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To: GregoryFul

Not true -- there is now a hidden tax in everything people buy when they spend their savings and wages - and that is over an above any overt income/payroll taxes they already "formally" pay. It is caused by the increase in prices caused by cascaded, embedded taxes and compliance costs which are bundled into prices right now.

With the FairTax the manner in which it changes the way taxes are collected alters many things such as this "hidden tax" structure and will help lower prices. It also spreads the tax burden onto all people who consume where presently only a subset of wage earners pay taxes. By spreading taxes over a wider base the amount many people will decrease because more people contribute to the tax revenue.

There are certainly plenty of "productive people" (your words, not mine) who pay little or no tax and it is not based upon the choices they make but is foist upon them (and us) by the ridiculous tax laws. The burdens will change, but most people will be better off than at present helped in part by a greatly rising economy caused by the FairTax and the way it manages the tax system.


203 posted on 09/11/2005 6:09:44 PM PDT by pigdog
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To: pigdog

[There are certainly plenty of "productive people" (your words, not mine) who pay little or no tax and it is not based upon the choices they make ...]

Certainly true. An many of those people don't consider themselves tax "cheats" -- until they mention what they do to people whose entire income is W2 income and see the reaction those people have.

Pidog, you and I disagree on the value of having the FairTax prebate for similar reasons -- I think it is dangerous to have a big chunk of the population voting on spending issues when they will not have to pay for them. Philosophically, politically, and economically, I think the rebate is a bad idea. And it costs us 3% more in FairTax rate to fund it.


210 posted on 09/11/2005 9:31:01 PM PDT by Kellis91789
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