Recent comments

  • Reply to: Taxes, and Tigers and Bears. Oh My!   7 years 9 months ago

    This is a very good point and one that the masses will have to figure out for themselves. They are to easily lead by popular media and the ad dollars that fund it. Our own recent governors primary race is a very good example. Both sides were ripe with corruption charges. I tend to think that both sides were actually telling the truth about the other, but people still voted for only those two as if that was the only choice.

    I worry too that as a 3rd party gains it also can get co-opted by those same forces. I would like to see the federal government stop the subsidies to either of the two major parties so that they would be on an equal footing with other 3rd parties (plus I don't like paying for their follies). Of course, then corporate monies would become the new subsidy and the "politician for hire" mentality that has supplanted our democratic processes would simply increase. As I've said before, I have many questions and few answers, but it is nice to see such a discussion.

  • Reply to: Taxes, and Tigers and Bears. Oh My!   7 years 9 months ago

    Mmmmm....Yes but so many people have learned that the fed.gov uses a dictionary for such terms other than Webster's. Perhaps their dictionary was codified by Attila the Hun?

    We should (and I stress should) strive to achieve a tax code that is not predicated on the concept of indentured servitude.

    Yes I am aware that the Fair Tax would tax services. It would tax just about everything except pre-owned goods. The APT could be accomplished through rather simple computer coding and reporting only from the financial institutions. The Fair Tax would require that retailers and service providers be the tax collector and reporter. I don't like collecting taxes, sales, payroll or otherwise. I'm certainly not getting paid to do so.

    Again, as stated, only 5 states do not have some type of sales tax. If, as you previously suggested, the IRS would send their storm troopers into businesses, why havent the indiviual states been doing so? They have just as much riding on revenue as does the federal government.

  • Reply to: Taxes, and Tigers and Bears. Oh My!   7 years 9 months ago

    I put "voluntary" in quotes because the income tax is certainly not voluntary in the conventional sense of the word. It is "voluntary" in the sense that people pay it with only random sample monitoring by the IRS. This works because each tax return provides information about others.

    BTW, the Fair Tax would tax quite a few services currently not sales taxed in most states.

  • Reply to: Taxes, and Tigers and Bears. Oh My!   7 years 9 months ago

    "The Fair Tax would be a cut for the working poor and the ultra rich. The upper middle class and the somewhat rich would be clobbered. "

    I view it as hitting sectors of the economy. I've studied the Fair Tax and believe my family would be better off under the system. However, I also believe that the retail sector (the sale of new manufactured items), would be hit the most.

    "But that's not the worse part. The Fair Tax would not be a "voluntary" system in the sense that the income tax is."

    How is the income tax voluntary?

    "A sales tax lacks this double entry effect. As a result, the government would need no-knock access to all businesses in order to perform spot audits."

    We have a sales tax right now (in Texas). State auditors have yet to knock on my door to audit my books. As a matter of fact, every state I have ever lived in has had a sales tax. As the "administrator" of the facilities at which I have worked, if there was ever an audit it would have been me handling the situation. That has never occurred in the 20 years I have been in my industry.

    "This is the case now for state sales taxes, which are by comparison trivial. You think the IRS goons are bad, wait till you see the sales tax police in action."

    I file my state sales tax annually. It isn't an issue. However, the APT would not require any reporting by entities that provided goods and services. That pleasure would be laid upon the banks. If I deposit checks or cash.....it would be taxed. If I had electronic deposits (which is my primary souce), it would be taxed. In all cases it would be the bank (or  merchant services) that deducted the tax and forwarded on to the appropriate entity (fed, state or local).

    So, if anyone got audited.....it would be the banks and transaction vendors. I don't have a problem with that. They are part of the financial infrastructure and the beneficiaries of hundreds of billions in bailout dollars. Let them eat cake.

  • Reply to: Taxes, and Tigers and Bears. Oh My!   7 years 9 months ago

    The Fair Tax would be a cut for the working poor and the ultra rich. The upper middle class and the somewhat rich would be clobbered. But that's not the worse part. The Fair Tax would not be a "voluntary" system in the sense that the income tax is. The income tax works because we report on each other. My employer's deduction is my paycheck. A sales tax lacks this double entry effect. As a result, the government would need no-knock access to all businesses in order to perform spot audits. This is the case now for state sales taxes, which are by comparison trivial. You think the IRS goons are bad, wait till you see the sales tax police in action.

    The transaction tax would also not work as advertised. The tremendous number of trades we see today are due to the low transaction costs. Bump up the costs and the activity drops precipitously. We're talking serious Laffer Curve action.

    --Carl M.