Bush considering to abolish income tax system

cashmoney · #1 08-12-2004, 12:25 PM

NICEVILLE, Fla. (Reuters) - President Bush (news - web sites) said on Tuesday that abolishing the U.S. income tax system and replacing it with a national sales tax was an idea worth considering.

"It's an interesting idea," Bush told an "Ask President Bush" campaign forum here. "You know, I'm not exactly sure how big the national sales tax is going to have to be, but it's the kind of interesting idea that we ought to explore seriously."

Republican economists who speak regularly to the White House have said that the Bush campaign has been mulling the idea of an overhaul of the tax code as part of an agenda for a second term should Bush win reelection.

This would definitely win him support, even from the dixie chicks.

Kevin · #2 08-12-2004, 01:01 PM

The biggest problem I see with this is the devestation that will happen to anyone who majored in accounting, CPA's, IRS Agents, etc. Too many people have tied up their entire personal worth in the existance of a complicated tax system.

Also, it would make it MUCH easier to avoid paying taxes. Just buy things from Canada, Mexico, Europe, China, whatever. I guess IRS Agents could figure out some way to enforce a use tax on those items.

I don't think it'll fly.

DeltAlum · #3 08-12-2004, 01:18 PM

Interesting idea.

In theory, it would put the wealthy and poor at the same "rate." Is that fair? Maybe it is, because the wealthy will buy a lot more and, thus, pay "higher" taxes. It would at least probably get rid of all of the loopholes higher income taxpayers use to skirt income taxes.

In terms of buying things from out of the country, Customs would have to do something to be sure duties are paid.

I'm sure there are a whole lot more problems I haven't thought of and I'm looking at this initially in an extremely elementary outlook.

But, on the face of it, maybe it would be a good idea.

Besides, I'm mad at our CPA right now. I'm sure he would find other stuff to do if Income Taxes went away.

honeychile · #4 08-12-2004, 01:24 PM

I'm for it.

It surely wouldn't be the first time that someone majored in something that became obselete.

CSUSigEp · #5 08-12-2004, 01:53 PM

Hes not considering it, you can tell just by the way it is worded. Someone suggested it, and Bush not wanting to be rude said it is interesting...

swissmiss04 · #6 08-12-2004, 02:07 PM

It wouldn't fly because the wealthy would figure out a way to buy their goods from overseas and avoid paying tax on it (through some miraculous loophole). The lower and middle classes wouldn't be able to do this. I say they reform the income tax laws instead.

There are places here in AL that have 10% sales tax. Adding another percentage or two would really chafe a lot of people the wrong way.

PhiPsiRuss · #7 08-12-2004, 02:29 PM

The biggest problem is inequity, but it would turbo-charge the economy. You could probably add 1-2 points of GDP growth on top of what we get now, and do that on a consistant basis.

I wouldn't worry about legal tax evasion, because the wealthy people who want to do that are already doing that.

Kevin · #8 08-12-2004, 02:44 PM

Quote:

Originally posted by PhiPsiRuss
The biggest problem is inequity, but it would turbo-charge the economy. You could probably add 1-2 points of GDP growth on top of what we get now, and do that on a consistant basis.

I wouldn't worry about legal tax evasion, because the wealthy people who want to do that are already doing that.

You sure Russ?

I think it'd encourage a great deal more savings. Perhaps a flat income tax would be smarter. Just 15% across the board with no loopholes or exceptions.

It'd never happen because politicians love to give tax credits and concessions and such to this group and that. Our tax code is one of the most used and abused things that our government has at its disposal.

PhiPsiRuss · #9 08-12-2004, 02:49 PM

Quote:

Originally posted by ktsnake
You sure Russ?

I think it'd encourage a great deal more savings. Perhaps a flat income tax would be smarter. Just 15% across the board with no loopholes or exceptions.

It'd never happen because politicians love to give tax credits and concessions and such to this group and that. Our tax code is one of the most used and abused things that our government has at its disposal.

I'm not sure about the numbers. Just a guess.

It would increase savings, and that's always good for the economy in the long-run.

Flat tax with no exceptions? I'd support it, but you're right about political support. A more realistic possibility would be a single tax rate with limited exemptions and deductions. Jerry Brown proposed that the last time he ran for President.