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We all really need to stop and think about the what is going to happen to your budget when the new National Sales Tax kicks in.
Ok-bash me for bringing the truth to this board. I know the truth hurts but please keep your bashing in the correct language for a forum where children can access.
Crunch the numbers do the research and stop being a sheep.:dude: Because you are in for a big surprise if you think this is going to help the normal folks.
Hey this plan is going to greatly lower my taxes. Not on the back of the lower and middle income classes. As I have been saying two classes - poor and rich.
Bash me, lash me but you and your wife will have to work two jobs and your children will need to start working at 12 years old to keep the same quality of life you enjoy now. Enjoy it while it lasts.
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Today, US Rep. David Price (D-NC) testified before the House Budget Committee in opposition to proposed national sales tax legislation, H.R. 25. While calling for simplification of the current complex tax system, Rep. Price argued it would be a serious mistake to adopt a national sales tax or a flat tax because of the sharply regressive qualities of each.
“At the heart of the proposals before us today is whether or not the United States will have a progressive or regressive tax system,” Mr. Price said. “I was brought up believing that from those to whom much is given, much is expected. A progressive tax is sound economic policy, and it is indicative of an advanced and enlightened society where those who have reaped the benefits of living in a free, stable, and prosperous land understand their obligation to contribute to the common good.”
H.R. 25 would repeal the individual income tax, the corporate income tax, all payroll taxes, the self-employment tax, and the estate and gift taxes and replace them with a national retail sales tax beginning in calendar year 2005.
Although the bill proposes a national sales tax level of 30 percent, the Joint Tax Committee, the Brookings Institution, Citizens for Tax Justice, and the Institute on Taxation and Economic Policy have all stated that in order to keep federal tax revenues constant, a 50-60 percent national sales tax would be required. Because low and moderate-income Americans devote a higher percentage of their income to consumption than do wealthier Americans, they would be forced to pay significantly more in taxes than under the current system.
“Only Americans in the top 20 percent of income would benefit from converting from an income tax to a national sales tax,” Mr. Price added. “Everyone else would see their tax burden increase by an average of 50 percent.”
Price used the impact of a national sales tax on North Carolinians as an example of the regressive nature of the tax. (folks these numbers will transfer over nation wide).
· In North Carolina, a working family in the bottom 20% income bracket makes on average $9,100 a year. A national sales tax would increase their federal tax burden by $4,214, partly because it would cancel the Earned Income Tax Credit and the child tax credit.
· For a family making an average of $19,700 a year, the national sales tax would increase their tax burden by $4,013. (that is a massive percentage increase!!!!)
· For the next 20% of families, their average tax burden would increase by $3,811.
· For those in the next 60%, their taxes would increase by $2,935.
· Even families making up to $124,000 would see their taxes increase by $600 a year.
But families making between $124,000 and $333,000 would see their tax burden decrease by an average of $4,722 under a national sales tax, and those making over $333,000 would see their tax burden decrease by an average of $151,268. (yes drop in half on the backs of the rest of you).
Because a national sales tax would apply toall new purchases, it would raise the cost of a new $110,000 house in North Carolina to $165,000, raise the cost of a $20,000 new car to $30,000, raise a $100 grocery bill to $150, a $200 bill for medication to $300, and a gallon of gas from $2.00 to $3.00.
Seniors would be especially hard-hit because most are paying very little tax now because they have no income, but instead are spending down their savings and therefore would do much worse under the national sales tax than our current system.
Although the limited time remaining in the current Congress makes it unlikely that H.R. 25 or similar proposals will be considered this year, they are likely to receive significant attention in the next Congress.
[/b]Keep in mind this means...your income will not be lowered with TSP contributions, mortgage interest or having children - no more write offs because NO MORE income tax.
We all really need to stop and think about the what is going to happen to your budget when the new National Sales Tax kicks in.
Ok-bash me for bringing the truth to this board. I know the truth hurts but please keep your bashing in the correct language for a forum where children can access.
Crunch the numbers do the research and stop being a sheep.:dude: Because you are in for a big surprise if you think this is going to help the normal folks.
Hey this plan is going to greatly lower my taxes. Not on the back of the lower and middle income classes. As I have been saying two classes - poor and rich.
Bash me, lash me but you and your wife will have to work two jobs and your children will need to start working at 12 years old to keep the same quality of life you enjoy now. Enjoy it while it lasts.
--------------------------------------------------------------------------------------------------------
Today, US Rep. David Price (D-NC) testified before the House Budget Committee in opposition to proposed national sales tax legislation, H.R. 25. While calling for simplification of the current complex tax system, Rep. Price argued it would be a serious mistake to adopt a national sales tax or a flat tax because of the sharply regressive qualities of each.
“At the heart of the proposals before us today is whether or not the United States will have a progressive or regressive tax system,” Mr. Price said. “I was brought up believing that from those to whom much is given, much is expected. A progressive tax is sound economic policy, and it is indicative of an advanced and enlightened society where those who have reaped the benefits of living in a free, stable, and prosperous land understand their obligation to contribute to the common good.”
H.R. 25 would repeal the individual income tax, the corporate income tax, all payroll taxes, the self-employment tax, and the estate and gift taxes and replace them with a national retail sales tax beginning in calendar year 2005.
Although the bill proposes a national sales tax level of 30 percent, the Joint Tax Committee, the Brookings Institution, Citizens for Tax Justice, and the Institute on Taxation and Economic Policy have all stated that in order to keep federal tax revenues constant, a 50-60 percent national sales tax would be required. Because low and moderate-income Americans devote a higher percentage of their income to consumption than do wealthier Americans, they would be forced to pay significantly more in taxes than under the current system.
“Only Americans in the top 20 percent of income would benefit from converting from an income tax to a national sales tax,” Mr. Price added. “Everyone else would see their tax burden increase by an average of 50 percent.”
Price used the impact of a national sales tax on North Carolinians as an example of the regressive nature of the tax. (folks these numbers will transfer over nation wide).
· In North Carolina, a working family in the bottom 20% income bracket makes on average $9,100 a year. A national sales tax would increase their federal tax burden by $4,214, partly because it would cancel the Earned Income Tax Credit and the child tax credit.
· For a family making an average of $19,700 a year, the national sales tax would increase their tax burden by $4,013. (that is a massive percentage increase!!!!)
· For the next 20% of families, their average tax burden would increase by $3,811.
· For those in the next 60%, their taxes would increase by $2,935.
· Even families making up to $124,000 would see their taxes increase by $600 a year.
But families making between $124,000 and $333,000 would see their tax burden decrease by an average of $4,722 under a national sales tax, and those making over $333,000 would see their tax burden decrease by an average of $151,268. (yes drop in half on the backs of the rest of you).
Because a national sales tax would apply toall new purchases, it would raise the cost of a new $110,000 house in North Carolina to $165,000, raise the cost of a $20,000 new car to $30,000, raise a $100 grocery bill to $150, a $200 bill for medication to $300, and a gallon of gas from $2.00 to $3.00.
Seniors would be especially hard-hit because most are paying very little tax now because they have no income, but instead are spending down their savings and therefore would do much worse under the national sales tax than our current system.
Although the limited time remaining in the current Congress makes it unlikely that H.R. 25 or similar proposals will be considered this year, they are likely to receive significant attention in the next Congress.
[/b]Keep in mind this means...your income will not be lowered with TSP contributions, mortgage interest or having children - no more write offs because NO MORE income tax.
Our consumer drive economy may bite us in the ass sooner than we think. China's getting a taste ofour type of economyand they are lik'n it. Saw a report where they are getting fatter like us. Causing health problems like us.
