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To: Bigun
Government consumption is included in the FairTax base in order to put personal and government consumption expenditures on an equal footing."

I cannot help it that you, and a few others here, cannot grasp the great importance of doing that but most folks do so quite readily.

It is true that I don't grasp the importance of putting government and personal consumption on an equal footing. In areas where government directly competes with the private sector, then the same tax rules should apply, however the government is not personal and much of government's activities are not designed to make a profit. Why, in instances where government provides services not-for-profit, should it it (and we) be taxed? Government employees will be taxed, just like the rest of us, when they spend.

What is the logic behind a church purchasing a stove tax free, for its soup kitchen that provides no cost meals to the poor, while charging the government a 30% tax on a tank?

399 posted on 10/19/2006 8:22:25 AM PDT by lucysmom
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To: lucysmom
It is true that I don't grasp the importance of putting government and personal consumption on an equal footing.

Have you not seen this graphic?

Government Growth:
http://mwhodges.home.att.net/piechart.htm

 

Relative Shares of Economy
pre-1930 post WWII
(1947)
TODAY
(2004)

 


Do you doubt,even for a moment, it's validity?

Perhaps you would be kind enough to explain the trend shown here, which by the way has entirely taken place after the current income tax system became firmly entrenched, if it is not in your opinion attributable to the government voting itself advantages over the private sector.

402 posted on 10/19/2006 9:21:45 AM PDT by Bigun (IRS sucks @getridof it.com)
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