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Reload this Page Tax systems and reform. Oh what fun.

Economics Discuss Economics here.

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  #51 (permalink)  
Old 06-25-2008, 02:11 PM
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Originally Posted by xjoe3x View Post
The fairtax would bring jobs here.
How? Cause it's still cheaper to produce crap in China/Taiwan/Tailand/Mexico/etc.
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  #52 (permalink)  
Old 06-25-2008, 02:49 PM
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Originally Posted by wannabehippie View Post
According to the SCOTUS the federal government has a right to tax income with our without the 16th amendment.

Without income tax how do you expect to pay for current and future government expenditures.
I didn't say to do away with the income tax, I said to repeal the 16th Amendment and return to the taxation set forth in Article I. The portion in blue was changed by the 16th Amendment.

The Congress shall have power to lay and collect taxes, duties, imposts and excises...No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken. No tax or duty shall be laid on articles exported from any state.
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  #53 (permalink)  
Old 06-25-2008, 02:54 PM
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The problem with a return to pre-16th amendment ways, the US would have to pretty much cancel several treaties that effect the global economy. The GATT '94 (which put the WTO into place) laid out how large a tariff can be. President Bush tried passing a 20% tariff on steel so that steel at home would be stronger, however the WTO found us in violation of the treaty and allowed the EU and other nations to pass tariffs against us (which they almost did til we lowered our tariff)(they almost passed a 30-40% tax on US oranges, and other products that we sell in Europe).
Then let's cancel these treaties.

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The income tax keeps us attached to the world, which although I am against the new WTO, I can see no way in the upcoming future we can do without it.
Attached or entangled in?

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The prices we have now is due to low tariffs, I don't want to see prices on products after tariffs rise. The US no longer manufacturs goods at a rate to keep the country going. So in order to repeal the sixteenth amendment you would first have to return jobs home (so bring manufacturing back) then slowly work us out of the WTO (which will hurt our pocketbooks as the price of everything imported rises), then finally pass all the taxes necessary to keep the government going.
Repealing the 16th Amendment wouldn't require any such thing. You talk about passing all these different taxes to keep the government going but I would propose that we first bring the federal government back within its constitutional bounds and then have the taxes necessary to maintain that level of government.
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"Why?" asks the confused waiter, as the panda makes toward the exit. The panda produces a badly punctuated wildlife manual and tosses it over his shoulder.

"I'm a panda," he says at the door. "Look it up."

The waiter turns to the relevant entry and, sure enough, finds an explanation.

"Panda. Large black-and-white bear-like mammal, native to China. Eats, shoots and leaves."

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  #54 (permalink)  
Old 06-25-2008, 03:49 PM
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How? Cause it's still cheaper to produce crap in China/Taiwan/Tailand/Mexico/etc.
The tax freedom. A reason why many jobs left in the first place.
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Old 06-25-2008, 03:52 PM
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It is not just the lower taxes it is is also the lack of labor laws in China, Mexico and FAR lower wages.

The companies that outsource or move jobs to China, India do so because they get the people there to work FAR longer hours at much lower wages than the US.


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The tax freedom. A reason why many jobs left in the first place.
Last edited by wannabehippie : 06-25-2008 at 03:54 PM.
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Old 06-25-2008, 03:56 PM
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It is not just the lower taxes it is is also the lack of labor laws in China, Mexico and FAR lower wages.

The companies that outsource or move jobs to China, India do so because they get the people there to work FAR longer hours at much lower wages than the US.
Thus the difference between the words "a" and "the".

We would have a big increase in jobs and companies moving their headquarters here because of the tax freedom.
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Old 06-25-2008, 04:58 PM
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I highly doubt that, as prevailing wages are far lower overseas, and even with no taxes it is still cheaper there.



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Thus the difference between the words "a" and "the".

We would have a big increase in jobs and companies moving their headquarters here because of the tax freedom.
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  #58 (permalink)  
Old 06-25-2008, 05:00 PM
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I highly doubt that, as prevailing wages are far lower overseas, and even with no taxes it is still cheaper there.
Doubt all you want. We would have a surge of jobs. We are taking a detriment and making it the best place for business in the world.
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Old 06-25-2008, 05:52 PM
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Doubt all you want. We would have a surge of jobs. We are taking a detriment and making it the best place for business in the world.
With the surge of jobs out of the country, no small surge (which is the best we can hope for with "Fair Tax") will save our county.
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  #60 (permalink)  
Old 06-25-2008, 06:48 PM
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With the surge of jobs out of the country, no small surge (which is the best we can hope for with "Fair Tax") will save our county.
I would say we could expect a higher surge into than we currently have out of. We will become the most tax beneficial country there is.
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