Unlikely. if you are in the income strata that qualifies for the IETC, then it is highly likely that your effective tax rate will decline under the FairTax. The FairTax out-Marxes the current combined Federal Tax burden when it comes to progressivity.
I would assume, then, that you also don't believe that tax cuts stimulate the economy by giving the individual more of his money to spend as he chooses.
No, your premise is false: there no tax cut. I DO believe in tax cuts. The problem is that the FairTax is not a tax cut: the same amount of money is extracted from the private sector under either scheme. There is no tax cut.
Back to the tax cut analogy as well as noting that simulations compare a static model rather than the dynamic model of real life.
I'm not talking about static model, I'm talking about Jorgenson, Kotlikoff and other who have simulated DYNAMIC economic effects. ALL those models ignore capital mobility issues; all those models expect perfect foresight; all those models ignore behavioral based changes due to likely monetary accommodation (inflation) etc.
It (entitlement funding) is already buried so what is the difference?
It's currently NOT buried ... that is unless you consider printing the amount of the tax on the "receipt" (your paystub) buried. In fact, it is PREICISELY because Payroll taxes are separate and limited that SS/MC is in funding trouble.
Philosophical issues are nice, but ours are not that far apart; in fact, I dare say that, philosophically speaking, you and I are probably a LOT closer than you might think. It is PRECISELY the nuts and bolts over which I have issues with the FairTax.
In short, the FairTax cannot realize your philosophical desires; don't be fooled!
I have not read your complete reply yet because I couldn't get past this. Does that mean that my prebate will be greater than the EITC? Possible I suppose. However, what about things I buy over the prebate, which is intended to cover the taxes on essentials? The tax on that will be taxes I otherwise would not have paid, since I pay none.
Under the present system I get an undeserved "
Unlikely.
Does that mean you think I am lying?
The FairTax out-Marxes the current combined Federal Tax burden when it comes to progressivity.
Progressivity is only part of the Marxist aspect of the income tax. Fact is, the bash-the-rich liberals always create a back door for the rich to slip out of the taxes they impose. The real Marxist part of it is the ability of central control over who gets what and it seems to more frequently punish the success of the middle class entrepreneur, the backbone of free enterprise, and reward the non-producers, the victim groups. Central to it though, is what it taxes - income. Though they pretend to champion the workers they instead exploit them by taxing the fruit of their labor.
No, your premise is false: there no tax cut. I DO believe in tax cuts. The problem is that the FairTax is not a tax cut: the same amount of money is extracted from the private sector under either scheme. There is no tax cut.
The similarity is in the principle, not the cut. Each gives the individual all or more of their own money with which to do as they please. That would include spending it on either taxable or non-taxable items, saving it, investing it, giving it to friends or relatives (no gift tax with the FT), or giving it to charity. (Does it not bother you that giving your money away is a taxable or deductible event depending on the recipient, as under the present system?)
All of those choices will eventually end up in the private sector before it ends up in the government's pocket, expanding the economy and increasing revenue to the government.
I consider entitlement funding to be hidden for the same reason that you want to end withholding, because it is largely ignored and unseen. Few analyze their pay stubs and just look at what the can put in the bank.
In short, the FairTax cannot realize your philosophical desires; don't be fooled!
I am of the impression that you think the FT is a scam. If so, please answer my previous question as to motive and which special interest is being served. It seems to me that there are many special interests who support the present system and strenuously resist the FT. The only ones I see benefitting from the FT is, .... well, everyone!