New Tax Code

[wjtwet]

Originally Posted by LibertyandJusticeforAll

Why does it have to be a tax rate of 23% almost 50% of people arent even paying income taxes.
Make it 3% everyone paying anything is now actually paying.
That is 350 million people buying stuff all day all night that will out pace the income tax in about 6months when people are getting their paychecks!

Even the illegals will have to pay :-)

PS just think no tax on SS checks currently they are being taxed which in itself is insane. People retired wont have worry about the interest on the money they made in the bank and pay income tax. Stocks, bonds, revenue and income is no longer taxed.

You tell me 23% which would kill the economy or generation via the people at 3% sales tax.

Mostly people who are rich or middle class would like a flat tax but it doesnt get away from government control or income withholdings.
Leave the incomes along tax what we naturally do at 3% it wont kill anyone and kill bring in billions if not trillions to the govenrment.

At 23% you eliminate all federal taxes, FICA SS AND Medicare.
Federal gas tax and death, capital gains.
At 3% you proposed leaving in SS Medicare and FICA, so your effective tax rate would be higher than 3%.
The fair tax proposes to prebate poor on taxes for food and clothing and medicine.
Workers would have 100% of what they earn .
But your 3% idea is also good with me

[LibertyandJusticeforAll]

Originally Posted by DRob4JC

I don't have a problem with the OP's theory - except for a non-adjustment of the 3%. That was my point.

It can be adjusted to be lower then 3%.

The reason I say it can be adjusted HIGHER is because it will take one congress person or president without constitutional authority and try to make it 10% or 20% and it destroys the original intent.
I dont want it adjusted because govenrment looks for ways to get money and never put it back to the way its suppose to be even after a war or for some other expanse government idea.
LOW = freedom and without it we mine as well just hand over our paychecks again which is why it would have to be in the constitution.

[LibertyandJusticeforAll]

Originally Posted by rogerbacon

OP,

Sounds like a great plan but I think the tax rate would have to be somewhere around 16-25% to sustain us, not 3%. Isn't this what the "Fair Tax" inititive is all about?
Any new tax policy needs one element to be successful: no exemptions for specific items or behaviors. If the governemtn can use our own taxes to bribe us then we are surrendering a huge amount of power to them. Do this and you won't pay taxes on it. Buy this and you will pay extra taxes. A flat sales tax takes power out of government's hands and returns it to ours, where it belongs.
Maybe even better would be to eliminate Federal taxes completely and simply require the states to pay into a Federal fund based on their percent of the population. Let the states provide most of the services and limit the Federal goverment to only doing a few things like Defense and international relations. That would return power to the sttes as it is supposed to be. Then we would have a truely FEDERAL government and not a NATIONAL one like we seem to have now.

FYI this is a 3% federal SALES tax no flat tax ideas based on incomes.
Income tax would be GONE!

Sometimes that gets lost in the original idea :-)

[jetgraphics]

BTW - there is no way a 15% flat tax can fund the Federal government.

At this time, the government spends roughly 25% of the GDP.
Government, itself, doesn't increase the GDP.

The flat tax rate would have to be 33% for the Federal government to expropriate 25% of the GDP.