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To: RobFromGa
What, are you searching old posts to find one you can have a chance at answering? There is plenty of barrage directed at you on more recent threads.

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.

1,042 posted on 08/09/2006 7:32:28 PM PDT by groanup (Anti fair taxers are profiting from the IRS. How can they sleep?)
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To: groanup
He's been trying to peddle this sort of daydream of his on several current threads and was rebutted severely. I guess since you were nice to him he thinks you're stoopid enuf to believe such trash - so posts it where others won't notice..

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.

1,043 posted on 08/10/2006 7:36:12 AM PDT by pigdog
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