Posted on 02/22/2008 1:42:25 PM PST by Man50D
More citizens are joining the millions already on the FairTax bandwagon — and should. We've all known for decades that the antiquated and overburdened U.S. tax system needs to be reformed. The FairTax is not a reform of the present 67,000 pages of tax code. It is a complete replacement tax system based totally on consumption.
The first book by talk-radio show host Neal Boortz and House Rep. John Linder (GA.), "The FairTax Book," was a solid attempt to spread the word across the nation that there is a concerted and well thought out plan to replace the present system. It's been in the making since 1995.
What's unique is the FairTax is working its way from the bottom up through the grassroots FairTax movement and from the top down through two congressional leaders. At the grassroots level, FairTax is moved solely by volunteer citizens. The congressional bills, H.R. 25, sponsored by House Rep. John Linder and S.R. 1025, sponsored in the Senate by Sen. Saxby Chambliss (GA.), are slowly attracting cosponsors and supporters.
The recent release of the second book by the same authors, "FairTax: The Truth, Answering the Critics," disarms those critics who want to discredit the FairTax. The book also educates those who have questions. The more we citizens know about the FairTax, the less effect the critics will have in attacking the FairTax plan or portraying it as something it's not.
I'm not a CPA or tax lawyer, but if I can understand the FairTax, then you can too.
When I talk to people about the FairTax, the question most ask is "What about the mortgage interest deduction?" You should be happy to get rid of it.
(Excerpt) Read more at renewamerica.us ...
Fair Tax ping!
The fair tax, if implimented, needs to be kept extremely low. If it’s not, people will not buy things. This alone can kill business.
The Income Tax is immoral, and should be illegal.
Fair Tax sounds good to me.
How would you implement? And do we really want to test this new tax reform on our Economy? If something were to go wrong or if something was overlooked, we could be hit with a depression that could trust us back to the stone ages......I think Martin Luther said it best...”I have a dream” I think he was speaking about the fair tax.....just a dream...........
Good Idea, how do we do that?
CUT SPENDING!
They sold us global warming, so I guess they can sell anything. Why not a 30+% misnamed sales and services tax?
If you are older than 25, you will never live to see it happen!
You are exactly right. All spending, including pork should go before the people....who wants to spend and on what. After all, it is our money, not theirs, regardless of what they say. I’d bet that if the Fair Tax was held to 10%, the government would have more than they could spend. Remember, our tax system as we know it today is meant to keep the average person broke. Keep the people broke and they can’t fight the government.
That's simply FairTax FUD. It's like when the dems tell the geezers that they will have to start eating dog food if Republicans are elected.
What exactly is that “Tax Rate”? 30%, 40%???? To high.
Gosh, maybe they’ll take their money and invest it instead of “buying things”. Can’t have that now!!
Exactly. Plus, broke people don't run for high office and win.
Under President Obama it will be a VAT.
No thanks. I prefer a flat tax. It seems to be what is working in the former Soviet bloc countries.
I’m with you-—CUT SPENDING!!!
“millions” of supporters?
“millions” hate the IRS and want it to be eliminated.
I doubt very seriously doubt it is “millions” who want a new monthly entitlement welfare check sent to every adult man and woman in the USA every month.
I doubt very seriously doubt it is “millions” who want a 30% sales tax on everything they buy.
People want to be taxed LESS, not taxed differently.
The only here to stay part is the fact this scam is going to be the new “go back to the gold standard” looney group.
Both of the researchers who the fairtaxers paid to study embedded taxes do not agree with that unless employee pay gets cut.
Have forwarded this article to everyone on my email list. Thanks for keeping me on your “ping” list. Look out, behind you, Man50D! The “won’t read it, don’t understand it, don’t wanna understand it, won’t work” bunch will post here soon. I vote we ignore that bunch, and have a discussion with those who have questions and believe in this plan.
-Frangibled
The economy would shift over time from a consumption-based economy to a capital-based economy. This would be healthy for the long term competitiveness of the US and the value of US assets.
Me, too. Can someone please tell me why this "fair tax" is better than a low, FLAT tax?
Were you being sarcastic? Or do you not have a clue what is being confiscated from you by Federal, State, and Local governments?
Joe Six-Pack hasn't a clue what he's paying in taxes.
What horrific reasoning! It "failed" because we don't use it anymore! You might as well say "The Constitution? We tried that! It doesn't work!" Give me a break!
That's how much is already confiscated in my Federal taxes alone.
>>The only here to stay part is the fact this scam is going to be the new “go back to the gold standard” looney group.
Some ideas are difficult to explain, and so they have trouble getting noticed, let alone becoming law, in a democratic society.
That does not mean they should not be explained repeatedly and patiently. As Churchill said, Americans do the right thing— after they’ve tried everything else.
I am fully aware that the US was established as a representative republic, but we abandoned that model in 1938, whether we like it or not. Democracy is what we have, and democracy is rule by demagogues.
Me, too. Can someone please tell me why this "fair tax" is better than a low, FLAT tax?Because a third-tier radio talk show host says so?
It has failed miserably in this country. The income tax began as a flat tax on income when enacted in 1913 taxing 1% of the first $20,000 and 7% over $500,000.We have never had what is commonly known as the Flat Tax (i.e., the Hall-Rabushka Flat Tax) in this country. That you are ignorant of what the Flat Tax is makes me question the validity of your FairTax support.
I would venture to say that those who support the FairTax do not believe in the Global Warming hoax.
I am a FT supporter, but I don’t agree with everything in the current legislation (the Prebate, for instance).
