

HAMBone

<div class="IPBDescription">the new freedom</div> <a href='http://www.drudgereport.com/rnc.htm' target='_blank'>"Republican plan push for elimination of IRS" - <a href='http://www.drudgereport.com/rnc.htm' target='_blank'>http://www.drudgereport.com/rnc.htm</a></a>

This plan has been around for years, it looks like they may finally give it a go, let me tell you how it works. First, there will be a left-right debate, and they will agree not to completely remove the income tax, but instead they will lower the income tax to a flat rate of something like 8% to pay for social security, fica, medicare and medicaid. Then they will put in a national sales tax of 0-30% based on your income. To check your income, you will need to swipe your driver's liscence(eventually national id card, then RFID chip) at every purchase. This means that the federal government will be involved in every purchase, able to monitor every purchase, even cash purchases. Since most states claim to rely pretty heavily on their income taxes and sales taxes(their own <a href='http://www.cafrman.com/' target='_blank'>Comprehensive Annual Financial Reports</a> disagree) it should be noted that the federal sales tax will be on top of the existing state income and sales taxes.

As for internet taxes, the states are already getting together a "national union" to <a href='http://www.internetnews.com/ec-news/article.php/3289331' target='_blank'>tax internet sales</a>, which will go forward soon, with or without a federal sales tax. The federal sales tax will apply to internet sales, but again this will be on top of a state internet sales tax.

Then, of course, our nation will be faced with a <b>PROBLEM</b>, in the form of a "national security emergency" or an "attack" or a "war", then the public will have a <b>REACTION</b>, most likely fear and confusion, then our loving government will offer us the <b>SOLUTION</b>, which will usually be a whole bunch of new legislation, including further removal of civil liberties and more relevant to this post, an increase in the federal flat income tax to a level which I cannot predict, if I had to guess I'd say 30%. Then, of course, the parties can go back to pretending they are on different sides, raising or lowering the federal income and sales tax rate by a nominal 2 or 3 percent and then pretending its a huge deal and having big debates about it etc etc.

On the topic of general federal income tax, not related to the above post, some of you may find this site interesting: <a href='http://anon.taxableincome.speedera.net/861Evidence/index.html' target='_blank'>http://anon.taxableincome.speedera.net/861...ence/index.html</a>

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ekent

Two things:

1) I have really significant doubts that any major overhaul like this would go through. Consider the difficulty the GOP had during the mid ninties with even getting a flat tax initiative onto the debate table (difficulty within their own party).

2) Wouldn't a federal sales tax be unconstitutional considering the division of powers? (Viz. regulation of inter-state commerce etc.)

Zel

this sort of switch is impossible in any short period of time. the rollout costs of forcing people to swipe national ID cards at every possible sale position would be enormous. with a cosst that high it couldnt happen overnight, like such a change would require, to forego lengthy paperwork tax returns yearly for those sales which do not use the electronic ID cards.

Windelkron

WTH? since when did republicans favor the government knowing about every purchase you make?
and a flat tax? get outta here.
republicans should stick to whatever plan they had when reagan was in office. stop making new ideas, they don't work.

Hida_Tsuzua

While such a bill could be passed especially considering how nearly everything is considered interstate trade today, the chances of it passing are far too unlikely. The biggest problem is that the current tax code was to promote nearly every interest there is so nearly all of them would be against it. Personally I'll just like a simple progessive tax rate with deductions either removed or phase out extremely high (such at $1 million a year).

Spooge

Hmm. Let's ask ourselves this:
If a national sales tax would mean the federal government knows about each of our purchases, does that mean States that have sales taxes know about each of the purchases their citizens make?

And how do these States collect their taxes from purchases? Is it from your State issued driver's license?