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To: ovrtaxt
Some have falsely claimed that the FairTax promises more money to consumers than what is available.

I'm one of the people that I guess your accusing of making "false claims". You might want to check out these cites from the FairTax Book:

on page 59, they state: “Once the FairTax takes effect, you’ll be receiving 100 percent of every paycheck, with no withholding of federal income taxes, Social security taxes, or Medicare taxes and you’ll be paying just about the same price for T-shirts and other consumer goods and services that you were paying before the FairTax.”

Dr. Jorgenson’s report clearly showed that under his study the worker would not get their complete paycheck, because if he/she did, there would be no cost savings to the business and therefore no price drop associated with worker taxes.

on page 83: “Remember that the poor, along with everyone else—will no longer have Social Security taxes or Medicare taxes removed from their paychecks. Whatever they earn, they get on payday. For most of those we categorize as poor, this would mean an immediate 25 to 30 percent increase in their take-home pay.”

On page 84, they make it clear though that even though the workers will keep all of their paychecks for a big raise, they still believe that because of “the disappearance of the embedded taxes, the total price paid for consumer goods will remain very nearly the same”.

By assuming these two things together, they misrepresent or misunderstand Jorgenson’s report and double-count the tax savings, first by giving them to the worker as a pay raise, and then at the same time assuming that there was a cost savings to the business.

On page 85 they again make it clear the worker will get the pay raise.

And then on page 111, they tie it all together with a Quick Review in which they erroneously assert “Here’s what happens when we pass and implement the FairTax plan:”

“We start collecting 100 percent of our earnings on our paycheck.

“We all get virtual raises, since payroll taxes are no longer siphoned from our checks.

“The prices of consumer goods and services remain essentially the same, with the removal of the embedded taxes compensating for the added consumption tax.”

Do you think that these passages promise more money to consumers than what is available?

Would you at least agree that there is a big difference between:

Description A- We start collecting 100 percent of our earnings on our paycheck. We all get virtual raises, since payroll taxes are no longer siphoned from our checks. The prices of consumer goods and services remain essentially the same, with the removal of the embedded taxes compensating for the added consumption tax.-- The FairTax Book and

Description B- We all get a reduction in our gross paycheck to the amount we currently earn after-tax. We all have the same amount of take-home as we have now because no federal income or payroll taxes will be taken out. The prices of consumer goods and services remain essentially the same, with the removal of the embedded taxes compensating for the added consumption tax.-- Reality under the FairTax

13 posted on 08/26/2005 2:04:52 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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To: RobFromGa; ovrtaxt
Some have falsely claimed that the FairTax promises more money to consumers than what is available.
The Fairtax Director of Research does exactly that.

Don't take my word for it. At the bottom of this page She refers Claire Wolfe to this site for comparing the Fairtax to the income tax. In EACH and EVERY EXAMPLE she shows the fairtax "spendable income" is MORE than the wage earner's gross income from wages...

In some of the examples, for some selective reason, she subtracts 15.3% from the gross income and others she only subtracts 7.65% from the gross...

Maybe the "director of research" could explain where all the extra welfare money for everyone would come from...

Everywhere you look at the fairtax there are no facts, there's only fraud, lies and distortions....Their work resembles a bunch of grade school kids trying to do a school project but can't figure out how to go about it so they just make things up as they go along...

22 posted on 08/26/2005 4:47:06 PM PDT by lewislynn (Status quo today is the result of eliminating the previous status quo. Be careful what you wish for)
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To: RobFromGa
Last time I checked Rob Boortz, along with Dr J are pro fair tax. What is your solution besides nothing? You do manipulate words because A) you do not understand embedded taxes, or B) you are not telling the truth. I would like to believe it is the former.. Nevertheless, pick your poison neither is flattering.

Why you like the Karl Marx tax is beyond me??
25 posted on 08/27/2005 7:45:54 AM PDT by Sprite518
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To: RobFromGa

Why agree to any such things ... there are other possibliities that you haven't considered.

Guess you can't/won't admit that since you believe you are the world's expert on the FairTax.


31 posted on 08/28/2005 7:01:00 PM PDT by pigdog
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