Thanksgiving Day in the USA

John. No. The Government taxes us down here till there is nothing left to have, We should possibly have a National day of prayer to pray for some thing to have.
Bob

Bob, thanks for the response. I would have answered earlier, but I have been busy calculating my quarterly income tax filing and payment. In the USA, business owners must estimate the revenue they expect to receive over the next 3 months and pay the taxes on that estimated income in advance on a quarterly basis. Those IRS blokes just can’t wait to get the money. I really don’t mind paying the taxes, for they are inevitable along with death. I am truly thankful to be a citizen of this great country where I have the freedom to complain about the income tax structure and other issues without the fear of imprisonment or worse.

There is a movement afoot in the United States House of Representatives to completely eliminate the 16th amendment to the US Constitution, the income tax amendment. The Fair Tax Amendment will create a national sales tax. The effect of this new amendment will just change the way the government collects revenue. It will not increase taxes, nor will it reduce taxes. The biggest benefit to every American Taxpayer including me is that it will relieve us of the burden, and high cost, of calculating the amount of taxes owed. There is not a single US Citizen who completely understands the income tax law. If the same tax return is submitted to 200 Internal Revenue Service Agents for analysis, there will be 200 different answers as to the amount of the tax owed.

Read about the Fair Tax Amendment at:
http://www.realdemocracy.com/taxflash.txt

I suggest that Australian Citizens would also benefit from this type of tax reform legislation.

John Aldrich (Septic Tank Yank)

John. We have had the GST since 2000. We pay 15% on all goods & services purchased after that date at a rate of 15%.
To do this we have to pay all the tax collected over the last 3 months plus our Bussiness activity statement at a rate that is calculated & paid in advance. Very similar. The Government has fully paid all its debts & has a surplus. It is now looking at giving tax breaks to low income earners.
I should think that even though you will pay a slightly higher rate of tax on your goods & services, you will still have to pay on your income.
Bob

Bob, the Fair Tax Act would repeal the Income Tax Amendment, and therefore eliminate to cost of complying with the very confusing Income Tax Code, a major expense for every American taxpayer including American Plumbers. My hope is that the American Plumbers who read the inquiries on this website will contact their representatives in the US Congress urging them to rapidly pass this very important legislation. Secondarily, perhaps the Australian Plumbers could encourage their representatives in Canberra to adopt similar legislation to totally eliminate the unfair income tax. Hell, the Fair Tax will force the drug dealers, the crooks, and the tax scofflaws to pay their fair share of taxes. I predict that the government will gain significant revenue from the pockets of the tax cheaters.

The following is from the website that I suggested you read:

“The Fair Tax is a national retail sales tax on NEW goods and services at the final point of sale for personal consumption above the poverty level. Used goods are not taxed.

The Fair Tax is the best choice for all Americans. It will eliminate the complexity and injustice of our current system entirely by repealing the federal income tax and all federal payroll taxes. The Fair Tax will replace them with a simple 23% federal sales tax on new goods and services.

THE FAIR TAX WILL:

Repeal the 16th Amendment authorizing the taxation of income, capital gains taxes, corporate and self-employment taxes, all payroll taxes including Social Security and Medicare taxes, and all estate and gift taxes.

Provide a universal rebate equal to the sales tax paid on essential goods and services to ensure that no Americans pay taxes on the necessities.

Establish a 23% tax inclusive rate on the purchase of new goods and services in the U.S.

THE FAIR TAX WON’T:

Cause prices to rise, decrease government revenue, unfairly burden the poor or elderly, unfairly burden retailers, be structured as a Value Added Tax, or provide tax loopholes of any kind.

Note: The Direct Democracy Center supports the Fair Tax and the direct democracy that got it this far.

53 percent of the lobbyists in Washington D.C. are there for the sole purpose of manipulating the tax code. Let’s get rid them, the income tax, the tax code and the IRS.”

I am just to the point where it is all over my head. I just make the money,, keep the money rolling in, keep the bills paid, keep the profits up,,,,,nd make sure my CPA doesnt leave any loose ends for the business while everyone gets a slice of the pie.

John & Dunbar, How will the tax be gathered from you, I mean the 23% that you collect from your clients?
The obvious answer is that you will have to do exactly the same as us.
We have to do a BAS That is a Bussiness Activity Statement where we identify all GST collected & then pay that plus a percentage of our own income in advance.
We also get heaps of people asking “what is it if we dont put it through the books? ie no tax! Tax evasion is rampant in the cash economy! especially with pensioners or retireees.
You wont beat them.
Bob
Bob

Bob,

>How will the tax be gathered from you, I mean the 23% that you collect from your clients?<

In the same manner that SALES TAXES are paid now.

>The obvious answer is that you will have to do exactly the same as us.
We have to do a BAS That is a Bussiness Activity Statement where we identify all GST collected <

I have no problem with collecting and passing on to the government the 23% sales tax. The sales tax money is not mine. I did nothing to earn it. I just collect it and pass it on.

>& then pay that plus a percentage of our own income in advance.<

Just what part of “NO TAX ON INCOME” do you not understand? Currently, small businesses pay $724 in income tax compliance costs for every $100 of business income tax paid.

In addition to the $8 billion needed to operate the IRS, at least $250 billion (that is $850 for every man, woman, and child in the USA) must be added to account for the cost of complying with the tax code. Massive amounts of our national wealth are consumed merely by measuring, tracking, sheltering, documenting, and filing our annual income.

>We also get heaps of people asking “what is it if we dont put it through the books? ie no tax! Tax evasion is rampant in the cash economy! especially with pensioners or retireees. You wont beat them.<

I agree, there will be tax cheaters as long as there are taxes. The number of tax cheaters, however, will be greatly reduced if tax on income is eliminated, and the tax cheaters will be easier to catch, and prosecute. The IRS processes 180 million income tax returns annually. With implementation of the Fair Tax Amendment, the IRS will process about 27 million tax returns annually.

» This message has been edited by John Aldrich on 02 December 2003