Replies

..and yet the FairTax is "revenue neutral"! Hint: it can't be revenue neutral if purchases of used goods increases significantly.

Sure it can, as the measure of revenue neutral criteria is a static calculation used by Congress and CBO for such measure does not take taxpayer behaviour into account at all. That is one reason static estimation of national budgets and the use of that measure is rapidly changing. Revenue neutrality is no longer the rule governing tax rates or anything else since the Budget Enforcement Act and PayGo rules were allowed to sunset and not revived. It always has been hokey accounting in any case.

The "used goods loophole" will have to be closed first thing.

LOL the used goods "loophole". Is not a loophole but a provision of the legislation that prohibits the taxation of goods more than one time under the FairTax NRST. Tax once but only once is the rule that is explicitly provided for in HR25

Espcially since "used" is not a legal term. Hint: I can call a car you've test-driven "used".

Actually "used" is a legal term defined in the primary way that such terms are establish in most legislation, by explicit definition of what is meant by "used property" in the bill itself.

A fact that tells me that you have not even bothered to actually read the legislation and are merely throwing sphegetti at the wall to see what sticks rather than presenting rational arguments.

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:

`SEC. 1. PRINCIPLES OF INTERPRETATION.

`(a) In General- Any court, the Secretary, and any sales tax administering authority shall consider the purposes of this subtitle (as set forth in subsection (b)) as the primary aid in statutory construction.

`(b) Purposes- The purposes of this subtitle are as follows:

`(1) To raise revenue needed by the Federal Government in a manner consistent with the other purposes of this subtitle.
`(2) To tax all consumption of goods and services in the United States once, without exception, but only once.
`(3) To prevent double, multiple, or cascading taxation.
`(4) To simplify the tax law and reduce the administration costs of, and the costs of compliance with, the tax law.
`(5) To provide for the administration of the tax law in a manner that respects privacy, due process, individual rights when interacting with the government, the presumption of innocence in criminal proceedings, and the presumption of lawful behavior in civil proceedings.
`(6) To increase the role of State governments in Federal tax administration because of State government expertise in sales tax administration.
`(7) To enhance generally cooperation and coordination among State tax administrators; and to enhance cooperation and coordination among Federal and State tax administrators, consistent with the principle of intergovernmental tax immunity.

SEC. 2. DEFINITIONS AND SPECIAL RULES.

`(a) IN GENERAL- For purposes of this subtitle--

`(14) Taxable property or service-

`(A) GENERAL RULE- The term `taxable property or service' means--

`(i) any property (including leaseholds of any term or rents with respect to such property) but excluding--

`(I) intangible property, and

`(II) used property, and

`(ii) any service (including any financial intermediation services as determined by section 801).

`(16) USED PROPERTY- The term `used property' means--

`(A) property on which the tax imposed by section 101 has been collected and for which no credit has been allowed under section 203, and

`(B) property that was held other than for a business purpose (as defined in section 102(b)) on December 31, 2004.

Sure it can, as the measure of revenue neutral criteria is a static calculation used by Congress and CBO for such measure does not take taxpayer behaviour into account at all.

Which is exactly why the calculation is hogwash.

LOL the used goods "loophole".

Oh, I thought from your nick that you were older. Apparently not. When you've been around the block a few times, you'll realize that every loophole is a a provision of some legislation. It becomes a "loophole" after the fact, when someone or other decides he doesn't like the unexpected consequences of the original law.

... merely throwing sphegetti at the wall to see what sticks...

LOL!!! Artful words. A very poignant description.