Writer Wants ‘Fair Tax’ Calculation
In another development highlighting the need for the Fair Tax, Congressman Dennis Kucinich, a Democrat from Ohio, excoriated the Treasury Department last week for failing to adequately trace banks’ use of taxpayer bailout money. The criticism included a $8 billion Citigroup Inc. loan to Dubai, a $7 billion Bank of America investment in China Construction Bank Corp., and a $1 billion investment in India by J.P. Morgan. Although the transactions are not illegal, Kucinich criticized the channeling of taxpayer money to foreign governments rather than the domestic economy.
If we had the Fair Tax, Kucinich could stop complaining, and it would be unnecessary to hit the banks over the head with a federal billy club.
The Fair Tax is a bill in Congress – H.R. 25 – to replace payroll, estate, gift and generation-skipping taxes, as well as corporate and individual income taxes. The Fair Tax replaces these taxes with a progressive national retail consumption tax. By un-taxing business and investment in a way that remains fair to low-income individuals, the Fair Tax, overnight, makes the United States the tax haven of the world.
Employed Americans are stimulated to spend their immediate increases in income (cash) and some several trillions of cash offshore returns to be invested in our economy. This beats all to hell the idea of borrowing and printing trillions to stimulate the economy and laying the burden of debt and inflation on generations that follow us.
The American way has always been to sacrifice now for the future of our children. Congress would have us avoid present sacrifice and let our children suffer for it later.
John Hanson
Bristol, Va.
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cactusclef, great points. All (whatever) needs to know to know that corporations don’t pay taxes is to ask him one question: What would happen to the price of gas at the pump if oil companies were taxed 30% more tomorrow?
Whatever,
Corporations don’t pay taxes. They pass the cost of taxes on, as an expense of doing buisness, to those that consume their goods or services.
51 sponsors to HR 25 and not a New Yorker among them!
The US revenue system (and federal court) is the was the powers that be control the people, and make a mockery of States Rights. They take extort our money on pain of incarceration, and dole it out to whoever is submissive to their will, witholding it from those who are not.
For example, if a State refuses to implement Federal standards for DUI thresholds, the Fed withholds funds for highway maintenance and construction.
Our tax dollars is the big stick they wield to force their will on us. It’s also the way they have funds to buy whatever they want (including corrupt foreign leaders), without having any agreement on our part.
The Fair Tax is fair to us, and the States, but means them relinquishing their control, and their power in the world.
I liked both Ross Perot and Ron Paul because they have horse sense and are straight-talkers; but I think the shadow government would use every means in it’s power to prevent this kind of radical, completely sensible reform.
I sincerely hope that I live to see it!
Whatever, I have been away for awhile, so have missed alot. But you said: “2- If they are that money greedy in which they would go through all the trouble getting out of paying taxes so they can have more, then why in the world would someone think they going to now pass it down under the fairtax.
“.... Nominal prices may g down, may go up, or may stay the same….that depends on ehat reaction the Fed Reserve has to the Fair Tax being enacted. The real purchasing power is not changed. For example, if I make $100K a year and a home costs $200K a yar, or I make $100 a year but a house costs $200 a year, it is irrelevant….If prices under the FT rise because of no embedded taxes taken out, the 100% paycheck and the prebate will cancel that out, and Soc Sec recipents will not care because their SS benfits go up as it is indexed to inflation…. OR, if prices drop, wages will too…but that is irrelevant as real purchasing power is the same. It is real purchasing power that you care about. I would rather make $1 a year and a house cost a dime and a car a penny, than to make $500K a year and the average home cost $2 Million and a loaf of bread costs $100.
Let’s take your comment as face value regarding your understanding of business operations. If that’s the case, you also understand that every business has a return/margin that it has to maintain otherwise it goes out of business. For instance, in order to attract capital, the grocery industry must maintain at least a 3% margin on sales. Drop below that and the business will no longer be able to attract investors/capital, and will soon find itself unable to maintain operations.
If the margin goes higher, the business must make a decision. It can return higher rates to investors, which makes the investors happy, but doesn’t necessarily generate more long-term profit for the company. Alternatively, it can use the higher margin to drop prices, and hope to capture more market share, which does translate into greater bottom line profits. This too ultimately leads to higher investor returns, due to business success.
A seldom used alternative, to hoard cash, is done only in times of financial uncertainty and usually by less competent managers.
Yes, whatever, but please tell us exactly HOW this illusion takes place? Pull the curtain back and show us what magic the Fair Tax is hoaxing on everyone. None of what you’ve said holds water, so I want to see the magic you are saying is there! This is an open forum…no one is stopping you.
Yes I remember…
NO, The article did NOT say that they ALL were cheating.
It said:
“The GAO study did not investigate why corporations weren’t paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits. “
It also said:
“An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called “S” corporations pay taxes under individual tax codes. “
This does not help you point at all.
FairTaxNation
You say “Are those evil business owners bringing you down? Do all the business look for ways to cheat or is it just a few? Like Marx, you think that every business owner will cheat if given the power so we must punish them all.“
OH, but it was the fairtax that said it remember? http://www.fairtax.org/site/News2?news_iv_ctrl=-1&page=NewsArticle&id=10031
They posted this to make people want the fairtax so to punish the people who are not paying by taxing their product and the things they buy. That’s their argument not mine.
Hadenough, You say “could you explain in detail the mechanism of this supposed illusion? I explained exactly what’ll happen after the enacting of the Fair Tax, and there is little room for argument or illusion.“
I have all ready explain all the “you can’t have it both ways” illusions the FairTax wants people to believe, go back and read them all.
I did not know you could predict the future. WOW!
Kicker, I understand more then you think I do on Business. Listen since the Supply and Demand is being used then let me explain what you seem to be over looking. Price for a product or service is set at what someone will pay for that product or service. Lets say the demand dropped for a product then the correction can only be made in the price and supply, can either cut supply because of demand dropped and keep price the same or reduce price and or do both. The Company will do what ever to keep profit as high as possible so in doing either the WORKER WILL BE THE LOSER by layoffs our reduced pay.
->New Cars stopped selling and they cut production by laying off but price has dropped very little.
The US Oil Companies cut Refining production by laying off workers and in turn it cut supply and brought the price of a gallon of gas back up some, the Oil Company is now making more then a few months ago by producing less.
Ask yourself why when these banks knew they where in trouble and need to start saving or reduce cost did not start taking less from the cookie jar months before. This is the real World .
But I guess no need to worry, Hadenough has already explained exactly what’ll happen after the enacting of the FairTax and its good to know someone knows the future before hand. Puts me at ease.
Whatever,
Now, just who is being delusional here?
We expect you to start the chant soon…“Workers of the World, UNITE!“
Are those evil business owners bringing you down? Do all the business look for ways to cheat or is it just a few? Like Marx, you think that every business owner will cheat if given the power so we must punish them all.
I see you have dined on a 7 course meal cooked up my Marx and served up by Engels. You probably do not even know it. Or do you?
“The bourgeoisie, ~~~>wherever it has got the upper hand,<~~~ [...] has left remaining no other nexus between man and man than naked self-interest, than callous “cash payment” [...] for exploitation, veiled by religious and political illusions, it has substituted naked, shameless, direct, brutal exploitation, [...]everlasting uncertainty and agitation distinguish the bourgeois epoch from all earlier ones…“
Your unrelenting protection of the second plank along with your apparent disdain for those evil corporate empires seems to paint you as a die hard socialist.
whatever, could you explain in detail the mechanism of this supposed illusion? I explained exactly what’ll happen after the enacting of the Fair Tax, and there is little room for argument or illusion.
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