Is it time to replace the IRS and current disproportionate tax system with a 1% charge on every commercial monetary transaction that creates equal contribution for all?
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I agree. And the consumption tax must be applied to all commercial transactions. This includes all business transactions as well.
Do commercial transactions include purchasing a house from a company that build houses. Are you going to provide an exemption for charitable contributions?
Consumer tax...not at every level of production or you'd end up with more over taxation...
I would prefer to see a flat tax without any exemptions except for a prebate.
Mitch - please join the great group at http://truetax.ning.com/
When the term flat tax is used, is it the same as a national sales tax, or is it a value added tax, or a fixed amount on the transaction. You say no exemptions so we would tax hospital visits, surgeries and medicines?
correct. The True Fair Tax is assessed against all commercial transactions. no exceptions. the capital model for business would then require adjustment to eliminate all unnecessary transactions. the best would be direct from manufacturer or doer
So do you also want to eliminate the gasoline tax that built the Interstate highway system..Something that work when our nation was young and not an international player will not work today.
A simple 1% consumption tax would have given us approx. $12.5 trillion for 2011. No deductions, no exceptions. Companies, Corporations, non-profits - everyone pays. everyone contributes equally to the security of the nation.
the best elimination of wasted resources is a consumption tax collected by the states with the sales tax for every transaction. no IRS necessary. no special magic math for corporate books. no deductions. flat as it can be.
Unfortunately the states don't have the resources in their budget to address something of that scale. They can barely keep up now. And that would be a gold mine for organized crime. I'd be buying just about everything out of the back of the truck.
fortunately the states do not require additional resources to adapt the True Fair Tax of 1%. The current system would permit the direct deposit of such collection without additional manpower. It is the easiest of the Fair methods to work. a win-win
Not likely. The money would still have to go to the us treasury, which would require federal compliance with treasury policies. They'd be handing down all kinds of red tape. No matter what the Feds are a dominant force and inneficient.
simplification is a very difficult abstract for tyrannical personalities to comprehend. Therefore, our federal government has much difficulty in seeking and achieving simplicity. However, owners (legal citizens) of the nation envision it easily
I agree. Additionally, your idea would require a constitutional amendment which is unlikely. That's why I favor the flat income tax, which would be easier to implement. But won't likely happen either.
Are you proposing that we create a national bank, national health insurance, etc!? America does not need any more of these Socialist ideas. Please don't write in such an ignorant way.
The men sent to the moon were sent through the expenditure of tax dollars paid by the people of the country. Secondly, you will never convince me that the plan you offered could be operated efficiently by the Government.
America is a socialist country has been since the Roosevelt administration and if your against that I'm sure you will immediately relinquish your social security and medicare benefits
I, for one, would gladly give up all benefits like social security and medicare ect..as soon as the government returns all of MY MONEY that they took for those so called benefits!
have a great time - do some research at http://truetax.ning.com/
Brie: Do you want what you paid in Social Security Taxes, or do you also want what your Employer was required to paid. Had he not been required, my bet is that there would had been no pension to replace it. When the Dow fell, your SS was secured.
I agree, why should any entity be entitled to YOUR money and labor without your permission!
No, the problem with it's existence at all...this is not just about the current issues. There is no need for this agency to even exist if we had a flat/fair consumer tax.
And it does not merely do paperwork...it is an enforcement agency.
the rules of engagement interpreted by the IRS differ for each income structure. Corporations pay no tax, the poor pay no tax, so the country is funded by the middle class. 1% - a fair and equal amount. then, no computer needed. fifth grader pro.
This latest "scandal" is a molehill growing into an artificial mountain. It was one office, a few misguided employees. They tried to interpret uninterpretable regulations to make sure that non-profit applications were not actually political organiz.
thanks for your comment as well. I am working with a small group of concerned citizens who will be asking the next question - Are you prepared to join a group to demand a balanced budget and a 1% consumption tax system Constitutional amendments?
The True Fair Tax is applied on every commercial transaction handled by licensed companies. The system is currently operating by every state in the union as a sales tax. It would be 1% additional for the states to collect and forward to the feds.
A 1% tax is not going to be enough. Exemptions are not all bad. One exemption encourages savings in 401ks and IRAs. Another exemption encourages contributions to help the needy. All exemptions are not bad. When I made more I saved more and gave more.
fair is a 1% consumption tax collected along with the sales tax on transactions. No exceptions. States collect it and deposit it in several accounts - 1 fed budget, 2 social security, 3 state welfare, 4 progressive profit refund to legal citizens.
Ok,the fair tax would be say...20% but then you add on state tax,splost tax and soon it's 40% or more.
Thank you Larry for that! I also agree with your informative thorough answer!
Actually, trying to change the tax code will simply reveal the root cause problem, which is that our Congress people are bought and paid for by moneyed interests, and thus are not ultimately beholden to the citizens. Gets worse by the day.
Many different percentage rates have been discussed for the flat tax. However, all of those are ridiculous when looking at the affect on the poor. That is why we have identified the True Fair Tax as a 1% consumption tax for commercial transactions
For the record, no one has mentioned where property taxes would fall in this category regarding total taxes paid by the people When I got my severance check there is an IRS rule that requires a 25 percent withholding. Add, SS, etc. gov't kept 40%
change is never easy. but "We the People" must work together to accomplish the elimination of the IRS through the simple True Fair Tax - 1% based on consumption. States collect it with their sales tax and forward to the fed. equally fair to all.
everyone will pay 1% based on every commercial transaction processed. this means that when $100 is spent by anyone, they will pay $1. This will then eliminate the differing percentage rates because there will be no deductions.
How much revenue will this 1 percent tax generate and who is going to administer the collection. Retail outlets that collect sales taxes for the state or city, get a percentage to cover the cost of collections.
Larry, businesses do get a collection fee for taxes...at least no business I've been involved with.
Larry, the same rules shall apply. According to the Constitution, the States are responsible for providing the revenue to the fed. It was only when more rich people lived in one state or another when the rules were changed to gouge the mid-class
The problem is that we have abdicated personal responsibility to the government. We need to stop all the levels of bureaucracy and end the federal government's reach into things that it is not given the specific power to do by the enumerated powers.
I am pretty much in agreement with you, especially on the chance that this is unlikely to happen anytime soon.
1% equates to $12.5 trillion when calculated against all commercial transactions handled by the treasury department. by the way - this would include collecting 1% from every foreign contract where we do not collect funds today.
If you tax foreign government transactions, that tax is added to the retail price and it will be paid by the American Consumer. With no deductions, that tax becomes harder to accept.
Recent revelations about the IRS amount to a mosquito bite. I once thought a flat tax was a good idea. You can get rid of the IRS and create the FTS, Federal Tax Service. Stores, credit cards track your spending habits. There will be no privacy.
Larry, your privacy disappeared when the government decided to protect the criminals rather than the law abiding citizens. Semper Fidelis
please join the group at http://truetax.ning.com/
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