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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.

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!

Bottom line is when the vast majority pays a basic federal income tax rate of 15% or less, nobody gives a flying fig about the FT except politicians using the half-truths and buzzwords when addressing "the masses" just to get reelected.

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.

B R A V O ! ! ! Well said! Well said indeed!

The Income Tax: Root of all Evil by Frank Chodorov

... Does that mean you think I am lying?

No, no, no ...I did not mean to imply that. I meant it is unlikely that your effective tax rate will increase. It is possible, but unless you are at the EITC limit, your effective rate will likely decline. It turns out that for most, the EITC is substantially less than their prebate would be. Regardless of your income situation, you receive the same prebate. Your EITC is relative to your income (and, to a lesser degree than the prebate, family size). For most, their tax burden will decline. Even the bottom quintile tax payers pay about 6% effective tax today.

The similarity is in the principle, not the cut.

Here's why it's different: tax cuts stimulate economic activity because more money is left in the private sector to INCREASE consumption. No matter how you try to spin it, if the FairTax is made revenue neutral, the same amount of money is left in the private sector. It might be in different hands, but the aggregate amount is the same. There can be no stimulus.

The principle is NOT the same. It is well known that the FairTax will DECREASE consumption. Any economic benefit from the FairTax is attributed to eliminating the tax on investment making investment, and general income generation a preferred activity. People will choose to work more and to invest more rather than consume ... a VERY different stimulus.

I DO favor tax CUTS. I DO favor eliminating taxation of investment. I DO NOT favor the FairTax as a means of accomplishing that goal.

For all the "choices" you claim you would have, consider this: unless people CHOOSE to spend exactly what they spend today (or more) on TAXABLE items, the FairTax will be short of revenue. GUARANTEED that will result in two actions: increase in the debt (deficit spending) and an increase in the tax rate! The tax rate will increase if only to make SS/MC funding whole. That increase requires no Congressional intervention; it's an administrative action.

I am of the impression that you think the FT is a scam.

No, I don't think it's a scam; I think its a bad idea, based on flawed economics; misrepresented to a poorly informed constituency who largely are united by their hatred of the IRS.