House of reps bill to eliminate all income taxes
 

https://buddycarter.house.gov/upload..._act_118th.pdf

Replacing all taxes with a consumption tax. . . basically a sales and service tax. . .

not sure how this bill will get implemented, and even if its a good idea. . . switching from income earned to good and services purchased . . .

Had to read it to believe it. Snowball chance in hades, but intriguing.

Silly me - I was going to say without an income tax system how does your buddy get paid back ? However I got my answer - 135 pages to describe a "sales tax".

I would like to know who writes these bills.

The IRS is going to be completely restructured. Payroll taxes are voluntary. We will see many more positive changes due to NESARA being in the early stages. No more central banks UN etc

First of many bills coming up in new congress…..with no chance of becoming law.:sad:

It's called the FAIR TAX, there is a web site, & a book. Repeal of the 16th amendment is included in the bill.
I'm all in.

This "Fair Tax" is an excellent idea, ONLY if they do away with the Federal Income tax. This makes it fair for everyone, not just the wealthy carrying the load for everyone else.

Gave it a quick read...(45 minutes or so later...)

I agree with most. Never pass. And even if it did, implementing it would be contingent on repealing the 16th Amendment to the U.S. Constitution and THAT takes convincing a minimum of 38 of the states that it is a good idea.

Scary, though. As always the devil is in the details. Getting rid of the IRS sounds like a great idea but there will still need to be a bureaucracy in place to administer this thing. Also as I read it the individual will be far more responsible for keeping records than they are now, and that could be a real fly in the ointment.

Scariest though: this thing seems tailor-made for social engineering. The bill sets an arbitrary "base rate" which will be subject to periodic adjustment. What is to prevent the government deciding that the purchase of some items should be taxed at a higher rate than others? The bill doesn't say that it will do that, but it doesn't say that it won't. All the government needs to do is to decide that We The People shouldn't have this-or-that, and put the tax on it astronomically high, and Presto! Uncle Sam has at his disposal a unique instrument whereby he can direct the sheep to go in any direction he wants them to, independent of legislative action.

The IRS is a huge pain in the bleep, but in this case...better the devil you know than the devil you don't.

In high school in the 60s we learned that this is a type of regressive taxation designed to shift the burden from the wealthy to the poor.

i.e, i f I earn $40K to support my family, I spend every penny of it and pay tax on every penny spent. I have nothing to save and grow. BUT if I earn $400K to support my family and I spend (lets say) 200K living well and pay taxes at the same rate as the first guy on what I spent, I have left over $200K to invest and grow...and grow...and grow. And I can pass that on to my heirs forever because they won't have to work or pay an inheritance tax. The rich get richer, the poor get poorer!

FWIW In 1944, the top rate peaked at 94 percent on taxable income over $200,000 ($2.5 million in today's dollars)

History of Federal Income Tax Rates: 1913 – 2023

Fresh out of college kids.

What would my CPA do then?

How would this fund Social Security and Medicare?

Social Security and Medicare don't get paid through INCOME tax. They get paid through social security and medicare tax. Yes they all come from income, so yes etymologically they are all income taxes. But only one is -called- "Income Tax." The others are called FICA - which is federal insurance contributions act.

The whole point of getting rid of the income tax is to starve Medicare and Social Security. Payroll taxes will not fund nearly enough for benefits. Gutting Medicare and Social Security is the Republicans' dream.

Except - as I said - income tax doesn't fund Social Security or Medicare. FICA payroll contributions fund it. It's a separate line item on your paycheck. Even if you don't have anything taken out of your paycheck for income tax at all - you'll still see a FICA deduction.

The "Fair Tax Act" has nothing to do with fairness, and everything to do with keeping the poor poor, and the rich, rich. Here's the actual text of the Act:
So - if you buy a condo complex (investment) then you are exempt from paying sales tax on the property. But if you're a homeowner and buy a condo in that complex, you have to pay a minimum of 23% sales tax on it.

How many people in this country, who are currently college students preparing for life away from their parents' homes, will be able to afford a house PLUS 23% of its cost stacked on top of it, by the time they turn 30? What kind of home will they be able to afford?

There's a good looking house in Ocala for $220,000. 1236 square feet, 3bed 2 bath, 2-car garage, built in 2001 so not very old. That sales price will now be 270,600.

Don't forget the states will be responsible for collecting the tax and handing it over to the Fed, and the states have to be paid for THEIR work - so you can just bump the property tax up to cover that expense. Because local/municipal/county property tax is not the same as sales tax. Closing costs on a home like that would be around $8,000.

So the $220,000 house is now almost $280,000 after all is said and done. That's going to make a lot of homebuyers ineligible for their mortgage. Even if they can afford the house and the closing costs, they have just been forced to lower their standards of what they can afford, assuming they need a mortgage (which most people in this country need, if they want to buy a house).

And yet - that rich guy who wants to buy a family compound and write it off as an "investment" won't have to pay a dime.