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A federal sales tax?
“Fair Tax” proponents generally propose transfer of our major federal tax revenue sources should be accomplished within a single year, if not upon a single date. I do not believe the U.S. Congress would or should ever be so imprudent. those fair tax proponents are insisting that their proposal should never be passed, and enacted.
Providing the legislation is drafted to keep their promise to grant sufficient compensating consideration for the poor, I perceive real net economic benefits to be derived if we incrementally enact replacing all or any portion of taxes upon incomes with a sales tax. Incremental enactment is the superior and the most prudent enactment for this application.
Each incremental enacting step should simultaneously increase the sales tax, reduce taxes upon incomes and grant additional compensating consideration to mitigate the additional sales taxes impact upon the poor; those compensating provisions need not be limited to tax provisions.
The consequential revenues realized after each incremental step will better guide reconciliation for the next step’s scheduled tax modifications.
The initial enactment step will enact the sales tax and eliminate the portions of FICA taxes (which are funded by both employees and employers) that do not fund the ordinary Social Security retirement program, (eliminating FICA funding for such programs as Supplemental Security Income (SSI) and disability insurance benefits). Within that same initial or the next step, half of FICA's remaining tax rate (that’s paid by both employees and employers), should also be eliminated.
FICA is our most regressive federal tax. It’s proportionally a greater burden upon the working poor. (Retaining a portion of the payroll tax that funds social security retirement benefits also retains a portion of the program’s insurance concept).
Before any of the new federal sales tax contributes to our general tax revenues, I advocate Congress “ear-mark” specific portions of the sales tax rate for the funding of specific social programs. This would be a continuous reminder of each of those programs costs to individual sales transactions and eliminate repeating the canard that the poor don’t pay taxes. This lie’s particularly untrue regarding the working-poor.
Individuals and their dependents’ incomes are (proportionally to their actual incomes), more accurately reflected by their aggregate purchasing transactions rather than by the tax forms they submit for the purposes of reporting their incomes. Costs due to tax evasions, compliance, administration, and enforcement are less for general flat rated taxes based upon gross sales rather than taxes upon net incomes.
I believe a federal sales tax rate to entirely replace USA’s tax revenues derived from taxes upon enterprises' and individuals'net incomes and payrolls would be politically unacceptable and economically less than feasible). If incremental enactment were to begin, I believe after one of the incremental steps the congress would recognize this and interrupt sales tax increases.
If I’m incorrect, sales tax would entirely replace federal taxes based upon net incomes.
Replacing any portion or all portions of our taxes upon net incomes with a sales tax would be net beneficial to our economy.
Respetfully, Supposn
“Fair Tax” proponents generally propose transfer of our major federal tax revenue sources should be accomplished within a single year, if not upon a single date. I do not believe the U.S. Congress would or should ever be so imprudent. those fair tax proponents are insisting that their proposal should never be passed, and enacted.
Providing the legislation is drafted to keep their promise to grant sufficient compensating consideration for the poor, I perceive real net economic benefits to be derived if we incrementally enact replacing all or any portion of taxes upon incomes with a sales tax. Incremental enactment is the superior and the most prudent enactment for this application.
Each incremental enacting step should simultaneously increase the sales tax, reduce taxes upon incomes and grant additional compensating consideration to mitigate the additional sales taxes impact upon the poor; those compensating provisions need not be limited to tax provisions.
The consequential revenues realized after each incremental step will better guide reconciliation for the next step’s scheduled tax modifications.
The initial enactment step will enact the sales tax and eliminate the portions of FICA taxes (which are funded by both employees and employers) that do not fund the ordinary Social Security retirement program, (eliminating FICA funding for such programs as Supplemental Security Income (SSI) and disability insurance benefits). Within that same initial or the next step, half of FICA's remaining tax rate (that’s paid by both employees and employers), should also be eliminated.
FICA is our most regressive federal tax. It’s proportionally a greater burden upon the working poor. (Retaining a portion of the payroll tax that funds social security retirement benefits also retains a portion of the program’s insurance concept).
Before any of the new federal sales tax contributes to our general tax revenues, I advocate Congress “ear-mark” specific portions of the sales tax rate for the funding of specific social programs. This would be a continuous reminder of each of those programs costs to individual sales transactions and eliminate repeating the canard that the poor don’t pay taxes. This lie’s particularly untrue regarding the working-poor.
Individuals and their dependents’ incomes are (proportionally to their actual incomes), more accurately reflected by their aggregate purchasing transactions rather than by the tax forms they submit for the purposes of reporting their incomes. Costs due to tax evasions, compliance, administration, and enforcement are less for general flat rated taxes based upon gross sales rather than taxes upon net incomes.
I believe a federal sales tax rate to entirely replace USA’s tax revenues derived from taxes upon enterprises' and individuals'net incomes and payrolls would be politically unacceptable and economically less than feasible). If incremental enactment were to begin, I believe after one of the incremental steps the congress would recognize this and interrupt sales tax increases.
If I’m incorrect, sales tax would entirely replace federal taxes based upon net incomes.
Replacing any portion or all portions of our taxes upon net incomes with a sales tax would be net beneficial to our economy.
Respetfully, Supposn