Think about all the hours wasted with accounts figuring out how much your tax bill is and how you gonna divert it from productive activity into tax shelters to lower your tax burden. And the wealthy structure their income so they often pay zero tax. That's not fair but its exactly the reason the income tax is not as progressive as advertised. Under a fair tax, you know exactly how much you pay up front because every one pays the same rate. And if you keep your money in your wallet, its literally untouched by the government. That should be your decision. Of course, if you do choose to spend the money, you will have to pay the tax but even then you determine by your consumption habits just how much the government gets. You decide what the government can live on. How about that - real value for your tax dollars, set by your own choices. Our current system empowers accountants and bureaucrats. The fair tax would empower the individual. We do need to try something better and fairer than a broken system that's been around only since 1913!
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
posted on 08/23/2005 10:07:03 AM PDT
(In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
As they are selling the FairTax plan, if it was logical, it would be great. Every wage earner and businessman still engaged in creating new income would increase their purchasing power overnight by 25% plus get a prebate to boot. Every person living on accumulated wealth would have the same purchasing power as now, and even though they wouldn't receive a big pay raise, they would at least get the prebate.
It sounds great, and if that were actually possible I would be all for it. There would be no losers.
But in my opinion, the plan is being misrepresented. Can you answer the point I raised in my letter about how the plan is flawed. How a business cannot reduce prices by 20-25% if he pays his employees their full paychecks.
Please look at my letter and explain where my logic is incorrect.
And, I've spent more time discussing the FairTax on FreeRepublic this week alone than I spend on taxes both personally and for my business in a whole year. Does that mean that if I quit FR, I can lower my prices?
posted on 08/23/2005 10:31:55 AM PDT
(Afghanistan, Iraq, Iran-- what are we waiting for?)
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