National Retail Tax on Purchases Needs Consideration from Obama

By Sugarwaterboy
aka Hoodrat (JAR)


Some pros:

1. Higher revenues for the government , I am not opposed to this at all, the national debt needs reduced to eliminate foreign debt;
2. Easier to enforce and more conducive .... economy more than offset any costs associated with lost deductions
3. It would eliminate loopholes that large corporations use to reduce their DNGP - currently around 35% for most
4. More money for survivors through the elimination of estate/inheritance tax
5. Eliminates double taxation
6. You want to stimulate the economy? Tell every American – “the harder/smarter you work to make more money means you get to keep, spend, give more money…. Control your spending…. No more mentality of: “ I’ve got to have me more kids, cuz I get more of a tax return check and then I will get more $ if they do one of those rebate checks.”
7. The other way to stimulate the economy in the short term – announce that sales tax is going to from 7% to 20%, spending will be at record levels . Large retailers like Target have stated, if they didn’t have corporate income tax, then their retail prices would drop in order to stimulate spending and in an effort to keep their margins similar to what they are now, hopefully WAL-MART wouldn’t be far behind , then everyone would blame Wally World like they already do now.
8. Everyone pays the same – no more of this rich get richer crap, if you are trying to save $ then JUST SPEND LESS !
9. Reduces the need for "tax shelters," due to the transparency of the new, flat rate – sorry lawyers – lost business
10. No more Federal Income tax, State Income tax, no forms to fill out by April 15th, sorry KGB agents (I mean IRS agents) you have been downsized, let free market reign

• Real world application – take a walk with me down this path you have seen, but chosen to ignore. Sit in any bank parking lot on a Friday between 4pm-6pm. It doesn’t matter which bank (ONB, 5/3rd,Bank One). Watch the lawn crew trucks, the carpet install crews, the general contractors, the plumbers, the candle stick makers. (Anyone who accepts cash or checks for their services) Then watch them pass out envelopes to the anxious laborers waiting for their cash. Ask yourself why this is done. The reason benefits both the worker and employer:
  a. the service provider has to be withholding revenue info from his tax statement in order to pay these guys cash
  b. in order for the employee to avoid INS tracking, the child support due, and obviously federal income tax
  
  The one way to track this lost revenue for federal and state government is to increase everyone’s cash register sales tax from 7% to 20%. This is obviously my best guess. Whatever you want to call it: Fair Tax, Flat Tax, National Sales Tax, Fiscal Federalism
  
  You ask for an example? Where has this worked? The Baltic states, after waving bye-bye to socialism and adopting the flat tax system, have become some of the fastest growing economies in Europe. Same with Ireland, who joined the E.U. as one of the poorest nations, and now, due to a flat tax system, has a higher per-capital net-worth than France, England, or Germany. Representative Richard Armey and Senator Richard Shelby have explored the impact on the economy and are still working on this topic.
  
  Estimates:
  Since 1993 the government has lost $85 billion in tax revenue because of tax shelters
  From MIT Press: National Retail Sales tax collected on personal consumption expenditures at the retail level, would generate gains in efficiency exceeding those from the Flat Tax by more than 50 percent.
  $142 Billion saved on Tax Preparers/Accountants annually
  Lost Income Tax and the cost of retrieving that income – annual estimates range $358Billion - $1.14 Trillion, either # satisfies me
  
  
  Discussion Topics - from previous posts and this post on this blog:
  Gay Marriage – MY GOD MAN – let them get married, lawyers need the additional work for all the divorces that will be filed and all the Durable Power of Attorneys created (this is not a slam to you J.H.), let the ACLU move on to the next pressing issue, the courts need the fees collected, the wedding planners/singers need gigs too, let them also eat cake, I think the late Great George Carlin once said “they deserve to be as miserable as the rest of us”.
  
  “I Have a Dream” by Allen – You are spot on with respect to most everything, except in my opinion the silver spoon comment, the Michael Savage comment is correct – he hates equally, and as you know Liberalism is a Mental Disorder - that is why our Lord and Savior created Xanax.
  I do request the right to change my opinion at a later date, as policy will definitely change in early 2009.
  - JR