Dedication
In Memory
This issue of the CATS Las Vegas Chapter Newsletter is dedicated to Las Vegas CATS Member Lyle Thompson. Lyle passed away on December 25, 2000, Christmas Day. Lyle, along with his wife Mickey, were long time CATS and NRST supporters, and very active in the local chapter. We will all miss you, Lyle!!
We dedicate the following quotes to you, Lyle:
"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it is the only thing that has." -- Margaret Mead
"Throughout our history, governments, both large and small -- autocratic, democratic, and totalitarian -- have tried to shape destiny...to change peoples' lives. But in the end, we, the people, invariably manage to change government instead." -- Rep. Billy Tauzin, excerpt from his book, "The National Retail Sales Tax. "
Confused??
The subjects of taxes and tax reform are very confusing. No one person fully understands the income tax code; even the so-called "experts" come up with different answers for the same questions. Now that there is agreement that fundamental tax reform MUST take place, new proposals crop up on an almost daily basis.
This may seem overwhelming at times - how does one know which is best and keep up with all the various plans?
Since 1990, CATS has been the leader in researching the impact of different taxes on individuals and society. CATS was instrumental in the creation of H.R. 2001, The National Retail Sales Tax Act of 1999 and fully supports this legislation. We honestly compare our proposal to each and every new plan that appears. If someone does come up with a better idea, we will be the first to acknowledge that fact. We have no 'hidden agenda' or vested interest in seeing a change in the way government collects taxes.
In order to give you some relief from all the conflicting information you are hearing regarding tax reform, here are some of the common myths in the area of taxes and tax reform:
Myth: Americans pay very little in taxes.
Truth: Figuring in federal taxes, state taxes, local taxes, sales taxes, property taxes, excise taxes, capital gains taxes, inheritance taxes... you get the point. Then there is something that those who speak up against tax reform don't want you to know. You're also paying `hidden taxes'. What are these?
Included in the price of EVERYTHING you spend money on are the costs of business income tax and compliance (estimated at between 15-25% of the final price).
One of the big three auto manufacturers recently did a study on the cost of the income tax and its compliance imbedded in the sticker price of a new car. How much do you think it was? Would you believe 24%? Almost one-forth of the sticker price!! That means a $20,000 car would only cost $15,200 without the income tax.
Multiply this across the board on every dollar spent and you can see why those in power hide this fact from you. Add all of the above to compute your actual tax liability. Somewhere in the neighborhood of 45-60% of every dollar you earn.
Myth: The 15% National Retail Sales Tax (NRST) will not generate enough money to fund government.
Truth: The Income tax is so horribly oppressive and inefficient, it costs society over $600 Billion annually. In comparison the NRST costs relatively nothing to collect, places no burden on society and the Government is fully funded.
Economic studies show a whopping 13% growth and probably much more the first year because capital is no longer taxed. This is close to $1 Trillion more to the economy and, since the federal government's take is about 25% of the economy, a $250 Billion increase in revenues.
Just add up the numbers above and the 15% revenue neutral national retail sales tax will generate a $600 billion dollar surplus after the first year. We could pay off the national debt in 6 to 9 years and we could do it while paying no more for products with the sales tax built in than we do now with no sales tax but with our regressive hidden income tax.
Myth: The income tax is progressive and the NRST is regressive. The NRST will hurt the poor and those on fixed incomes.
Truth: First, it is important to note that the federal income tax is much more regressive than we think. The fact is the poor and middle-class carry a substantial hidden income tax burden. When a welfare recipient goes to buy a loaf of bread even though they pay no income taxes directly they will end up paying the income taxes and substantial compliance costs of the farmer, miller, baker, distributor, shipper and retailer that are hidden in the cost of that bread.
Second, the sales tax is much less regressive than is commonly believed. Ultimately, all income is consumed. Savings is simply a deferral of consumption.
The Tauzin-Traficant bill (H.R. 2001) provides a credit equal to the NRST rate times the poverty level against a worker's Social Security payroll taxes. Therefore, all workers will pay no taxes up to the poverty rate. Those below the poverty rate will pay no taxes at all.
We know the truth...the poor and those on fixed incomes will only stand to benefit from lower prices, more jobs, and most of all the rebate system included in H.R. 2001; so that in effect NO ONE will pay sales taxes up to the poverty level.
The myths and lies surrounding tax reform have deep roots that need to be dug up and exposed for what they are. You will play a large part in this by helping others to understand these simple concepts and communicating this knowledge to your elected representatives.
Here is something else to ponder:
The NRST has benefits other than purely economic ones.
One: a return of freedom and privacy - try to put a price tag on those!!
Two: a tax system that does not punish people for being productive under the guise of 'progressivity' i.e., another lie promoting class warfare.
Three: a tax system that's EASY to understand.
Four: NO MORE IRS!!!
Please get the facts on the NRST. Contact CATS at 1-800-767-7577
Excerpt from:
Our Income Taxation:
The Darker Side
By Charles Adams
Adam Smith in The Wealth of Nations sets forth four signs of a bad tax system:
First, a large bureaucracy for administration. Did you know that the IRS, with over 120,000 employees is the largest tax bureaucracy since ancient Rome? Its tentacles reach out and have hold on over 200 million people.
Second, a system that puts taxpayers through "odious examinations ... and exposes them to much unnecessary trouble, vexation, and oppression. "
Third, a system that encourages evasion.
Fourth, a system that obstructs the industry of the people, and discourages enterprise which might otherwise give "employment to great multitudes," i.e. jobs. That obligates people to excessive payments and thereby takes away the funds that would promote commerce, industry and employment.
A national sales tax, if it replaced the income tax, would rid the nation of the evils our income tax has produced and the liberty it has trampled upon. Economic studies indicate it will produce as much revenue as the income tax. It will also comply with the Constitutional command of uniformity. Our descendants, in centuries to come would look back upon us, as we look back upon our Founders, with admiration for delivering future generations from a tax that was oppressive, tyrannical, and corrupt.
20/20 Vision
"A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house....The law will of necessity have inquisical features, it will provide penalties, it will create complicated machinery. Under it men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the taxpayer. An army of federal inspectors, spies, and detectives will descend upon the state."
-- Virginian House Speaker Richard E. Byrd, 1910, predicting the consequences of an income tax.
Jobs back to America!
"A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."
-- Rep. Bill Archer, Chairman, House Ways and Means Committee
