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Subject:
Treasury Secretary John Snow and Consumption tax
Category: Business and Money Asked by: moosetail-ga List Price: $20.00 |
Posted:
27 Jan 2003 14:04 PST
Expires: 26 Feb 2003 14:04 PST Question ID: 149227 |
Has Treasury Secretary John Snow ever endorsed or supported the idea of raising most of the Federal taxes through some form of consumption tax (Flat Tax, "Fair Tax", Value Added Tax, Sales Tax, etc.)? Citation needed. I am particularly interested in a direct quote favoring a consumption tax. It would be acceptable to have a reliable news source stating that he favors a consumption tax. |
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Subject:
Re: Treasury Secretary John Snow and Consumption tax
Answered By: justaskscott-ga on 27 Jan 2003 16:57 PST Rated: |
Hello moosetail-ga, Treasury Secretary nominee John Snow has endorsed a flat tax. He was a member of The National Commission on Economic Growth and Tax Reform, which in 1996 issued a report ("Unleashing America's Potential") that recommended a single tax rate. Among other things, the report noted that "Under the current system, income that is used for consumption is taxed once, while income that is saved is taxed again and again." The report stated that "The principles of fairness and neutrality require that all income be taxed the same, whether it is used for consumption or saving ...." "Unleashing America's Potential: A New Tax System for the 21st Century - Commission Recommendations" EMPOWER.org http://www.empower.org/kempcommission/recommendations.html "Unleashing America's Potential: Biographies and Appreciation" EMPOWER.org http://www.empower.org/kempcommission/bios.html According to Jack Kemp, the chairman of the commission, Snow "was a strong voice on the Tax Reform Commission and is totally committed to the commission's conclusion that it is time to replace the failed tax system with a new simplified tax code that taxes income only once at a much lower rate on both labor and capital." "Picking a new economic team with the right stuff", by Jack Kemp (December 12, 2002) Town Hall http://www.townhall.com/columnists/jackkemp/jk20021212.shtml While a supporter of lower taxes in that report, Snow has also been a supporter of balanced budgets, and stated in 1999: "'Well, tax cuts I don't think are a particularly good idea. But tax reform I think is a splendid idea and I hope well focus on tax reform, rather than tax cuts.'" "Treasury Nominee Snow Supports Lower Taxes", by Joseph A. D'Agostino Human Events http://www.humaneventsonline.com/articles/12-16-02/dagostino.htm I did not see any specific instances where John Snow was quoted as supporting a "consumption tax" in particular. As indicated above, he has supported a flat tax that treats income used for consumption the same as income used for savings identically -- rather than taxing income used for consumption less -- and if he has opposed tax cuts in favor of tax reform. Thus it appears that Snow, in effect, has supported a policy that taxes on income used for consumption should be a greater proportion and amount of federal tax revenue. I hope that this information is helpful. - justaskscott-ga I used various combinations of the following search terms on Google: "john snow" "john w snow" "consumption tax" "flat tax" "fair tax" "sales tax" "value added tax" vat tax consumption sales "national commission on economic growth and tax reform" "business roundtable" "committee for a responsible federal budget" |
moosetail-ga
rated this answer:
Thanks for making a real effort on this one and for including your sources. I'll have to get a full copy of the report by the National Commission on Econommic Growth and Tax Reform to be absolutely sure I can apply the proper label to Secretary-to-be John Snow. |
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Subject:
Re: Treasury Secretary John Snow and Consumption tax
From: snapanswer-ga on 28 Jan 2003 15:22 PST |
Justaskscott answered this perfectly. However, I was left with a minor confusion perhaps due to my misunderstanding of the question. The question seems to categorize a flat tax with a consumption tax. Typically, a flat tax is referred to in the context of an income tax rather than a consumption tax. And from Justaskscott's answer, it appears that Snow is in favor of a simplified income tax system, such as a flat tax. A consumption tax would be like the others you identified, such as the value added tax (VAT) or other types of sales or transaction taxes. Just wanted to be sure that a flat income tax was not being confused with a consumption tax. |
Subject:
Re: Treasury Secretary John Snow and Consumption tax
From: moosetail-ga on 30 Jan 2003 21:00 PST |
TO Justasksscott: Re "The "Flat Tax" is not really a consumption tax. The Flat Tax as outlined by Forbes and many, many others is a European Value Added Tax, with an income tax add-on. In Europe, all "value added" is taxed. Under the American version, wage and salary costs are not counted as value added. Instead, they are handled separately. Thus, anyone can fill out a postcard showing his wages and or salaries and pays a percentage on these receipts. These taxes on wage and salary payments would have raised 42 of the total "Flat Tax revenue, and the value added tax would have raised 58% of the revenue. Thus, the flat tax raises more than 50% of its revenue from a consumption tax--the Value Added Tax. |
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