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Originally posted by madnessinmysoul
you're giving us reasons to support this tax system
but no reasons as to to why the current income tax system is an abomination
or a sinking ship
now, i'm all ears for any system of taxation, but i want to know why we need a new one before you prepose it
Here are some applied research results of economists who analyzed the likely impact on the U.S. economy of moving from the current federal income tax system to a broad-based consumption tax, such as the national retail sales tax plan called for by HR 25 and S 25, the FairTax. In a study of the specifics of the FairTax plan, Kotlikoff and Jokisch find that the capital stock will be 13 percent higher under the FairTax system than under the current system by 2010, and 41.4 percent higher by 2030, and that long-run interest rates would be 150 basis points lower than under the current system. Their study states that, “the shift to the FairTax raises marginal labor productivity and real wages, over the course of the century, by 18.9 percent and long-run output by 10.6 percent. . . . These macroeconomic gains have important microeconomic welfare implications. In the long run, low-income households experience a 26.7 percent welfare gain, middle-income households experience a 10.9 percent welfare gain, and high-income households experience a 4.7 percent welfare gain. This is a very progressive long-run outcome.”1 Another new study of the FairTax plan by Arduin, Laffer & Moore Econometrics finds that investment will be 33 percent higher in the first year and 41 percent higher by the tenth year than under the current tax system. The effect of an increased rate of productivity growth and the reduced efficiency costs yields GDP up to 24.4 percent greater than under the current system by the tenth year. Consumption, fueled by 1.7 percent higher real disposable income in the first year which increases to 11.8 percent higher by the tenth year, is higher by 2.4 percent in the first year and 11.7 percent by the tenth year.
Originally posted by The Vagabond
Edit to add:
Any chance you can source that quote in your last post semperfoo,
[edit on 27-12-2006 by The Vagabond]
and maybe sum up the videos for those unfortunate few (including me) who still have dialup or otherwise have problems with video?
Originally posted by ape
now lets keep our own personal 'solutions' out of this thread ok 'the vagabond' ?
here are some accurate informative blogs that i think you would all enjoy.
Sad to say, much of what passes for tax policy analysis in both professional economic writing---and most certainly in the media---is a vacuous comparison of one counter-factual hypothetical to another counter-factual hypothetical.
companies would be making so much dough peoples pay rates would rise rapidly
Bringing American Business Back Home
“American business over sea could be eliminated…for GOOD!?”
The effect on these ‘hidden’ taxes has costed out economy in the form of American jobs being outsourced and moved over seas. Many Businesses have moved their headquarters and production to over seas where they will not be taxed as much as over here. FairTax will fire up particular incentive to move American based corporations back home. The taxes on capital and labor would be eliminated. The only way for any global business to compete with us would be to move their headquarters over here, Thus stimulating the economy, creating jobs and increasing stock values.There would be no reason to shirt American companies over seas,more jobs more revenue for America giving US the advantage.
In 2003, $ 203 Billion was spent on IRS fillings alone, Money that could have been put to much better use under the FairTax plan. Economist estimate that in the first year alone our economy will grow 10.5% and exports will increase 26%! Capital Spending will increase 70%, our interest rates are supposed to decline as much as 30%! While the American worker is collecting 100% of their paychecks. The $400B to $500B we spend Compling with the IRS would be Additional money in our pockets.It would create jobs,increased profit margins and stock prices, new businesses. If our corporations werer the only NO embedded tax companies in out pricing system, NO one could even come close to competing with us. To remain competitive Foreign corporations will have to build plants and businesses here in America and soon enough enact a Fairtax of their own.
Overview of FairTax Collection of 100% of our pay checks We all get virtual Raises, since payroll taxes no longer apply. We will start receiving month Prebates equal to the amount of Consumption tax we would pay. Saving and investing will Sky rocket The prices of goods and services with remain virtually the same Rich Americans will bring their money back from off shore accounts and put it back into our economy. With lower intrest rates, higher saving rates and more disposible spending,it is clear that both home sellers and home buyers will benefit from this.
Promotion of economic growth
In an open letter to the President, the Congress, and the American people, seventy-five economists, including Nobel Laureate Vernon L. Smith, stated that the FairTax would boost the United States economy. According to the National Bureau of Economic Research and Americans For Fair Taxation, GDP would increase almost 10.5% in the year after the FairTax goes into effect. Real investments could increase by as much as 76% initially and remain 15% above present levels. In addition, the incentive to work would increase by as much as 20%, the economy’s capital stock would increase by 42%, labor supply by 4%, output by 12%, and real wage rate by 8%. Further, studies of the FairTax at Boston University and Rice University suggests the FairTax will bring long-term interest rates down by as much as one third. As falling tax compliance costs lower production costs, exports would increase by 26% initially and remain more than 13% above present levels. According to Professor Dale Jorgenson of Harvard University’s Economics Department, revenues to Social Security and Medicare would double as the size of the economy doubles within 15 years after passage of the FairTax.
The United States is the only one of 30 OECD countries with no border adjustment element in its tax system. Proponents state that because the FairTax would automatically be border adjustable, the 17% competitive advantage, on average, of foreign producers would be eliminated, immediately boosting U.S. competitiveness overseas and at home. Leo Linbeck, chairman of FairTax.org, has stated that U.S. manufacturers and sellers can not compete successfully with foreign producers because of U.S. tax policy. "The Ways and Means Committee is tasked with writing the taxation laws that raise revenues for the nation but the fact that foreign nations routinely tax U.S. products upon entry and that these nations forgo national taxes on exports to the United States is a Ways and Means blind spot that has all but killed the 'Made in America' label". American companies doing business internationally would be able to sell their goods at lower prices but at similar margins, and this would bring jobs to America. In addition, U.S. companies with investments or plants abroad would bring home overseas profits without the penalty of paying income taxes, thus resulting in more U.S. capital investment. This would result in imports and domestic production competing on a level playing field. Exported goods would not be subject to the FairTax, since they would not be consumed in the U.S.; but imported goods sold in the U.S. would be subject to the FairTax because these products would be consumed domestically
Repatriation of offshore accounts
In The FairTax Book, Boortz and Linder assert that an estimated ten trillion dollars is currently held in foreign accounts, largely for tax purposes. They predict that enactment of the FairTax would result in a large portion of those funds being transferred to U.S. banks, where they would become available to U.S. capital markets, bringing down interest rates, and otherwise promoting economic growth in the United States instead of the countries where those funds are currently held.
Originally posted by ape
err not over simplifying i mean overly complicating something that isnt complicated at all vagabond, fair tax simplifies our system, our current system is not working. why should someone in india have a job that belongs in america? have you watched those doc's??? the indians actually think its because they're smarter !! trust me when I say the flaws have been looked at and still concluded that this system is the best for our country. take a look at our current tax system, over 60,000 pages wtf is that? it's flawwed beyond belief and if this country goes liberal democrat here comes the big government outsourcing tax you to the max policies that will make this country collapse, god damn socialists. we need something now to restabalise the dollar and bring the demand and innovation along with investment back to this country ( we do have demand and innovation and investment but our current policies will not sustaine the country and the spending needs to be checked, all of this can happen while fair tax doubles up our GDP and economy in the process making us more able to absorb our deficit in time.
Originally posted by spinstopshere
This sounds good to me. I am sick of how it looks like every American company is going to China.