🚀 go-pugleaf

On 19 Jun 1996 03:38:43 GMT, rudy@cbnews.cb.att.com (avram.r.vener)
wrote:

>
>Then again, maybe not. It depends on how many of us get off
>our duffs and tell our congresspersons to get off theirs as
>well to suppor H.R. 3039.  
>
>What is H.R. 3039?  It is a bill indtroduced by Representative
>Dan Schaefer to replace the Income Tax with a fifteen percent
>national sales tax.  
>
>If you want more details read on... but whether you do or not I 
>certainly hope you give your representative and two senators    a call,
>fax, email or smoke signal to tell them you want this bill supported.

No way I'll support it.  I believe this is just a scam for the
government to collect MORE taxes, not less.  Next they'll tack on a
value-added tax (already under serious consideration) to all goods and
services at various levels of the production process.  That would
raise the price of goods and services to all of us, and they would
charge the sales tax on top of that!

In article <4q7so3$ul@nntpa.cb.lucent.com>, rudy@cbnews.cb.att.com says...

>Then again, maybe not. It depends on how many of us get off
>our duffs and tell our congresspersons to get off theirs as
>well to suppor H.R. 3039.  

>What is H.R. 3039?  It is a bill indtroduced by Representative
>Dan Schaefer to replace the Income Tax with a fifteen percent
>national sales tax.  

I like Harry Browne's plan better.  He'd eliminate the income tax and
replace it with - NOTHING - .  The gov't already gets plenty of money
to perform it's Contsitutionally authorized functions by means of
exice taxes and tarriffs.  

>If you want more details read on... but whether you do or not I 
>certainly hope you give your representative and two senators a call,
>fax, email or smoke signal to tell them you want this bill supported.

I may do that, but only as an interim measure.  The summary does point
out some serious flaws in the bill though.


>Summary of H.R. 3039 THE NATIONAL RETAIL SALES TAX ACT OF 1996

>    Income Tax Repealed
>    
>   The personal and corporate income taxes, estate and gift taxes and all
>   non-trust fund dedicated excise taxes are repealed.

So far so good.
   
>    IRS Abolished
  
>   The Internal Revenue Service is de-authorized, as of FY 1999, allowing
>   time to close out previous tax years. No successor agency is
>   established.
 
Is there any provision for an immediate shutdown of the IRS's most
abusive operations? 
  
>    Sales Tax Imposed
    
>   A tax of 15 percent is imposed on the gross receipts from the sale of
>   any taxable property or service sold in the United States. The amount
>   of tax paid on every transaction must be disclosed to the consumer.

Big void here.  What's taxable property?  What's a taxable service? 
This retains the worst feature of the Income tax, the ability of Congress
to dole out examptions and such.

>    Use Tax Imposed
    
>   A tax is also imposed on the use or consumption in the U.S. of any
>   taxable good or service for which the sales tax was not paid (i e.
>   goods purchased outside ofthe U.S.)

Isn't it tiring to hear that Congress still thinks the things we do or 
buy outside the country are any of their business at all?  If is isn't
a military secret, let's tell 'em to butt out.
   
>    Exemptions

>   No tax shall be imposed on any good or service:
>     * purchased for resale;
>     * purchased to produce a good or service for resale; or
>     * exported from the United States.

This seems fine on first reading.
   
>    Savings and Investments
    
>   Income going to savings and investments is not taxable until consumed.
>   Investment income is not taxable until consumed.

So you've alredy forgottem the idea was to stop taxing income, huh?

Typical.  
   
>    Personal Consumption Refund
  
>   To ensure that the basic nccessities of life remain tax free, every
>   wage earner receives a refund equal to the sales tax rate times the
>   poverty level (adjusted for the number of dependents claimed) in every
>   paycheck. As a result, every wage eamer will earm up to the poverty
>   level tax free.
  
Where does the money come from for this refund?  Are employers expected 
to figure that out themselves, or are we going to have another bureaucracy
spawned that will handle the accounting of who is a wage earner, how to
set the "poverty level", count dependents, etc.?  

>    Supermajority Required
    
>   A supermajority vote of 2/3 of both Houses of Congress is necessary to
>   raise the sales tax rate or to create any exemptions to the sales tax.

59 % of the Senate is already required to increase taxes.  This hasn't 
been much of a burden to getting them raised so far.  How about adding 
a sunset clause so the tax has to be revoted every term and we get 
another chance to see how our friends really are?
   
>    Burden of Proof
  
>   The burden of proof lies with the govemment in any dispute with a
>   taxpayer.

This should be automatic.
   
>    Seller Compensation

>   Any business required to collect and remit the sales tax may keep 0.5
>   percent of tax receipts to offset compliance costs.

Good.
   
>    State Administration
  
>   Any state choosing to do so may administer, collect and enforce the
>   sales tax. In order to qualify as an "administering state," a state
>   must conform its sales tax base to the federal base. States may keep
>   1.0 percent of their collections to offset expenses.

This is the standard method by which the Feds have been meddling in 
state affairs for some time.  

>    Mortgage Interest

>   Home mortgage interest is not "consumption" and therefore is not
>   taxable.

How is home mortgage less "consumption" than any other interest?

>    Principal Residences
 
>   Sales tax on mortgage principal is payable in equal installments over
>   the life of a 30-year mortgage. Persons who are homeowners on the date
>   of enactment will be deemed to have paid the sales tax on their home.

What if I want a 15 year mortgage?  What if I buy my home for resale?
How about the difference between the amount of my mortgage and the price
I paid for the house?

>    Used Property Credit
    
>   In the case of a taxable good being resold as used (i.e. home or car),
>   a credit shall be given to the seller equal to the amount of tax paid
>   by the buyer of the used property.

So if I sell my house for more than I paid for it I get to keep the 
difference in tax?  How about if I sell my boat?  Other major property?
Does this mean I am effectively penalized if I give it away to a charity?   
   
>    Liability to Collect
    
>   In general, 

"IN GENERAL"?  What on Earth does THAT mean?  As they say, "The devil's
in the deatils".

>   the seller of any taxable good or service has the
>   liability to collect the sales tax, unless the buyer has an exemption
>   certification.

So we're still doling out exemptions?

>    Conversions

>   Any good purchased for business use and converted to personal use
>   shall be taxable. Any good purchased for personal use and converted to
>   business use shall be subject to a credit.

Can you say potential for abuse?  Can you say IRS all over again?
   
>    Governments
    
>   Federal, state and local governments must collect taxes on any sales
>   and pay taxes on any purchases.

I thought the Supremes said one level of gov't couldn't tax another one?
   
>    Non-Profits
    
>   Dues and donations to non-profits are not taxable.  

Dues and donations aren't sales anyway.  We don't need to be exempted 
from something that wasn't taxable.  Or is this the beginning of
another tax reform that isn't really?

>   Sales of non-profits and purchases by non-profits are taxable.

Thus eliminating a major reason for forming a non-profit.

>    Financial Services
    
>   Financial intermediation services are subject to a tax on both
>   explicit and implicit service fees.

Explicit fees are at least understandable.  Who's going to determine
what implicit fees are?
   
>    Credits and Refunds
  
>   Credit and refund mechanisms are established for overpayments.

Isn't it nice to know that there will still be jobs for all those
nice, helpful folks that now work for the IRS?        NOT!
   
This one has enough loopholes and conceptual flaws that it will keep
quite an army of tax collectors busy.  Too bad it won't reduce our tax
burden any, just shift it around.  

You now, the more I hear how the present congress tries to "fix" things,
the better the Libertarians sound.

In Liberty,

Rich

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