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To: sixmil

the fair tax lobby refuses to collect tariffs,

Again, baloney, the FairTax folks say nothing in regard to tariffs, infact thier proposed legislation keeps the ones now in effect in place and leaves it to Congress what it wishes as the future may be concerned.

Furthermore the HR25 bill imposes a stiff effective tariff on all imports when sold at retail, a burden that does not exist today as regards such items.

You are not going to solve anything by adding 20% what is already and 8% tax in many locales.

Today you must earn as much as 30-40% over what you pay out for consumption paid out as income/payroll taxes to the feds as well as that 8% state sales tax for everything you buy, not including the 20-25% burden embedded into consumer prices on the corporate side of income & payroll taxes.

The NRST does not add anything to what you already give up to the federal government consumer purchases, in point of fact is actually lowers the burden on everyone earning taxable income.

A family of four, for example, could spend $24,980 per year free of tax because they will have received over the course of the year the FCA demogrant totaling $5,745. $5,745 is the amount of sales tax paid on $24,980 in expenditures. That family spending double the "poverty level" or $49,960per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.

The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.

To illustrate examine the tax burden that a family of four will have at various annual expenditure levels as compared to that same family under the current system:

 

H.R.25 "The FairTax Act

 

And that is not to mention the fact that individuals and most businesses are no longer required to file or account for federal taxes under an NRST as under the current system.

81 posted on 11/07/2004 12:30:32 PM PST by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: ancient_geezer
The fair tax folks are the same folks that push for open borders and free trade. To suggest that they will allow tariffs to go up since they don't mention them in their manifesto is the hight of either wishful thinking or downright dishonety.

A national sales tax will be the victim of the same kind of tinkering that the income tax is, so you solve nothing in the long term except for giving people a reason to do all their shopping at swap meets.

83 posted on 11/07/2004 12:38:20 PM PST by sixmil (11/2/2004 - And there will be great wailing and gnashing of teeth)
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