April 5, 2004
SCRAP THE CODE:
Linder has the fiery message that Bush may be lacking: Burn down the IRS (Insider, 4/05/04, Atlanta Journal-Constitution)
U.S. Rep. John Linder's favorable rating was so high at the close of his race against Republican colleague Bob Barr in the 7th Congressional District primary two years ago that -- after winning the election -- Linder polled again to find out precisely why he was so popular."It was Fair Tax," Linder said last week in Washington. And if it was good enough for him, it'll sure be good for whatever ails President Bush, he thinks. [...]
"We need to do something bold," he said, sizing up another election in which he sees both the state and nation as closely divided.
The 1994 election that gave us the "Contract with America" turned out 9 million voters who haven't been back since, Linder maintains. A similar bold, conservative move to lure them back to the polls is needed to give Republicans a decisive victory, he believes.
The obvious choice is his proposal for a 23-percent sales tax to replace virtually all the other taxes the federal government collects. Along with the elimination of the Internal Revenue Service.
The White House too favors such a consumption tax, so why not run on it? Posted by Orrin Judd at April 5, 2004 4:03 PM
I'm generally in favor of such tax simplification, but 23%? Ouch. Add that to my state and local sales tax, and it's 31.5%. Yeeeeeouch!
Posted by: PapayaSF at April 5, 2004 5:10 PMi always liked Forbes' idea of a 17% flat tax, but everyone around me kept screaming "what about the poor"?
Posted by: a at April 5, 2004 5:14 PMPapayaSF;
That's one of the key wins of this kind of tax. It makes the cost of government far more obvious.
Posted by: Annoying Old Guy at April 5, 2004 5:43 PMa - The Forbes flat tax proposal also contained a large standard deduction, something like $8000 each for husband and wife and $2000 for each kid. So it more or less exempts the poor. The flat tax actually cuts taxes for the poor and salaried rich, increases it for the investment-earning rich (esp. those in municipal bonds), and for the middle class leaves taxes little changed or slightly increased. That's been its biggest defect politically -- the trend has been to cut taxes for the middle class and raise them on the poor and rich.
Posted by: pj at April 5, 2004 6:02 PMPlus it brings out the underground economy.
Posted by: Sandy P. at April 5, 2004 9:51 PMAn IRS will still be needed, it just won't (usually) target individuals, but instead the point-of-sale businesses, who are supposed to collect the tax.
There will still be some temptation to cheat; Some corrupt people will pocket the tax, and doctor their sales records; Some will split the tax with buyers, to win sales.
Posted by: Michael Herdegen at April 6, 2004 6:23 AMEvery time it comes up some old timer on the Ways and Means committee says Al Ulman and the room empties.
Posted by: Robert Schwartz at April 9, 2004 12:59 AM