Florida 2006 Senate Debate: on Tax Reform


Bill Nelson: National sales tax raises taxes $4,500 versus income tax

Q: The `fair tax' (a national sales tax on every purchase or service, to replace the Internal Revenue code) would have to be 50% to match the income tax revenue we now take in. What about the 34% of people who don't earn enough to pay any federal income tax?

HARRIS: There would be a 22% decrease in prices because of embedded costs due to income taxes. The fair tax would not charge people at the poverty level, by paying a `prebate' so it's revenue-neutral. It would result in growth in our economy. Imagine keeping 100% of your paycheck, without withholding, and without 5 billion hours of tax compliance annually. It's worthy of debate.

Q: What's wrong with abolishing the IRS and going to a 23% sales tax?

NELSON: The average taxpayer would be paying $4,500 more per year in taxes under that plan than what they do now. 95% of all Americans would end up paying more tax under that plan.

Source: FL 2006 Senate Debate moderated by Tim Russert (Xref Harris) Nov 1, 2006

Katherine Harris: Supports Fair Tax: 23% sales tax to replace income tax

Q: Ms. Harris, you have proposed replacing the Internal Revenue code with a `fair tax', a 23% sales tax, in effect, on every purchase or service. But that includes 23% on your doctor visits, your prescriptions, any Internet purchases; you lose your charitable donations and mortgage deductions. Are you really for this?

HARRIS: You also don't have to pay the Social Security tax; the Medicare tax, corporate taxes, the death tax, self-employment tax; gift tax, capital gains tax; no more tax audits, and all the major headaches of April 15. I advocate the fair tax because I want to cut taxes. The fair tax is a vehicle to consolidate [tax cuts]. America has the most onerous tax system in the world. I've advocated that I will take the fair tax system to the people of Florida so we can debate it, and we can have an educated electorate, and we'll work out any obstacles they envision.

Source: FL 2006 Senate Debate moderated by Tim Russert Nov 1, 2006

Katherine Harris: Income tax requires 5 billion hours for annual compliance

Q: The `fair tax' (a national sales tax on every purchase or service, to replace the Internal Revenue code) would have to be 50% to match the income tax revenue we now take in. What about the 34% of people who don't earn enough to pay any federal income tax?

HARRIS: There would be a 22% decrease in prices because of embedded costs due to income taxes. The fair tax would not charge people at the poverty level, by paying a `prebate' so it's revenue-neutral. It would result in growth in our economy. Imagine keeping 100% of your paycheck, without withholding, and without 5 billion hours of tax compliance annually. It's worthy of debate.

Q: What's wrong with abolishing the IRS and going to a 23% sales tax?

NELSON: The average taxpayer would be paying $4,500 more per year in taxes under that plan than what they do now. 95% of all Americans would end up paying more tax under that plan.

Source: FL 2006 Senate Debate moderated by Tim Russert Nov 1, 2006

  • The above quotations are from Sen. Bill Nelson debated his Republican challenger, Rep. Katherine Harris. The debate, held in the Rose and Alfred Miniaci Performing Arts Center at Nova Southeastern Univ. in Davie Florida, on Oct. 23, 2006. Sponsored by Leadership Florida & Florida PBS..
  • Click here for definitions & background information on Tax Reform.
  • Click here for more quotes by Bill Nelson on Tax Reform.
  • Click here for more quotes by Katherine Harris on Tax Reform.
2008 Presidential contenders on Tax Reform:
Republicans:
Chmn.John Cox
Mayor Rudy Giuliani
Gov.Mike Huckabee
Rep.Duncan Hunter
Sen.John McCain
Rep.Ron Paul
Gov.Mitt Romney
Sen.Fred Thompson 		Democrats:
Sen.Hillary Clinton
Sen.John Edwards
Sen.Mike Gravel
Rep.Dennis Kucinich
Sen.Barack Obama 		Third Parties:
Green: Rep.Cynthia McKinney
Socialist: Brian Moore
Independent: Mayor Mike Bloomberg
Please consider a donation to OnTheIssues.org!
Click for details -- or send donations to:
1770 Mass Ave. #630, Cambridge MA 02140
E-mail: submit@OnTheIssues.org
(We rely on your support!)