White House Backs Off Bush Sales Tax Quip

[Rose Siding]

WASHINGTON - Administration officials on Wednesday denied that President Bush is considering a national sales tax, a day after the Republican incumbent created a stir by calling such a tax "an interesting idea that we ought to explore seriously."

Democratic presidential nominee John Kerry seized on Bush's comments — made while the president was campaigning in Florida Tuesday — and suggested such a plan would create a new tax on working families.

"Families already squeezed by rising health care costs, gas costs and college costs would have to carry a whole new tax burden," Kerry said in a statement.

The flap was prompted by an exchange between Bush and a supporter who asked during a town-hall meeting in Niceville, Fla., about Bush's position on legislation for a national sales tax.
...
Later, two administration officials, who spoke on condition of anonymity, said Bush was not considering a national sales tax.

http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20040811/ap_on_go_pr_wh/bush_sales_tax

flippity, floppity

[napi21]

1. UH OH...Flip flop????? n/t

[VolcanoJen]

4. Flippy the Flip-Flopper strikes again!!

Ya know, I just knew that national sales tax thing was gonna bite him in the ass...

[KansDem]

5. Not a flip-flop...

To Bush, "an interesting idea that we ought to explore seriously" is not a "consideration," or something like that. :crazy:

(/sarcasm)

[Shakespeare]

2. quote from Grover Norquist:

"SHHHHHHHH! Not yet, dumbass! We don't spring that one on 'em till you're in the second term!"

[central scrutinizer]

3. POP - there goes another trial balloon

nfm

[onenote]

6. next up -- return to the gold standard

And then they can trot out abolishing public education...

onenote

[Papa]

7. I thought Bush says what he means, and means what he says

Wasn't he the plain spoken President? Sounds like flip flop.

[TheCentepedeShoes]

8. Cmdr Bunnypants

has no brain to engage before he opens his mouth.

[thecrow]

9. two administration officials, who spoke on condition of anonymity

the mysterious shadow speaks again....!

[David Zephyr]

10. The Flip-Flop Flap.

What a group of morons.

[Fovea]

11. Our glorious leader does not flip flop!

He kinda wobbles as he spins around in the wind.

[kentuck]

12. He flopped before he flipped ??

That was quick ! :)

[Bush_Eats_Beef]

13. Bush demands immediate research into medicinal properties of leeches

[UpInArms]

14. flip-flop and

proof that *Co will say absolutely anything to get votes.

What a box of crap.

[Newsjock]

15. A "quip," they say

But if Kerry had said the exact same thing, it would have been a "proposal."

Another moment when I'm ashamed to be a journalist.

[Bluebear]

16. The GOP only makes "quips and jokes"

"Hey, I was only kidding!" No responsiblity for their words or deeds.

[bringbackfdr]

17. Hopefully, it will get some air time

Kerry's lapse into Senate-speak - I voted for it before I voted against it - still lives. If there is any fairness Bush's sales tax gaffe will live just as long.
Not that I'm betting on it.

[struggle4progress]

18. If we got rid of personal and corporate income tax ...

but eliminated no other sources of revenue, and continued Reagan's trick, using SS surpluses to cover part of our current expenses, and also decided not to allow further deficit spending.

All this is to be covered by a tax on retail sales and food.

What's the tax rate? 34.6% The first 18.5% of this covers the annual deficit and existing debt service.

And using sales tax to cover all federal outlays would require something like a 57% federal sales tax.

Yet another Republican tax-policy "success" ...


Data etc:

2003 service on national debt: 318.1 billions
http://www.publicdebt.treas.gov/opd/opdint.htm

2003 federal deficit (after using 2003 SS surplus as offset): $ 375.3 billions
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table1

2003 federal outlays: $2,157.6 billions
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table1

2003 federal revenue from personal income tax: 793.7 billions
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table1

2003 federal revenue from corporate income tax: 131.8 billions
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0#table1

2003 retail and food sales: $3,756.7 billions
http://www.census.gov/mrts/www/data/html/nsal03.html

Federal sales tax rate needed to cover 2003 service on national debt:
318.1/3,756.7 = 8.5%

Federal sales tax rate needed to cover 2003 federal deficit:
375.3 /3,756.7 = 10.0%

Federal sales tax rate needed to cover 2003 federal deficit and service on national debt:
(318.1 + 375.3)/3,756.7 = 18.5%

Federal sales tax rate needed to eliminate 2003 personal income tax:
793.7/3,756.7 = 21.1%

Federal sales tax rate needed to eliminate 2003 corporate income tax:
131.8/3,756.7 = 3.5%

Federal sales tax rate that would have been needed to eliminate the 2003 federal budget deficit, if no existing sources of revenue were abolished: 536,100/3,756,688 = 14%

Federal sales tax rate that would have been needed to cover all 2003 federal budget outlays, assuming no other sources of revenue: 2,157,600/3,756,688 = 57%

<edit:grammar>