However, if you take the emotion out of the arguments and the doomsayers will stop harping about the sky falling for a bit, then you can take a look at the issue a bit more objectively.
In today’s model (the Income Tax model) your ‘earnings’ are assessed for withholding in each pay period. Your take home pay is something less than your gross earnings. You pay bills, save for the future, plan your retirement, save for the big screen with what’s left, AFTER the government gets what they feel is theirs. As you engage in commerce with that remaining portion, you may generally try to live within your means, but you likely make some purchases. Those purchases include, in their prices, the current embedded tax cost elements that pervade our economy; including those tax monies withheld from your gross earnings.
The FT posits that those embedded tax components amount to approximately 23% of the retail price of goods and services, across the board. No doubt some are higher, some are lower.
In order to replace that embedded tax component, the economists framing the FT model determined that replacing those embedded taxes with a 30% NRST would be required. No voodoo economics involved, just plain ol’ arithmetic.
The result is intended to be this, then:
Cost of goods and services should drop by about 23% on average, then to be assessed the NRST of 30% on the ‘new’ cost, which would essentially be a wash. What you buy for $1 today would cost about $1 under the FT, on average. Again, some higher, some lower most likely.
The end result is that you are generally no better off or worse off under the FT than under the current Income Tax model, based on your current TAKE HOME pay. I do not believe the model works if you assume all wage earners would get to keep 100% of their current gross pay. That’s some serious voodoo economics, IMO.
The upside of the FT comes in when you see the end of the IRS, the leveling of the playing field for US goods and services in the international marketplace, and realize that you have the control over whether to pay the tax or not, by simply making buying decisions.
Now, to that pesky prebate. Given that people generally will be no worse off or better off under the FT model, I would much rather dump the prebate in favor of a lowered FT rate.
AND, I would point out that tax reform is only half the real battle. We also need to focus on spening reform.
It replaces what you pay now -- only it is not hidden, as it is not.
"The simplest fact about the FairTax that is most distorted or outright lied about is that the FairTax is a National Sales Tax ADDED to the price of everything we buy. WRONG!
This cannot be stressed enough. The FairTax is an estimated 23 percent "Embedded" tax in the price of new goods and services. The price you see is what you pay and nothing is added (except for state sales tax) at the register.
With the elimination of taxes on businesses and corporations, this means they would no longer collect the estimated 22 percent embedded tax on all goods we buy now. (Did you know you were paying corporate taxes?) Instead, the 23 percent embedded FairTax would take its place. Yet you, the consumer, will be paying about the same for all products and services that you pay for now.
And, unlike now, what you pay in federal tax will appear on your receipt. For the first time you will be told up front just how much of your money the feds are taking -- you won't need anyone to figure it out for you -- FOR A FEE -- many of whom will be as wrong as you would probably be if you figured it out for yourself.
I can only give you my opinion. The congress has tried time and again to revert closer to the flat tax that was origianlly designed around 1913. But each and every time new rules and interpretations are added to account for, among other things, the myriad tax vehicles and tax situations that arise in modern America.
So, we are left each time with a monster that requires billions of dollars in expenditures each year just to interpret and figure out how much we must pay. Can you imagine? Spending money like a drunken sailor just to define the amount of money you must give to the king?
The FairTax is a simple sales tax that would cut the IRS by 99% and immediately defund it.
The FairTax adds 30% to the cost of goods and services but removes the same amount of deductions from the average paycheck. So purchasing power for most people remains the same.
Instead of punishing thrift and saving as we do under the income tax the FairTax would punish consumption. A tax on consumption has a natural limiting effect.
One thing at a time.
That comes next. And I firmly believe it won't be that hard to do, when the American pwople start getting those receiptsfor their purchases, and are finally awakened to how much the politicans are taking away from them in taxes -- and wasting on graft(earmarks) and unnecessary junk (on site beauty salons for House members only) -- and not showing up for work while they are out for a year or two or three, campaigning for a new job, instead of being present and doing what the people elected them for -- like now.
My question is: How?
Under the income tax the bottom 50% of earners pay little or nothing to the government. What incentive do they have to demand a cut in spending?
Under the FairTax, every time they buy a cup of coffee or a bag of diapers they will see, day to day, what they are paying.
Newsflash: We’re in a recession, headed for a depression. The Fair Tax will help us exit the coming depression by encouraging thrift and investment.
WOW! Thanks for that. As usual with FairTax materials - it’s mostly wrong.
This cannot be stressed enough. The FairTax is an estimated 23 percent "Embedded" tax in the price of new goods and services. The price you see is what you pay and nothing is added (except for state sales tax) at the register.This is just flat out wrong. The bill specifically states the tax would be charged separately from purchase.
Newsflash: We’re in a recession, headed for a depression.Speak for yourself. My business is as busy as it's ever been and I'm still getting calls for more.
The Fair Tax will help us exit the coming depression by encouraging thrift and investment.I'm not sure which one is wishful thinking on your part.
Actually it will be 30% on lower prices. More like around 21% net. You'll be taking home about that much more in your paycheck plus receiving the prebate. Your purchasing power will remain about the same.
There will be a black market in untaxed goods that will make the failed drug war black market look like a lemonade stand.
Not if purchasing power is the same.
And we'll have swat teams busting in doors all over the country to try and find the illegal sales.
There may be some big ticket operations selling plasma tv's and dishwashers under the table. How long do you think they'll last?
Do a two-tiered income tax and a balanced budget amendment. If we can't afford it, we don't spend on it. Prioritize like every American has to do every month.
Those are two pretty good ideas. How do you propose to get the ball rolling?
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