 Jzyehoshua wrote: Quote:
5-Change our tax system by:
-Instituting a sales tax and eliminating the income tax. Similar to the FairTax suggested by Mike Huckabee, where people keep the money they make and luxury goods are taxed more heavily, this will simplify our tax system, allow the poor to pay virtually nothing extra, and get rid of the tax loopholes that the rich and corporations have been able to avail themselves of.
| It is noted, in the FairTax Legislation:
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(d) Liability for Tax-
(1) IN GENERAL- The person using or consuming taxable property or services in the United States is liable for the tax imposed by this section, except as provided in paragraph (2) of this subsection.
(2) EXCEPTION WHERE TAX PAID TO SELLER- A person using or consuming a taxable property or service in the United States is not liable for the tax imposed by this section if the person pays the tax to a person selling the taxable property or service and receives from such person a purchaser's receipt within the meaning of section 510.
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Government was never granted the power to lay a direct tax upon the inhabitants of the States. A Constitutional Amendment would have to be passed to enable this legislation.
I don't know why this FairTax couldn't be an excise tax like the federal income tax is now. The tax could be imposed on business, with the amount of the sales being the measurement for the amount of the tax owed. Little wonder this legislation isn't getting anywhere. It's WAY too complicated.
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