If you are interested in low taxs why havn't you pushed the true low tax known as The Fair Tax HR25?

Answer 1

Politicians will never vote for it because elimination of corporate income taxes would significantly reduce the need for lobbying.

To Bostonian... - You ARE paying corporate taxes embedded into the price of all goods. Car manufacturers would have to lower the price of a car that costs $20,000 today in case the scenario with Fair Tax is implemented and they do not have to pay corporate income taxes. If they do not pass the majority of the savings to the consumer - their competitors will. Your attitude of not willing to pay extra $6000 for the same car is the precise reason why they would be ill advised to try to retain all savings to themselves. Majority of consumers would not be willing to start paying extra %30 on the price of goods.
However, if companies do not have to worry about income taxes, they would be free to make business decisions based on the economic sense and not be concerned about tax consequences. Companies could reduce their payroll by eliminating jobs of those calculating corporate taxes. The IRS could be significantly reduced and the cost of collecting the tax would be lower.
The tax base would increase since those who cheat on reporting their income would automatically pay taxes as they purchase goods.
The Fair Tax would lower the economic incentive for illegals to come to USA because they would be excluded from the prebate program, and they would have to pay tax on all purchased goods.

Answer 2

of direction no longer! concern no longer regardless of the undeniable fact that, no person will ever might desire to enhance a pen to veto it. HR25 has died in techniques & ability (the place all expenditures flow upon preliminary submission interior the residing house) each Congressional consultation for the previous 12 years for extremely solid reason: that's a awful piece of law. It replaced into never meant to work out the sunshine of day in open debate on the floor of the residing house. that's sole purpose is political posturing so as that uninformed n00bs in Congress can flow lower back to their parts and proclaim, "i'm attempting to restoration Washington, yet no person will act!" If it ever made it out of techniques & ability in might die an ignominious dying on the floor of the residing house, and the sponsors and the Speaker of the residing house might all look like fools. in contrast to maximum law, a matching invoice has never been presented interior the Senate. That on my own might desire to tell you some thing.

Answer 3

For the average person, their total taxes would go up under the so called "Fair"tax. Just calling it "Fair" does not make it so. Only people with incomes over $200k per year would see their taxes go down with the Fairtax. How "Fair" is that?

Answer 4

Because it would NOT lower taxes for the typical taxpayer, that's why! The wealthy would get a massive tax break since they tend to hang on to their wealth and only spend a small portion of it every year -- the odd Paris Hilton type excepted maybe. But the average taxpayer spends most of their income each year and would pay FAR higher in total tax with that heinous 30% sales tax.

Since you'd be giving a break to the wealthy you'd have to transfer the burden to the poor and middle classes. If you're wealthy, congrats, I'm happy for you. But I'll be DAMMNED if I'm going to pay another $13,000 in taxes just so you can have a multi-million $$$ break on yours!

Consider buying a new $200,000 home. You'd have to pay $60,000 in TAX on top of the purchase price. Considering that most folks would have to roll that into the mortgage they'd eventually pay double that amount. Or imagine registering a new $20,000 car and having to pay an additional $6,000 in tax just to get your tags. That's on top of whatever you're paying now.

Fair Tax? Hardly! There's a damned good reason why this foolishness has languished in committee for nearly a decade. It has ZERO chance of ever making it to a floor vote. A few politicians keep it alive in committee for purely political reasons. They get to say to their constituents -- usually very wealthy ones at that -- "Hey, look, I'm trying to change things but they won't let us vote on it!" Pure politics. Nothing more! If you're not wealthy, don't be suckered in by this ploy. And if you are wealthy, give up on it and don't be a pawn for some politician's personal agenda.

Here's some of what I've posted previously on this absurdly expensive mess. You can throw all of the "tumbs downs" that you wish but that won't change the fact that the "Fair Tax" is a terrible idea both for the country and for the average taxpayer.

Quote:

"It would be a terrible deal for the poor and middle classes. It would be a massive break for the wealthy.

Proponents of the mis-named Fair Tax assume that the wealthy spend all of their money. This is an exceptionally naive assumption. The wealthy are wealthy because they hang on to their money, not spend it! (OK, the odd Paris Hilton excepted.) The truth is that the poor spend virtually every penny they get covering basic necessities. The middle class may live better but they do spend most of their income on necessities and "conspicuous consumption" items. The wealthy on the other hand spend a tiny fraction of their holdings and would therefore pay a substantially lower portion of their total income and pay less tax proportionally.

The Fair Tax is a massively expensive national sales tax, levied at 30%. That's on top of existing state and local sales taxes. Those state and local taxes run as high as 8.75% to 10% in some areas. So, if you bought a new $200,000 home you'd pay an additional $60,000 tax on top of the purchase price. Or if you bought a new $20,000 car you'd pay an additional $6,000 just to get your tags.

Even with the so-called "prebate" that is supposed to cover the tax on basic necessities the tax levy of the typical American would rise substantially. Additionally there would be massive fraud on the prebate that would require that the IRS would have to track the composition of family units in real time because the prebate is not a flat per-citizen payment.

Black marketing activity to attempt to avoid the tax would negate the touted benefit of extracting tax dollars from the underground economy such as criminals, illegals, etc. It would just generate a new class of tax cheat: The average American. This would lead to draconian new laws as the government attempts to combat illegal black marketing activity. Imagine an IRS field audit at your home, digging through your underwear drawer looking for the tax stamps on your gruns or digging through your trash looking for untaxed Cocoa Puffs boxes.

The current tax code does need some cleaning up, no question about that. The AMT needs to be re-set to 1969 inflation adjusted dollars and then permanently indexed to inflation. Capital gains taxes need to be graduated just like the basic income tax is -- they can still be taxed at a lower rate to encourage investment but even Warren Buffett agrees that he pays too little tax because of the way they're taxed now.

What we DON'T need to do is to collapse the economy with the "Fair Tax" and that is exactly what would happen -- the new housing industry would collapse overnight, as would the auto industry and other big-ticket industries. The fallout from the loss of jobs would quite literally trigger another Great Depression and lead to widespread public unrest. No thanks!

As soon as any politician goes on board with the "Fair Tax" or "Flat Tax" they are stricken from my list of people I'm willing to expend a vote on. I don't begrudge the wealthy what they have, but I'm NOT ready to give away the farm for their further benefit."

Unquote

Note to "nosf..." There is NO requirement that manufacturers lower prices due to the removal of corporate income taxes. They could if they wanted to but more than likely their shareholders would resist that move in favor of larger potential profits. More importantly, that would ONLY apply to American made goods. Foreign goods manufacturers still pay taxes in their home countries and the "Fair Tax" makes no provision for that. Most likely other nations in the WTO would raise a hissy fit that the "Fair Tax" gave US manufacturers an unfair competetive advantage both in the US and overseas which would force either manufacturers to keep their prices artificially high or the government to impose new excise taxes on all US goods to keep imports competitive. You always have to watch out for the "Law of Unintended Consequences" when you push for major changes. Obviously you have not thought it through fully.