Boortz and Lidner's Fair Tax - Could it Happen Here?

TPM Cafe ^ | 8/23/05 | Chris Fonzone

[Man50D]

Over the next couple of weeks, we’re going to take a much closer look at Boortz and Linder’s Fair Tax Book, with at least three more posts planned:

The Fair Tax is generating more discussion!

[Man50D]

Ping

[msnimje]

Is there a country anywhere that has a similar system (Fair Tax) and if so, does it work? Aren't the countries that have Flat Taxes doing well?

[Stellar Dendrite]

ping!

[stylin19a]

a 23% consumption tax on all retail purchases

What's considered retail? If I buy a widget at Circus City and use the widget to make a do-dad that I sell at retail, do I pay the tax on the widget ? If so, isn't this just a modified VAT ?

[RWR8189]

I am very wary of the "Fair Tax" and the giant new agency that would have to distribute the rebates.

However I have long been a proponent of the Flat Tax as described by Steve Forbes.

[spyone]

Will never happen. Countries with flat tax are doing great and generally running surpluses. Neither the fair tax or the flat tax will ever happen here although it would be great if it were to come to pass.

[Xenalyte]

I think I know who Boortz is, but who's Lidner?

[Man50D]

That would be classified as a business to business purchase. Business to business purchases would not be taxed. See http://www.fairtaxvolunteer.org/smart/faq-main.html#1 for more information.

[rawhide]

The flat tax will not stop the states from putting their hands on you with their own state income taxes. This will only change the federal tax system.

[adorno]

I am very wary of the "Fair Tax" and the giant new agency that would have to distribute the rebates.

However I have long been a proponent of the Flat Tax as described by Steve Forbes.

Ditto! Exactly! Right on!

Two of the main reasons for changing the tax code is to lower the cost of doing business and simplying the process. If the government is still required to carry a large bureaucracy (a new form of the IRS) for calculating and diistributing rebates, then not much will have changed as far saving money and simplying the government process..

[stylin19a]

thanx....

[Man50D]

I am very wary of the "Fair Tax" and the giant new agency that would have to distribute the rebates.

The Fair Tax would eliminate the giant agency we have now called the IRS. The Treasury department would collect taxes from the states, who in turn collect it from the retailers. See http://www.fairtaxvolunteer.org/smart/faq-main.html#10 for more information.

[junaid]

Republican congressman from Georgia

[Man50D]

I think I know who Boortz is, but who's Lidner?

The last name is misspelled. It is Linder. Congressman John Linder(GA) is the Sponsor of H.R. 25 (Fair Tax Act) and co-wrote "The Fair Tax Book" with Neal Boortz.

[HannagansBride]

Yeah but if you have a flat tax, how are the politians going to control your behavior? I don't think they'll want to give that up!

[upchuck]

The Fair Tax would eliminate the giant agency we have now called the IRS. The Treasury department would collect taxes from the states, who in turn collect it from the retailers.

And, as I understand it, the Social Security Admin, which already has an excellent system for mailing or direct depositing Social Security check each month would be in charge of mailing the pre-bate checks each month.

[Man50D]

Yeah but if you have a flat tax, how are the politician's going to control your behavior? I don't think they'll want to give that up!

You're right. They won't just give it up. That's why people need to contact their Senators and Representatives to let them know what the Fair Tax is about and urge them to support it.

[cricket]

"However I have long been a proponent of the Flat Tax as described by Steve Forbes."

Agree; and logically. . .reasonably; it makes the best cents - in a manner of speaking;

. . .so I do not understand why the 'Forbe's formula' for tax reform is not looked at more seriously.

It just does not have the 'appeal' apparently, of the 'tax the rich' MO; which underscores the 'consumption tax'.

[cricket]

disregard multiple ' '. Yikes - nothing like 'overkill'. . . :^)