Posted on 07/19/2006 7:26:18 AM PDT by Arcy
I agree that supply-side works and that the Bush tax cuts caused more economic activity and thus more revenue.
By the same token of economics and dynamic scoring, a huge FairTax added to the selling price of goods (aka the FairTax) will result in a decrease in consumption, and therefore a reduction in the taxable base, and a reduction in the taxes collected.
This reduction in the taxable base will necessitate an even higher FairTax rate causing further reductions in the base until some sort of equilibrium is hit or until the rate is so high that reported economic activity effectively stops and everything is being handled via barter or black market activity.
a huge FairTax added to the selling price of goods (aka the FairTax) will result in a decrease in consumption, and therefore a reduction in the taxable base, and a reduction in the taxes collected.
And you modeled this how? There is a huge income tax added to the selling price of goods now. Remember? They take it before we can spend it. Under the FT scenario they take when we spend it. Same money, same revenue, same goods.
Tell me, why would consumption decrease? NOW you lose 25% of your income before you can consume. THEN you have all of your income and prices are 25% higher. What's the difference? What am I missing?
This reduction in the taxable base will necessitate an even higher FairTax rate
As has been shown on end and is readily accesible on the fair tax website, the base is larger under a consumption tax than under an income tax. Why? Just look at the savings rate for one. We spend more than we earn. Don't you know that?
until the rate is so high that reported economic activity effectively stops and everything is being handled via barter or black market activity.
While you're at it you should also give us the rate that's too high for the income tax. What is it? 30, 40,70 percent? Do you remember the 70 percent days?
Your assertions that the fair tax rate would have to be, whatever you said, 50% are not based on a revenue neutral assumption but some outlandish belief that the fair tax would magically necessitate such a rate. It ain't so Rob. The tax extraction from the economy is a zero sum game as far as these discussions go. You are making up a number. THINK about money and you'll get it.
Or maybe he's just a coward trying to hide from continually getting his shins kicked. It's probably one of the "deflection" tactics they teach in "Salesmanship 101".
You'd think the guy would be up front enough to eventually admit he's wrong but since he's been doing this Chicken Little stuff for over a year now, I'm slowly getting the idea he ain't gonna say so since (in his eyes) Image is Everything to a salesguy ... and that would destroy it.
Enjoy your ability to openly comment on and criticize the FairTax while it lasts...AFFT wants to take that right away from you...
The Americans For Fair Taxation (fairtax.org) are on a mission to squash out any public criticism of the FairTax plan and are attempting to exploit the federal trademark system for the ADMITTED purpose of being able to shut down anti-FairTax websites during the upcoming elections. They have an open application to obtain a service mark for the word "FairTax." Genie Hayes, the communications director for AFFT, openly admitted that the goal of AFFT is to get this service mark and be able to yank any anti-FairTax websites as well as to have total control over any shirts, bumper stickers, or anything of that nature that is printed with the word FairTax. They are attempting to get the strong arm of the federal government to back them up in hindering free speech and open/honest debate.
The FairTax is promising to become a rather prominent issue in the upcoming Congressional elections--and if AFFT succeeds in obtaining this service mark, they are going to be in an excellent position to keep people from criticizing the FairTax Act.
The time for opposition to their application is fast approaching. I know that an application for a service mark can't be opposed just because the applicant's motive is unethical. However, I do believe that there is a very STRONG case that AFFT doesn't meet the legal requirements for obtaining a service mark. The strongest argument is all around us--the phrase "Fairtax" is SYNONYMOUS with H.R. 25 and the Fair Tax Plan.
Unfortunately, as it stands right now, I think they'll win their service mark and they'll be on the road to having the power to tell people that they cannot participate in public debate regarding H.R. 25. Perhaps, at least, the public will be informed of this attempt to filter open and honest critiques.
Since the poster apparently registered with FR only today and posted only this one hitpost and is now banned, the message is very clear - this is all lies. Perhaps from the DU, perhaps from a TP type or other FairTax hater, or perhaps even a terrorist since a booming US economy is the LAST thing the "masked murderers" wish to see.
"So tell us who WON'T be better off under the FairTax."
I'm betting that quite a few of the SQLs on Free Republic will be on suicide watch.
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