As Social Security scheme fails, GOP urges Bush to pursue Nat'l Sales Tax

[Bush_Eats_Beef]

http://news.yahoo.com/news?tmpl=story&u=/nm/20050616/pl_nm/bush_taxes_dc_1

WASHINGTON (Reuters) - The timetable for
President Bush's effort to overhaul the U.S. code was pushed back by two months on Thursday, as the White House grappled with a crammed legislative agenda.

An advisory panel named by Bush in January to study ways of revamping the tax system was given an extension of its deadline until Sept. 30. Originally, the panel had been instructed to report back by July 31. In a statement, the tax panel said, "We were on track to issue our report by July 31. Nevertheless, we are comfortable taking additional time to complete our work."

Led by former Sen. Connie Mack, a Florida Republican, and former Sen. John Breaux, a Louisiana Democrat, the panel has held hearings on such options as a switch to a national sales tax or flat income tax or keeping a version of the current income tax and finding ways to reduce some of its complexity. The panel will offer its recommendations to Treasury Secretary John Snow, who will then report to Bush.

When Bush kicked off the Social Security push, some Republicans suggested he switch gears and pursue tax-reform first. But the tax-reform proposals have the potential to stir controversy as well. Bush has said he wants any proposals to be revenue-neutral, the changes would involve winners and losers as some businesses and households would face higher tax burdens while others would get a lighter burden. One difficult issue the panel is likely to try to tackle is the alternative minimum tax, a levy that was intended to make sure the wealthy pay enough taxes, but has increasingly ensnared middle-class taxpayers.

FROM THE NATIONAL RETAIL FEDERATION:

http://www.nrf.com/content/default.asp?folder=press/release2005&file=NRST-comments.htm&bhfv=2&bhqs=1

WASHINGTON, D.C., June 13, 2005 - The National Retail Federation today announced that it has filed comments with the President's Advisory Panel on Federal Tax Reform urging the panel to reject economically risky proposals to replace the nation's income tax system with a consumption tax or to add a new consumption tax on top of existing taxes.

"The United States should not experiment with a brand new tax system that will put our economic future at risk," NRF said. "It is better to engage in substantial reforms of the income tax that are designed to eliminate some of the major complications in the current Internal Revenue Code and stimulate economic growth without causing major economic dislocation."

NRF's remarks came in response to proposals for tax reform that were presented to the Advisory Panel during a series of hearings this spring. The panel asked for public comments on the proposals last month. NRF on Friday submitted a detailed statement outlining the dangers of various consumption tax proposals. The statement addressed the National Retail Sales Tax proposed by Representative John Linder, R-Va., plans for a Value Added Tax similar to those used in Europe, and other consumption tax proposals.

The NRF statement cited a study commissioned by NRF in 2000 that found that a national sales tax would bring a three-year decline in the economy, a four-year decline in employment and an eight-year decline in consumer spending. The study showed that similar results could be expected if other types of consumption taxes were enacted to replace the current system. NRF argued that consumption taxes are inherently regressive because low-income families spend virtually their entire incomes while wealthier families have larger percentages of unspent income that would go untaxed.

[GetTheRightVote]

1. I would say stop the tax breaks to the wealthy & corporations

Then we would be much better off in this economy, thank you.

:kick:

[Mojambo]

2. Keep digging guys.

2006 could be very fruitful for our side.

[kentuck]

3. I thought they were against taxes ?????????????//

They want to raise everybody's taxes ! Like we're not paying enough for gas!

[mongo]

4. It's more about shifting the tax burden to the poor.

which is what a national sales tax is all about. Put more tax burden on those with the least ability to pay.

[Bush_Eats_Beef]

5. Which the Bush administration calls "encouraging them to save"

Under a National Sales Tax, you can't be taxed until you spend.

So if you don't eat, don't drive, don't go to the doctor, you won;t be taxed.

Let's remember that John Linder's National Sales Tax proposal calls for goods AND services to be taxed: RENT, medical / dental visits, EVERY PENNY YOU SPEND.

[sunnystarr]

6. It's a known fact that it's a regressive tax ...

I can't imagine adding a federal sales tax on top of the 9.25% tax we pay in Nashville now in place of a state tax.

For those who live on SS and the many families who don't have to pay income tax now it would be too huge a burden on top of everything else.

[xray s]

7. I think a winning issue would be privatizing Medicare

In the name of free market capitalism, Bush should push for completely privatizing Medicare, making all people over 65 buy private health insurance plans.

get the government out of health care for the elderly.

Come on George...take the bait...take the bait.

[hedda_foil]

8. Do they really want Americans to stop consuming?

Because if this were to pass, it would have a tremendous dampening effect on consumer spending, which would, in turn, affect the entire corporate sector that depends on Americans' consuming everything in ever-greater quantities.

In other words, a shift to from the progressive income tax to a regressive national sales tax would bring us several steps closer to full-scale economic collapse.

Which may be exactly what they intend.