There serious questions about how the future under a sales tax scenario might develop: Will the dramatic growth predicted be inflationary (can production capacity grow at least as fast as the money supply)especially since consumption is predicted to decline in the early years?
Can Congress be restrained from morphing the proposed structure in to a multi-tiered rate structure to make it more "fair" ... you know, tax luxury items at a higher rate, tax necessities at a lower rate, etc.?
Can Congress be trusted to avoid raising the rate or expanding the base (taxing imputed rents on owner-occupied property) if changes in purchasing behavior result in substantial revenue shortfalls?
Can Congress be trusted to not start handing out industry favors by exempting healthcare or energy consumption because they are perceived to be too expensive when taxed?
Can Congress be trusted to not curry political favor with "the masses" by steadily increasing the prebate to effectively "soak the rich" and exempt the majority of voters?
Can Congress be trusted to avoid the invasive information gathering, supposedly done away with, by requiring states to collect similar information on consumers and their purchases under the guise of plugging the tax leaks in the system?
Will the "guilty until proven innocent" premise now afforded the IRS really be changed under the FairTax (since you apparently need to show your receipts to prove you paid the tax if audited)?
Do you really think large numbers of people will stop buying new goods just to send a message to Congress? What will that do to the affected industries (for every dollar you refuse to send to the treasury, you deny private industry three dolllars!)? How do you buy used food or used rent anyway?
Your tagline says: "Question Authority." Well I'm questioning it and you seem put off by it. Work with me and maybe we can find common ground.
Um I'm not saying after-tax prices will fall by a substantial amount, but that the RST will not increase prices by a substantial amount(after tax), effectively IMO most people will be paying less taxes with NRST than without it..
There serious questions about how the future under a sales tax scenario might develop: Will the dramatic growth predicted be inflationary (can production capacity grow at least as fast as the money supply)especially since consumption is predicted to decline in the early years?
Consumption is also predicted to increase in anticipation of the tax, but all these things will soon reach a market equilibrium just like any other changes inthe market. Dramatic growth is over time not immediately.
Can Congress be restrained from morphing the proposed structure in to a multi-tiered rate structure to make it more "fair" ... you know, tax luxury items at a higher rate, tax necessities at a lower rate, etc.?
Yes
Can Congress be trusted to avoid raising the rate or expanding the base (taxing imputed rents on owner-occupied property) if changes in purchasing behavior result in substantial revenue shortfalls?
The rate is set by law as well as the base, did you read it? Congress may make changes to laws just like it does now, the difference is we start with a clean slate not a dirty one. and it will be easier for the people to oppose any changes they dont want.
Can Congress be trusted to not start handing out industry favors by exempting healthcare or energy consumption because they are perceived to be too expensive when taxed?
Congress does what the people want and currently they hide what they do..any changes in a new clean law will be debated vigourously and out in the open as opposed to what happens now.
Can Congress be trusted to not curry political favor with "the masses" by steadily increasing the prebate to effectively "soak the rich" and exempt the majority of voters?
Like they do now? More likely they can be restrainded under a new simple clean law than the old loophole ridden law.
Can Congress be trusted to avoid the invasive information gathering, supposedly done away with, by requiring states to collect similar information on consumers and their purchases under the guise of plugging the tax leaks in the system?
Uh what can be more invasive than what we have now? Must report all income, vehicle, medical expenses,deductions, contributions,dependents, interest etc,,LOL... Tax leaks are plugged at collection points not the end user, except for business exemptions. A straw argument.
Will the "guilty until proven innocent" premise now afforded the IRS really be changed under the FairTax (since you apparently need to show your receipts to prove you paid the tax if audited)?
Another straw argument, no receipts need be kept by the consumer.
Do you really think large numbers of people will stop buying new goods just to send a message to Congress? What will that do to the affected industries (for every dollar you refuse to send to the treasury, you deny private industry three dolllars!)? How do you buy used food or used rent anyway?
People will at least have the opportunity to send a message that they dont now. It doesn't take much to get Congresses action, just like a sick out for a few days..the message can get to them without any real damage to businesses. Hunt, fish, grow, campgrounds, you know like the old days.
Your tagline says: "Question Authority." Well I'm questioning it and you seem put off by it. Work with me and maybe we can find common ground
I am not put off by you questioning authority, but would hope you really investigate and consider the NRST and not stay with preconceived ideas. There is lots of common ground for those open to new ideas and those that realize what we have now is not fair or working. I never claimed to have all the answers, and am here to learn and discuss the issue.
thanks for bringing these important questions and answers to light...