Abolish the Income Tax: Steve Forbes and Peter Schiff

Discussion in 'Economics' started by achilles28, Apr 15, 2010.

  1. Steve Forbes:

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  2. income tax is fair

    sales tax is not fair

    whoever says the other way is an idiot or filthy rich
  3. BSAM


    Dude are you a comedian or pathetically misinformed?
  4. Thanks for the videos. I watch Schiff a few times a week, but hadn't seen this one yet. It is quite good.
  5. An American family that earns $373,651 is in the 35% tax bracket and has to pay $130,777.85 in federal income taxes. When you add state tax, property tax, personal property tax, sales tax, capital gains tax, etc., people in the upper tax brackets have to pay over half of their income to the government.

    Conversely, a family that earns $68,000 only has to pay 15% in federal income tax or $10,200.

    Therefore one family pays $130,000 while another family pays $10,000 to live in the same country, drive on the same roads, be protected by the same police, firemen and military, send their children to the same schools, etc.

    In a land where everyone is free to work as smart and as hard as they want to earn money, please explain to me in a rational way how it is fair for different people to be required to pay vastly differing amounts of money for the benefit of living in the same country.
  6. Living in your moms basement doesn't entitle you to the labors of Americans who actually work (and thrive) in the real world.

    The Income tax punishes work and productivity (and encourages borrowing and indebtedness).

    A Consumption tax encourages savings and investment (which produces more work and productivity).

    The Income Tax empowers Government to know every detail of it's citizens financial affairs. A wholesale violation of the 4th Amendment.

    A Consumption Tax is totally anonymous. Governments keeps tabs on nobodys finances except the POS-terminals used to collect it.

    The Income Tax is a gigantic source of corruption and lobbying in Washington and costs tens of billions (if not hundreds) to comply with it.

    A consumption tax is 100% transparent, and equally apportioned and cheap to administer. You buy, you pay. This is what the Founders intended and had in place before the 16the Amendment overturned the uniformity clause and allowed for unequal (read: unfair) taxation.
  7. In the UK there is a party that has the same idea. Perhaps you could borrow some ideas.

  8. sumfuka


    1. What would be the fair % level for this consumption tax?

    2. How would the gov tax corporations like walmart? (outsourced all their stuff to china, say eyeglasses made for 50 cents, sold to the US consumer for 50 dollars; they would get taxed for 50 cents ?? since they consumed the product from china for 50 cents.)

    3. How would this consumption tax affect wages, real estate, insurance, blah blah blah, everything that is a tax write-off as of right now?
  9. 1) 10-20%

    2) Same as any State or Sales tax already in place - for example, 15% on sticker price at the register for all end-consumer goods and services. In your example, Walmart would charge 15% on 50$ dollars. 15% of 50 cents (import price of glasses) is considered an import tariff or customs duty and something altogether different than a consumption tax.

    3) Why would a sales tax be applied to wages? A consumption tax is only applied to end-consumer goods and services - a haircut, electronics, car wash, a guitar lesson, a new pair of shoes, a car etc. The point of the consumption tax is to get rid of the income tax and only tax purchases instead of income. Exemptions would be the same as they are now for homes, interest, (maybe) insurance.
  10. Thanks. Libertarian politics is sweeping the globe. People of all walks really unite behind the idea of small Government, low taxes and maximum freedom.

    Here's another UK export I like, Nigel Farage :

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    #10     Apr 16, 2010