Posted on 01/26/2023 4:41:48 AM PST by Hostage
FairTax gonna put a tax like 25% at the checkout stand ..... Say What?
Yeah, 25% sales tax ..... uh-huh ..... yep. Maybe 28%, yep.
I know what you're thinking: "OH HELL NO. GTFO!"
I was posting intensely ten plus years ago about the FairTax. Went to Houston, visited Leo Linbeck Jr. who has since passed on.
I studied the history of taxation. The initial GTFO! reactions did not deter, did not phase me. Why?
Because 51 years elapsed between a flawed unconstitutional income tax passed in 1862 (quickly repealed) and the 1913 16th Amendment.
..... 51 fricken years.
So there it was. A freaking huge sales tax and Leo was thinking he was going to sell the American public on this monstrosity? Then I learned how it works and ..... it was beautiful. Still freaky but a needed medicine, not harmful yet shocking, and importantly it would threaten those that focus their life on grabbing power for themselves taking out anyone in the way..
It was revolutionary. It was going to drain the Swamp faster than Schumer can find a camera.
Ok, so what's with this 25%, 23%, 30%, 28% whatever rate, federal sales tax? I mean like GTFO and don't come back.
I talked to Kotlikoff in Boston, we discussed its workings and he admired it in theory and principle but ..... he was like "In your dreams Dr. Chimp, NRST is too big, TOO BIG!"
Um-kay. 51 years.
McCarthy 2.0 .... ahem .... yeah Kevin type .... introduced the damn thing on the House floor day before yesterday. Ok, symbolic I know ..... but it gets the discussion going again. And well, some newbies here looking at this absurd FairTax idea will, if they dig a little, see the light and spread this thing around their social media bringing that 51 years closer, yep.
Ok, there are a lot of components of the FairTax. I am going to describe only two of them in short street parlance so you can be equipped to be a freak among your friends and enemies ..... but you'll be the smartest freak when it comes to this GTFO subject.
NUMERO UNO:
* The same 6-pak of paper towel rolls at Pick-and-Save under the FairTax costs $6.58 out the door.
It's not a mistake. Here's why:
You didn't see these supply chain taxes before, but now you do! Under the FairTax, all the federal ding-dong taxes along the way of the supply chains get right up in your grill!
You were blind, but now you see. And many of you will be screaming "Make me blind again!"
Ignorance is bliss.
But for you that get wise to these hidden pesty bites, you will likely be a little hot to say the least, and you'll want something done about it. Well ..... the FairTax gives you a means to vent. It requires Congress to vote on the federal sales tax rate every year. Over time you'll be able to see which way Congress is taking your federal sales tax rate. All personal and business income taxes are eliminated, only the FairTax is in effect on goods and services at the consumer endpoints, and ..... it will hit everyone right between the eyes.
That 6-pak of paper towel rolls sitting on the shelf today at $6.58? Under a 25% FairTax rate, it will sit on the shelf at $5.26 before taking it to the checkout stand and having a 25% FairTax (NRST) applied to it to bring it to $6.58.
Just to drive it home, why under the FairTax does it sit on the shelf at $5.26? Because all the business supply chain taxes are gone, finito, zero, zippo.
Nyet Comrade. Listen closely doofus one, "It's a tax cut!"
Say what?
Everybody from Warren Buffett to Pee Wee Herman to the panhandler at your grocery-mart gets a rebate. The rebate is set to the FairTax rate applied to the poverty level. If the poverty level for a single individual in your state is $1300 a month, then at a 25% FairTax rate, the rebate to that individual will be $1300 x 25% = $325.
This $325 are taxes you would pay when you spend the monthly poverty amount. But you get it rebated, which mans you pay no taxes up to the poverty line. So the REBATE IS A TAX CUT. The more the rebate is, the larger the tax cut.
Therefore, Conservative Americans will push for lowering taxes by decreasing the FairTax Rate and increasing the Rebate.
Class dismissed.
Illegals and tourist get to add to the kitty. That’s part of the sweet part of it and don’t get the refund.
Yes. The strongest argument against the FairTax is that the 16th Amendment would still be there.
In other words, Congress could pass the FairTax and eliminate all income taxes ..... but ..... at some point in the future sneak a little income tax back in, a little here, a little there, for the children, and what not.
Congress at a time in the future could sneak some income tax back in, and make it grow. We’d have a metastasis of taxinoma, both FairTax and Income tax.
All because the 16th is still sitting there looking pretty with its sinister implications.
So the FairTax authors looked at the 16th raising its ugly head in the future and the thinking was:
1. Can the 16th be repealed? Well yeah, duh. But ain’t gonna happen. Guam will capsize before that happens.
Well, what to do?
2. Build into the FairTax a 7-year Sunset provision. If the 16th isn’t repealed in 7 years, FairTax goes bye-bye.
The bet was we’d like the FairTax so much that we would rush out to repeal the 16th.
Um ..... that ranks up there with 81 million flies voted for Bidung. Congress would just keep extending the Sunset clause.
So yeah, the FairTax and the 16th are a toxic mix
States are Sovereign in their tax jurisdictions.
Yes, states can continue their income taxes.
Tariffs are better BECAUSE THEY PROMOTE DOMESTIC INDUSTRY and raise revenue.
“A Heavy Progressive or Graduated Income Tax”
https://www.conservativeusa.net/10planksofcommunism.htm
“The Aldrich Plan strongly influenced the Federal Reserve Act of 1913, which established the Federal Reserve System.”
