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|Election Catnip? Yeah, 8% Fed Sales Tax
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|Author:||brainout [ 26 Oct 2016, 08:51 ]|
|Post subject:||Election Catnip? Yeah, 8% Fed Sales Tax|
Audio, 7 mins: http://www.brainout.net/downloads/wma/CatnipFedSalesTax.MP3
I'll put the earlier supporting audio and video in here later.
Idea is that you can completely eliminate ALL Federal income tax on individuals, businesses and corporations and REPLACE it with an 8% Fed Sales tax on all RETAIL ONLY goods and services, and in effect give EVERYONE in America, a 37% net raise. The 8% rate should yield the same revenue as Feds got in 2016 fiscal, so there's no cut in Fed income.
Why? Because BUYER ALWAYS PAYS THE SELLERS' INCOME TAX on anything purchased. So it's income tax which is inherently regressive no matter how you structure it. Sales tax is inherently PROGRESSIVE (as the richer you are, the more you buy). Duh.
Pox on GOP and Dems for not doing this. They won't do it, as they only can control getting votes and donor money for re-election, if they keep an income tax in place. So they HATE the poor, and the BURDEN always falls hardest ON the poor. Because again, the buyer always pays the sellers' income tax.
Libertarians want a catnip issue to get Gary recognized NOW: well, this is it. Should take Cato only a weekend to run the model. I've been bugging them to do it for months.
PS I'm not sure about cutting income taxes on trusts (which file Form 1041), as they don't sell anything. I'm also not sure about capital gains taxes, but frankly they should be eliminated if Uncle Sam gets the same rev from the Fed Sales Tax.
Would take 3 years to phase in, and during that time any Fed Sales Tax paid could offset any income tax paid until the phase-in finishes (with carryovers). Would take a year just to develop the software? Maybe not, since the 'model' is the same as for collecting state sales taxes now. Still that first year it would be a hassle to implement.
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