Chairman Thomas's tax ideas - VAT for Corporate Tax,, but no FIT change

[papau]

"Bill Thomas of California, chairman of the House Ways and Means Committee, is the ultimate legislative poker player who keeps his hand shielded even from partners. But he showed a few cards during the recent Republican retreat at the Greenbrier resort in White Sulphur Springs, W.Va. His fellow Republican congressmen were astounded. The chairman's deal bore little resemblance to President Bush's plan for Social Security and tax reform. Thomas indicated he would marry Social Security with total repeal of the corporate income tax, which would be replaced by a value-added tax. As for simplification of individual taxes, he indicated that is off the board, contradicting desires of many GOP congressmen.

http://www.suntimes.com/output/novak/cst-edt-novak10.html


Chairman's tax ideas astound GOP

February 10, 2005

BY ROBERT NOVAK SUN-TIMES COLUMNIST

<snip>During the retreat, Thomas revealed some of his cards. While transforming Social Security, he also would repeal the corporate income tax and replace it with a VAT paid by the consumer. Thomas told his colleagues of multiple advantages for the United States in international trade and hinted at a bountiful increase in federal revenue -- money that would be useful in addressing the Social Security shortfall.

Thomas' uncharacteristically buoyant optimism abruptly ended when he turned to the flat tax as a possible simplification of individual taxes. He posed difficult questions to the assembled House members. Would you and your constituents be willing to give up the home mortgage deduction? The charitable contributions deduction? The deduction for state and local income taxes?<snip>

At this point, still using the Socratic method, Thomas asked how many of his colleagues' constituents would welcome walking into a store and paying 30 percent of the retail cost with a sales tax. Once again, the answer was no. Thus, he had swiftly ruled out both the flat tax and the national sales tax, and therefore vetoed individual income tax reform.<snip>

A tax agenda that eliminates the corporate tax but otherwise retains the horrid complexity of the Revenue Code and establishes a VAT will draw huzzahs from the business lobbyists of K Street who normally balk at tax reform. However, the lethal combination of a VAT and the present federal income tax that Thomas proposes always has been unacceptable to conservatives.<snip>

[TomClash]

1. No way in hell a VAT passes the Senate or the House

[Robert Oak]

2. Christ, well the poor should sue in the WTO

as an unfair tax against free trade of their labor.

My God, anything to give the money to the rich and screw the middle class/poor.


This also shows just who is running the country...multinational corporations.