“In 1909, Aldrich introduced a constitutional amendment to establish an income tax, although he had declared a similar measure ‘communistic’ a decade earlier. Aldrich was quite candid about his scheme to block the House bill that had been passed, declaring to the Senate: ‘I shall vote for the corporation tax as a means to defeat the income tax.’”
“The compromise passed unanimously in the Senate and by a vote of 318 to 14 in the House. The corporate excise tax would be levied, and the income-tax constitutional amendment would be sent out to the states for ratification—which Taft and Aldrich thought was impossible.”
https://en.wikipedia.org/wiki/Nelson_W._Aldrich
“The 1894 Wilson–Gorman Tariff Act contained an income tax provision, but the tax was struck down by the Supreme Court in the case of Pollock v. Farmers’ Loan & Trust Co. In its ruling, the Supreme Court did not hold that all federal income taxes were unconstitutional, but rather held that income taxes on rents, dividends, and interest were direct taxes and thus had to be apportioned among the states on the basis of population.”
https://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitution
You’ve missed the point entirely. If you can vote, you should pay taxes. No representation without taxation.
Too many retiring boomers.
Any plan that allows normal American to see immediately, at a glance, how much their taxes are will never get off the ground. Income tax withholding was a stroke of genius by the money grabbers. And they know it. Here’s my pie in the sky plan; keep the income tax. Eliminate withholding and make people have to write a check for their taxes for the previous year by April 15 the following year, then see how long the system lasts.
Your point is easily addressed. Boomers who can account for purchases through savings can receive rebate compensation.
The strongest argument against the FairTax is described in #22 above.
Biden has publicly said he does not support raising taxes on incomes below $400,000.
Perhaps his pledge should be formed into a constitutional amendment along the lines of:
No more than two million American residents shall pay more than 37% in federal law tax on their income.
No more than five million American residents shall pay more than 32% in federal law tax on their income.
No more than twenty million American residents shall pay more than 22% in federal law tax on their income.
“quickly repealed”
Not so:
“The Civil War income taxes, which expired in 1872, proved to be both highly lucrative and drawing mostly from the more industrialized states, with New York, Pennsylvania, and Massachusetts generating about sixty percent of the total revenue that was collected.”
https://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitution
Agreed, but there is an even bigger flaw in the example. If eliminating supply chain taxes and then imposing a 25% sales tax results in goods costing the same, but the individual no longer pays federal taxes, then total tax collection has to be much lower. If we all pay the same for goods, pay no income tax, and producers pay no taxes how can total tax revenue remain constant? They want you to believe that your cost of goods plus taxes will decline, producers cost of taxes will also decline, yet they receive the same income from the 25% tax.
“If you can vote, you should pay taxes.”
Twenty-Fourth Amendment
Section 1
The right of citizens of the United States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any State by reason of failure to pay any poll tax or other tax.
Section 2
The Congress shall have power to enforce this article by appropriate legislation.
The ‘Fair Tax’ isn’t.
It is as stupid and rife with pitfalls as the current system, only it makes it easier.
They (the ‘Fair Tax’ proponents) always insist on two horrible things: Tax-inclusive pricing, and a ‘prebate’.
Both of which are the exact opposite of what you want to do when reforming a tax system to make it simpler.
In the current system, the richest 10% pay 90% of all taxes. The poorest pay nothing EXCEPT FOR all corporate taxes, and excise taxes on things like cigarettes and alcohol.
And the stupidest people don’t realize how much ‘corporate tax’ they pay, because they think the evil corporation pays it.
They don’t understand the concept of ‘cost of goods sold’ (an accounting term) which means that all costs are rolled up into the the final cost of the item, so you know if you are selling at a profit or not.
The ‘Fair tax’ is also normally quoted at 27%. (??? Do you want to give a third of your income to the government, poor people?) But with a ‘tax-inclusive’ system that rate is hidden. You know what the price of an item is, but you don’t know how much of that is taxes.
Think of the price you pay for gasoline. How much of that price per gallon is taxes? You don’t know because it is ‘tax inclusive’ price. If you knew that $35 of the $50 you just spent for a fill-up was taxes, you would be even less happy with the price.
Sure you could calculate it, but it requires you to not be stupid. I could go on for an hour on how bad the ‘tax inclusive’ rate is’
And the ‘prebate’ is a nightmare. All Democrats will be trying to out-do each other promising bigger and bigger prebate at every election, until it becomes a guaranteed minimum income.
In short, the ‘Fair Tax’ (as it has been proposed) is a liberal’s dream
“If you can vote, you should pay taxes.”
The income tax was sold on the premise it would be only levied on high income people.
If you can vote, you should pay taxes.”
In the 1920s, most Americans paid nearly nothing in federal tax.
no 1040 tax
no FICA tax
no booze tax
I think there was federal tax on telephone service and gasoline.
Refunds of tax credits except for PPACA probably should be eliminated.
Someone who actually gets it!!
my dictionary says:
“tax...a sum of money imposed on incomes, property, or sales by a government for its support”
not for the support of the lazy or feckless
Yeah right...I paid federal income (plus sales, excise, property, etc. taxes) for most of my 63 years of life and now that I am close to retiring (& close to starting to enjoy/spend my “nest-egg” on “toys”, etc.) you want re-tax my already taxed life savings at 25%? No thanks.
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