"...The NRST would, by definition be a highly regressive system that would hurt the middle class far more than the wealthy, and if it ain't complicated enough in the planning stage, just wait a few years...."
THE FAIR TAX IS MORE PROGRESSIVE THAN OUR CURRENT SYSTEM! Please see:
http://www.geocities.com/cmcofer/ft-baird.html
"...The NRST proponents cheerfully remind me that "large purchases" such as major appliances and automobiles would be exempt from the NRST...."
FALSE. Everything is taxed so that there are NO LOOPHOLES to exploit....no reasons for lobbyists to troll the halls of Congress with Cash....looking for a Congress Critter or Senator to give them an exemption for their good or service.
"...Would there be exemptions for lower income people so that each person pays a tax burden more in line with their ability to pay? ..."
YES, that is the net effect of the "prebate" which will be given to EVERY holder of a valid Social Security Number.
"...Would certain people be able to carry a tax avoidance card to not have to pay taxes due to their economic status?...
NO. There is nothing in H.R. 25, The FairTax Act, which would give the government the right to track the purchases.
"...How would you protect the poor - who also need to buy things like dishes every now and again?..."
The Poor are protected in ALL that they purchase by the "prebate" portion of this bill.
"...And let us not forget that complication in that some things would be taxed while others would not be taxed...."
FALSE. Everything is taxed under the Fair Tax and poverty level expenditures are effectively made exempt through the "prebate" system.
"...The reasoning of the NRST crowd seems to be that if they can collect income taxes for the state, they can collect for the feds. No prob. What they overlook is the increased cost to these businesses, many of them barely breaking even, to collect the deferral taxes...."
FALSE. When the Fair Tax is enacted, these businesses will no longer have to comply with the mind-numbingly complex Internal Revenue Code. In it's place, they will need to comply with a simple sales tax. There will be a net savings to each and every retail business.
"...And nowhere would there be any addressing the real problem of federal taxation - the spending glut...."
Correct. H.R. 25 is a bill designed to change the way we generate revenue. Just as the Internal Revenue Code has nothing to do with the spending bills before Congress, neither will the FairTax impact the spending bills directly. What it will do, however, is make the full cost of government visible to all....in a clearly labeled "TAX" on each and every receipt for the purchase of new goods. Concomitant with the increased transparency and visibility, calls for more government programs should naturally decline.
"...The solution to the tax problem isn't a misnomer - a "fair tax" in name only, it will have to be a system in which everybody bears a share of the burden commensurate to their ability to pay, not their need to spend...."
FALSE. That statement sounds strangely like: "From each according to his means, to each according to his needs."--A quote from the Communist Manifesto.
What we need is a system of taxation which encourages savings and investment over consumption. The FairTax rewards the frugal contributor to society and punishes the spendthrift. Stated differently, it seeks to tax NOT what you contribute to our society, but what you take from it.
The author of the article obviously has an agenda and took no time whatsoever to investigate the FairTax Act. DUE DILIGENCE was definitely lacking, but he provided an excellent opportunity to elucidate several facets of The FairTax Act. Thank You for posting this article and providing an excellent opportunity for rebuttal.