tag:blogger.com,1999:blog-38479691.post5422513504418995857..comments2023-11-05T01:35:10.419-06:00Comments on The Travis Monitor: The Fair Tax - the "Single payer" of tax reform?Randy Samuelsonhttp://www.blogger.com/profile/05422806680210032661noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-38479691.post-74970837663945263942009-08-30T06:17:26.984-05:002009-08-30T06:17:26.984-05:00FT,
Perhaps I didn't make it clear that Fairt...FT,<br /><br />Perhaps I didn't make it clear that Fairtax-Lite replaces the income tax entirely for both businesses and individuals? The 12% revenue neutral rate was calculated using 2007 individual and business federal income tax revenue data, which amounted to $1.391 trillion. The rate was also adjusted to pay for the $59 billion EITC credits I proposed.<br /><br />I like your thinking on the issues, but would caution against trying to do too much initially. Let's just replace the income tax over five to ten years, and if successful, move on to other tax simplification ideas. I fully support a national sales tax, but don't agree that the Fairtax scheme as described in HR25 is the way to go! <br /><br />Best regards,<br /><br />DutchDutchman3https://www.blogger.com/profile/04598625693698270641noreply@blogger.comtag:blogger.com,1999:blog-38479691.post-54089111411409635222009-08-29T22:00:13.781-05:002009-08-29T22:00:13.781-05:00Dutchman: Yes, something along those lines might w...Dutchman: Yes, something along those lines might work. I have something I call "The 15% solution" that has similar thoughts.<br /><br />my point about the dangers of the half-measures is that they keep the hated IRS. My solution in the "15% solution"? Abolish the income tax entirely for all but the rich - and make it a flat tax (of only 15%-20%) for that top 20%. This has the benefit of lower tax rates *and* making the income tax more progressive at the same time. Then a lower sales tax rate, starting with imports, can be put in place, and structure it so that lower payroll taxes make up for the sales tax burden.<br /><br />I would be curious to know what you do about the income tax in the system.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-38479691.post-13969629689997320942009-08-29T03:29:51.159-05:002009-08-29T03:29:51.159-05:00Re: the Fairtax, I couldn't agree with you mor...Re: the Fairtax, I couldn't agree with you more. AFFT tried to do too much, too quickly, imho. If we really want to get rid of the hated IRS, how about a simplified plan I call Fairtax-Lite?<br /><br />Fairtax-Lite is a revenue neutral12% national sales tax with no exemptions, no inventory tax credits, no "prebate, but retains the EITC to protect the poor, does not tax government spending, retains the payroll contributions and the gift/estate taxes, and phases in over five years.<br /><br /> Congress is institutionally conservative, and much prefers evolution to revolutions such as the Fairtax. Fairtax-Lite might have a better chance of Congressional consideration?Dutchman3https://www.blogger.com/profile/04598625693698270641noreply@blogger.com