The solution to our tax problem

[strategos]

I have done a lot of research on the subject and found that the best plausible tax system is the Fairtax. In reading these forums, i don;t understand why Libertarians like us don't like the plan, maybe because Huckabee endorsed it and Paul only gave a small nod preferring the nearly impossible... (yes it it)... Zero income tax.
http://www.fairtax.org/PDF/MacroeconomicAnalysisofFairTax.pdf
- There is a report by Laffer, a Reagan economist who helped develop ideas in supply-side economics.
This plan is clearly the best and causes government to be the least invasive. SO many hidden taxes don;t show up to voters but if they see the rae at the checkout line they will really be concerned with taxes. We currently have way to high corporate and a stupid income tax system that is a disincentive to growth. Read into it and post your response here.

[IcyPeaceMaker]

NO tax is the best, but you know they would be less able to run the money presses under a flat tax, and not be able to do it at all under the gold standard.

[clouds]

I can see one plus to the flat tax. It would make me less apt to spend money(everything 20% higher does have that effect). It would wound the economy, though... and frankly, I'm not sure I'm unhappy with that if it knocks some sense into the government.

[TrappedInSocialistSweden]

Here (sweden) we pay 25%, 12% and 6% on taxes on all things we buy (the % rate depends on what is bought, for example, books and food: 6%). On top of this we pay around 40-60% on labour. Add to that a number of other taxes such as gas tax and business tax(the list of taxes is endless, literally ENDLESS). An average joe in Sweden approx. pays around 72-75$ of every 100$ earned back to the wise and almighty government. Its fucking bizarre.

Conclusion: If you only get a 20% sales tax its still faaar better than most european countries, it still suck though.

Another thing ive noticed is that the US is as horny as we are on regulating stuff.

[Bossobass]

The problem with the so-called 'Fair' tax is that it's just another tax.

In 54 years on this earth, the one thing I've learned is that a tax by any name will only ever increase.

This government has had it's run of raising taxes and still spending more than they bring in. To say that zero income tax is impossible is to also say that the current income tax is impossible because it only delays the same outcome.

The only answer is to check Federal spending, beginning with the ridiculous military and 'intelligence' budgets and black budgets and then turning to entitlements.

Debt is the single cause of the crippling of the US economy and the fall of the dollar. Debt will continue regardless of the name and/or method for generating revenues.

To have gone from the world's #1 creditor to the world's #1 debtor and to see a solution to that problem in maintaining current levels of spending can be applied to any household and any business in America. It's simply a terminal philosophy.

If my household was awash in savings and other equity and we went on a spending spree (even as the spending was justified as being for things that are needed or good investments, etc) that erased those savings and equity to zero and continued on through incurring debt by borrowing beyond any and all methods contrived for increasing income, what would eventually happen?

Ron has the answers.
1. Slash military spending overseas. Bring those dollars home.
2. Slash taxes. Put those dollars into the economy.
3. Abolish the Departments...all of them are useless money drains.
4. Legalize competing currencies.
5. Decriminalize drug use.

Savings: Twice the proposed 'stimulus' package. No deficit. 50% less income tax. Reduction in National debt for the first time...ever. Inflation tax reduced to zero.

Think of it. Bush and the others talk of a stimulus package of tax rebates to soften a recession which consists of $150 billion, but do nothing about the $450 billion deficit, which is taking 3 times as much as the stimulus right back out of the economy and turning it into a long term liability.

If you want to raise revenues, raise the gasoline tax.

Netherlands Amsterdam $6.48
Norway Oslo $6.27
Italy Milan $5.96
Denmark Copenhagen $5.93
Belgium Brussels $5.91
Sweden Stockholm $5.80
United Kingdom London $5.79
Germany Frankfurt $5.57
France Paris $5.54
Portugal Lisbon $5.35
Hungary Budapest $4.94
Luxembourg $4.82
Ireland Dublin $4.78
Switzerland Geneva $4.74
Spain Madrid $4.55
Japan Tokyo $4.24
Czech Republic Prague $4.19

Venezuela Caracas $0.12

A $1.00 increase per gallon would raise $150 billion a year. If every cent of it was used to pay down the debt, principal only, it would take 60 years. If that isn't a sobering thought, I don't know what is.

Bosso