Commentary: Doing away with the Internal Revenue Service (IRS) (Replacing With The Fair Tax)

helium.com ^ | Ken Hoagland

[xcamel]

Probably why the vast majority of FReepers shun you .. like the plague.

[groanup]

Yeah, right. Seems to me you attract more attacks than a deer in the headlights.

[xcamel]

And the only modern corollary to a fairtaxer is a buglight out on the back porch - next to a very large swamp.

[lucysmom]

I am not able to bring the first of the first fruits to the House of the Lord because of the immoral, Marxist income tax. I resent it and I will fight it with every fiber of my being.

I will be free when I pay 30% sales tax on a gallon of milk for the kids? (Just wondering - how much will the price of a gallon of milk fall once benefits for the cow are removed by the FairTax?)

[DivaDelMar]

Expenditures up to the poverty level are tax-free. You will be able to choose when you pay tax. The amount of embedded taxation in a gallon of milk is impossible to quantify.

When the Fair Tax is enacted, to the extent that entity level taxation reduces the return on equity portfolios, those returns should increase. Likewise, to the extent that wages are depressed as a result of entity level taxation, the employer portion of FICA and Medicare in particular, wages may increase (more on that), to the extent that prices bear any incidence of corporate level taxation, prices should drop. In the final analysis, you should be able to buy the same market basket of goods post Fair Tax as pre Fair Tax.

A word on wages, because there will no longer be a disincentive to work, more people will enter the work force or begin to look for work. This may initially depress wages, but as foreign capital is attracted, job opportunities should increase and act as an upward pressure on real wage rates.