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The Cato Institute has developed a national sales tax plan with the following four features:

* An 18 percent sales tax on all final use goods and services (this is not a retail sales tax) except housing and securities. Over time the rate would gradually decline to below 15 percent.
* Every American would receive an annual rebate on the tax paid on the first $5,000 of purchases. This would mean that for a family of four, the first $20,000 of consumption during the year would be tax free.
* The states--45 of which already have an income tax--would be responsible for collecting the national sales tax. (The federal government would reimburse the states for the cost of collection. This would not constitute an unfunded mandate.) With the states collecting the tax, the federal IRS police force would be largely disbanded. With the infrastructure of the income tax system dismantled, it would be very difficult for a new income tax to be reinvented.
* A two-thirds supermajority requirement in both houses to raise the sales tax or any other federal tax.

The national sales tax is the only plan that fixes all of the defects of the current income tax system. Here is how:

1. Because the sales tax exempts all savings and investment, the double taxation problem would be eliminated. Because the sales tax is a single flat rate, the disincentive effects from high marginal rates would be eliminated. That giant sucking sound you would be hearing would be investment capital from across the globe sweeping into the United States.
2. By eliminating the income tax entirely, compliance costs- -estimated at $200 billion a year--would be substantially reduced.
3. The sales tax would virtually eliminate the Internal Revenue Service. The sales tax is the only plan that solves the intrusiveness of the current system.
4. A sales tax would be paid by consumers every time they purchased a good or service at the cash register. Because the tax would appear on the receipt, the sales tax would be highly visible to taxpayers. All purchases--from an 89 cents grape slurpee at seven-11 to a $20,000 Ford Bronco--would be taxed. Taxpayers would be constantly reminded of what a hefty price we pay for government in America today.

AZGrizFan wrote:Here's a novel concept: How about we just stop spending so much **** money?

AZGrizFan wrote:Here's a novel concept: How about we just stop spending so much **** money?

AZGrizFan wrote:Here's a novel concept: How about we just stop spending so much **** money?

MarkCCU wrote:How about the government pays taxes on everything it buys, make initiatives to bring and keep businesses in the USA, we increase the sin tax, give breaks to the Middle Class, spend more on Education, streamline the DoD, SSA and the other forgotten problems.

native wrote:

MarkCCU wrote:How about the government pays taxes on everything it buys, make initiatives to bring and keep businesses in the USA, we increase the sin tax, give breaks to the Middle Class, spend more on Education, streamline the DoD, SSA and the other forgotten problems.

Are you being sarcastic, or serious?

MarkCCU wrote:

native wrote:
Are you being sarcastic, or serious?

A little of both, why? Do you have a serious or sarcastic comment?

native wrote:

MarkCCU wrote:
A little of both, why? Do you have a serious or sarcastic comment?

Mark, I don't want to pick on you. I just wanted to understand where you were coming from. I can see now that some elements are farcical and some are serious.

So, my response to your original post is, "same old, same old is not going to do the job."

Pwns wrote:As long as they only go after those evil tobacco users, alcohol drinkers, and junk food eaters then I'm okay with it!

bobbythekidd wrote:They are not doing away with the Income Tax, but just adding a VAT to it. Unlike the Tax plan that Col Hogan posted from the Cato Institute this is hugely regressive and over burdens the lower and middle classes. ...and AZ, they are wanting to use this new VAT to fund expanses in Heath Care.

MarkCCU wrote:...Pick on me? HA HA HA! That's good.

MarkCCU wrote:...Think about this, The government spend billions of dollars on Defense. Aside from labor costs, the gov't money used by a company to research, build or purchase products is not taxed. If the gov't paid taxes, it would essentially recover vast amounts of money. They don't pay taxes, and therefore, pay higher prices. Don't believe me? There is a company called Base-X, which builds portable shelters and thier accessories. There are two types of pricing, one is for state governments and private entities. The other is GSA aka Gov't pricing, and is sometimes $1,000's higher than "retail". Dell, Panasonic, APC, DRS Technologies, etc.. all charge the gov't more. ...

native wrote:

MarkCCU wrote:...Pick on me? HA HA HA! That's good.

I know you can hold your own and are not some fragile wall flower. It's just that I tire of the constant pissing contests which usually lack entertainment value. I admit that sometimes I give in to temptation and piss on someone's leg, and that some posters such as BlueHen and a handful of others actually work hard and consistently succeed in providing a little humor. But overall, people too often just piss and shout to no useful purpose.

MarkCCU wrote:...Think about this, The government spend billions of dollars on Defense. Aside from labor costs, the gov't money used by a company to research, build or purchase products is not taxed. If the gov't paid taxes, it would essentially recover vast amounts of money. They don't pay taxes, and therefore, pay higher prices. Don't believe me? There is a company called Base-X, which builds portable shelters and thier accessories. There are two types of pricing, one is for state governments and private entities. The other is GSA aka Gov't pricing, and is sometimes $1,000's higher than "retail". Dell, Panasonic, APC, DRS Technologies, etc.. all charge the gov't more. ...

I think your math and some of your assumptions are flawed. In the first place, the additional taxes you propose are not consistent with the "leaner" and "smarter" taxes you espouse. In the second place, you are not accounting for the inherent inefficiency of the administrative fees the government must charge to collect your new taxes. Finally, federal contractors pay sales taxes like everyone else on the things they buy and own. The only taxes not paid are on items purchased on behalf of the federal government and owned by the federal government.

There may be instances of surplus or differently configured items which are cheaper than GSA schedule, but a company cannot retain its GSA schedule if it does not provide the feds the best price for identically configured and packaged items. Please provide a specific example with links if you think you can prove otherwise.

citdog wrote:A NATIONAL SALES TAX, IN LIEU OF THE INCOME TAX, WOULD BE AN EXCELLENT IDEA.......FINALLY THESE ILLEGAL MEXICANS WOULD PAY SOME TAX INSTEAD OF LIVING LIKE SUBHUMAN LEECHES OFF THE LABORS OF OTHERS.

catamount man wrote:

citdog wrote:A NATIONAL SALES TAX, IN LIEU OF THE INCOME TAX, WOULD BE AN EXCELLENT IDEA.......FINALLY THESE ILLEGAL MEXICANS WOULD PAY SOME TAX INSTEAD OF LIVING LIKE SUBHUMAN LEECHES OFF THE LABORS OF OTHERS.

Mexicans do work. I can take you to plenty of other places in Greenville and show you folks not working and they speak english.

citdog wrote:A NATIONAL SALES TAX, IN LIEU OF THE INCOME TAX, WOULD BE AN EXCELLENT IDEA.......FINALLY THESE ILLEGAL MEXICANS WOULD PAY SOME TAX INSTEAD OF LIVING LIKE SUBHUMAN LEECHES OFF THE LABORS OF OTHERS.