Posted on 09/22/2005 12:29:37 PM PDT by pigdog
FAIRTAX UPDATE
There is no doubt that the story of H.R. 25, the FairTax, has been pushed into the background by the Katrina disaster, and perhaps that is as it should be. When hundreds of thousands of people are suffering as they are in the aftermath of Katrina, that is the story. The FairTax is, however, still on the minds of the political class in Washington DC.
Congressman Linder tells me that the Republican leadership is more than impressed with the success of The FairTax Book. They have been receiving a steady stream of phone calls, emails, faxes ... and books from constituents demanding action on the FairTax bill. These officials have indicated that they had no idea that there was such a hunger for comprehensive tax reform in this country, and that they have never seen an outpouring of support for any tax reform plan such as the one they've experienced for the FairTax. Right now the expectation is that the FairTax could go before the House for a vote next Spring. If it passes, it's off to the Senate. If it fails, the leadership wants to make it the campaign issue for the 2006 mid-term elections. ...
Passage of the FairTax would constitute the greatest transfer of power from government to the people since the Revolutionary War.
That's why so many politicians are going to have to be drug kicking and screaming to the table. Elected officials don't like to surrender power. The only thing they want to give up less than their power, is their office. If these politicians know that you want the FairTax to get a fair hearing and a vote, than a fair hearing and a vote it shall be.
(Excerpt) Read more at boortz.com ...
When I studied this issue,When you studied the issue? Who cares what the result are of you studying the issue? If there were embedded taxes that increased every level of the supply chain, there would be many economic studies describing this effect (unless you think you stumbled on something undiscovered by all the economists in the US). Why don't you try and find one of these studies?
A 7-8% drop is a given.I disagree. It all depends in the incidence of the taxes currently being paid. In our free trade economy, it is very unlikely that domestic producers can inflate their prices to cover tax costs. Most businesses are not "price makers." If they were, there would not be any pressure to reduce prices after taxes were removed. The incidence of corporate taxes are most likely on labor and the capital holders.
I'm willing to wait and see how that all ends up. I think the point really is that prices will decline substantially due to embedded tax costs.
I think the point really is that prices will decline substantially due to embedded tax costs.If a rational person thought that, wouldn't that person first have to be able to define what exactly "embedded tax costs" are?...Well?
A well is a hole in the ground, Looey. I've already posted a massive amount of informtaion about embedded tax costs.
Shame you haven't read them. Most people have a pretty good idea what they are; guess you're "different".
I've already posted a massive amount of informtaion about embedded tax costs.All from your own imagination. Post a study from an economist.
It looks like the new studies will support about a 10 - 12% decline in pre-tax prices (of US produced goods, of course).Gee, really? What happened to the 20% reduction, is AFT admitting it was all a lie? That sounds a lot like a study with a predetermined result...Didn't AG say awhile back that there was a new study where they thought the (predetermined) new rate would be about 18%? What happened to that?
Why should we beleive any study paid for by AFT or parroted by a fairtaxer at this point?
BTW, phil_will1, what happened to all that talk about debates and how you would set one up?
I've already posted a massive amount of informtaion about embedded tax costs.No you haven't...that's a lie.
Random meaningless numbers might be a "massive amount of information" to you but to any rational person (especially to anyone who's been in business for more than one day) they're just random meaningless numbers.
A well is a hole in the ground,Makes sense you would see it so simplistic. A well usually yields something useful...in your case it's an empty "hole in the ground"
With *tax* do you mean income tax or the current sales tax if any? After I retire, and start withdrawing from my Roth IRA, what income tax do I have to pay on the withdrawal?
Could you please explain to me how a 23-30% sales tax HELPS sales?
Also, if a 'fair tax' is only levied on final retail sales, the 'fair tax' rate will have to be MUCH higher than 23-30%. The feds will spend 2.5 trillion. The GDP is over 11 trillion. Approximately two-thirds of that (more research needed) is consumer spending. 2.5 trillion divided by 7.26 trilion is an inclusive federal sales tax rate of 34%.
You haven't been to the flea markets that I have been to. There are MANY items that are new.
The 'fair tax' would change EVERYTHING. Since it taxes consumption instead of income, consumption WILL fall, and incomes WILL rise. All of the incentives (and penalties) promoted by the current tax code would, in effect, go into reverse.
Considering our multiple deficicts, (federal budget, international trade, consumer debt, etc.) cutting consumption and increasing income might not be a bad thing, but only to a point. But the 'FairTaxers' assume minimal transition costs. They are VERY mistaken. The 'fair tax' would change EVERYTHING.
Approximately two-thirds of that (more research needed) is consumer spending. 2.5 trillion divided by 7.26 trilion is an inclusive federal sales tax rate of 34%.The 23% fairtax lie is, by law, only for the first year. The fairtax teaser rate includes the government taxing itself to make the rate appear lower than it would have to be.
"BTW, phil_will1, what happened to all that talk about debates and how you would set one up?"
YN is the only one who offerred to debate against the FairTax, and he never responded to my requests for his contact info. Of course, even YN isn't brave enough to try to defend the current system.
Sounds like an opportunity for you, Louie. Would you like to defend the current system in a public debate?
"Who cares what the result are of you studying the issue?"
Why are you responding to my posts?
Because he can. Was your reponse suppose to be some kind of private reply that no one else could respond to?
I know, that is just another deception of the 'fairtax'. How can government tax itself? Isn't that just an "embedded tax' ?
Sounds like an opportunity for you, Louie. Would you like to defend the current system in a public debate?I told you before, only if I too can lie and make things up as I go along to make it fair.
BTW, pointing out the fraud and the fallacies of what we know about the Fairtax is a defense of the current system only in your mind.
"BTW, pointing out the fraud and the fallacies of what we know about the Fairtax is a defense of the current system only in your mind."
So you are now denying that you defend the current system? Seems to me that I recall you attributing our financial success as a nation to our wonderful tax system. Of course, if you can deny that you ever refused to acknowledge the validity of price competition, then you can deny anything, right Louie?
Is there a website that I can consult to keep up with your current positions on tax reform? You change your mind so frequently, I get dizzy trying to keep up.
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