The FairTax Promotes Economic Equality by Thomas Davis

InsideVandy.com ^ | 13 January 2008 | Thomas Davis

[camle]

how is it ‘economic equality’ when only the rich would be able to affoprd new cars, new major appliances, etc.?

seems like someone’s pulling a snow job on us.

[gitmogrunt]

23% National Sales Tax = 100% Black Market Purchases to avoid the 23% Tax.

[Always Right]

By the way, no more embedded tax in the goods and services you currently purchase, which averages around 22%.

The gross misrepresentation continues. That number, which the fairtaxers paid for, includes taxes paid by employees, according to Dr. Jorgenson who did the study for them. In fact those taxes paid by employees, represent the majority of the 22% embedded taxes that the study found. Taxes paid by corporation and their share of the payroll tax only adds about 7% to the cost of the product. It is all smoke and mirrors. Those embedded taxes can not come out of the product unless employees agree to take a cut in pay, which ain't gonna happen. Price go up significantly under the fairtax after the 30% sales tax is added on the price.

[longtermmemmory]

ping + 30% delivery tax.

[syriacus]

Will poor people have to pay the same tax-per-item as rich people?

Stamp Act. Tea Act. Sugar Act.

[Horusra]

The whole “prebate” thing to me doesn’t sound right somehow. If I make 20K$ and say the “poverty line” is 20K$, then they are going to pay me and everyone else in the country a prebate of 4600$?

[longtermmemmory]

That is why we need a LIVING prebate of the full 20k.

[SAJ]

Ya THINK??

;^)

[wastedyears]

Fair Tax Ping

[cake_crumb]

...Don’t forget the single moms working two jobs that Huckabee says the GOP doesn’t care about. Yeah, we’re being snowed, Perot-ed, and if Huckabee gets the nomination, this country is blowed.

[Filo]

Actually, economists expect economic growth to be around 10.5% for the first year, effectively increasing the government's revenue.

BS, but there's no way the government deserves more money at all.

Start the FT rate at 15% with mandatory drops of 1% every 2 years for 16 years. Then lock it in forever (except in times of declared war)and you've got a deal. Well, if you tie the repeal of the 16th to FT passage, anyway.

[cake_crumb]

"By eliminating embedded taxes, the prices of what you buy after applying the 23% consumption tax would hardly change from current prices"

How does he plan to eliminate state and local sales taxes? There's that little thing called the Constitution.

[SAJ]

Absolutely correct, except that the effective 'fair' tax rate is 29.87%, not 23%.

When Nixon put on those idiotic wage-price controls in 1971, I recall doing very nicely by purchasing goods (chemicals in this case) for companies that didn't buy enough in the infamous 'baseline' period, and so thereafter couldn't buy enough for their needs after the controls came on.

The 'fair'y-tale tax would create lots of similar opportunities. LOTS. For example, people on the Gulf Coast would be able to profit very nicely by sailing across the Gulf to Mexico, buying a bunch of whatever goods, and selling them outside the 12-mile limit. Or perhaps even bringing the goods ashore and trunk-jobbing them.

[cake_crumb]

Can you imagine what a 23% tax on food and other nacessities would do to our economy?

[SAJ]

Good point, except that this government has routinely ignored — hell, trampled on — the Constitution for at least 7 decades. The Constitution won’t stop this lunatic and mendacious scheme, unfortunately; it’ll have to die under the weight of its own dishonesty.

[camle]

there are two issues in this campaign that are non starters - illegal immigration and this phoney ‘fair’ tax scheme.

[SAJ]

Sure. It's pretty easy to imagine, actually. The standard of living of everyone except the top 10-15% of earners (roughly) would go down, immediately and permanently.

The fantasy notion that the Regress will get rid of the income tax, ever, is driving this nonsensical idea. Pass a 'fair' tax, and we'll have both a 'fair' tax AND an income tax.

[In veno, veritas]

Considering Prices should be relatively stable, your argument does not follow. But it is interesting I hear the same argument by liberals in the presidential campaign today, but not in regards to the fair tax.

[In veno, veritas]

Not when legislation is in an omnibus bill; that requires that one must expire prior to another being in place.