Posted on 01/27/2006 7:35:57 AM PST by Marxbites
Somehow I don't think the NYT or NPR are gonna report this...
I knew it was something along those lines but just couldn't quite "get it".
You are absolutely right about that as well.
The FairTax prebate is not really a subsidy but a return of tax money paid to everyone - not just the low end. Nor is it an entitlement, boosting expenses (as do S/S & M/C which ARE subsidys.)
The biggest problem is that we don't know what the differential equations are. Small changes make large changes in only a relatively few iterations. And we are a long way from defining these equations.
But we can easily just keep dropping the tax rate until we see no further positive impact.
Yes, it will take several iterations to refine the equations....but that is no reason to cling to static scoring which is WRONG 100% of the time.
With respect to reducing rates until revenues drop...that is the practical answer to the problem, which simply won't do for the inside the beltway crowd. Each bill is must be scored......http://www.urban.org/publications/1000553.html
I am in total agreement that some dynamic scoring needs to be done on tax law changes, and I am also a supply side, Laffer curve believer. With that said, I don't believe that the entire economy can be accurately modeled and there is always going to be errors made. Smaller changes are easier to estimate.
The FairTax "prebate" is not, in reality, a subsidy for anybody. It is an advance payment on the sales tax a given size family unit will pay on the necessities of life.
The prebate will be sent monthly to each family unit, irrespective of income, if they file the paperwork necessary to receive it (a form similar to the current W-4).
HST, acceptance of the prebate is optional; if one did not want to receive it, one simply would not file for it.
I thought you might, just might, mind you, be "in the business."
I am Mighty Glad you like the FairTax.
Sorry for the late reply, and I did see Boortz's presentation. It makes good sense to incentivise saving and investing and would be a vast improvement.
Now, what about socialist security and drug entitlements?
IMHO, SS, Medicare and the SS Drug plan ought to be privatized -- er, "personalized."
HST, the FairTax leaves SS, Medicare and the SS Drug plan untouched, in respect of payment protocols.
The funding for all three is rolled into the FairTax rate.
To track the benefits an employee is eligible for, one's employer would send a report to the SS Administration reporting said employee's annual FICA wages. That is how it is done now.
I think I also prefer to get govt out of all their "businesses" of perverse incentives outside of the military, treaties and coining the currency.
I also favor a gold standard to fiat.
Just what is it that the states can NOT or should NOT do for themselves??
The Fed's involvement to the large degree it affects state's biz, hampers/dampens state's accountability to it voters IMHO.
Isn't/wasn't that the already reached goal of the socialist/corporatist copycats of the 30's Euro-dictators?
At least then we could vote with our feet as the Founders intended? I dare say the blue states would empty out in a hurry and all the misallocated resources would reallocate where they are treated best.
Just like they derogate "windfall profits" and "gouging", it is plainly the speech of market/economic know-nothings.
Most of here could do a better job than any Dem I've seen, and a bunch of Reps to boot.
If only the whole country would just read Hayek, like my man Ronnie did (and loved), and Thatcher too, we could re-limit the beast back to a constitutional pre-ICC, pre-Fed, pre-New Deal semblance of freedom again.
OT: Ain't it rich that beheadings are shown worlwide to enthuse the base and are cheeered, but a bomb headed Mo-ham-head cartoon is verboten.
Time for some serious vitrification, IMHO, make em glow!
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