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To: Principled; Jim Noble

The reason we will end up with both, IMHO, as I have posted many times, is that the FairTax will not collect the amount of money that they need to fund the government, and the only remedy they would have with the FairTax is to RAISE THE FAIRTAX rate even higher, which reduces the collections further. I believe the Fairtax rate would start at about 42-45% (exclusive, expressed as a normal sales tax), and quickly move much higher as the taxable consumption base evaporates...

Once it is obvious that the FairTax is unable to raise the necessary taxes, due to evasion, people not buying for whatever reason, people buying used, people buying overseas, people bartering, people using the business exemption, all these reasons, then they will institute an EMERGENCY income tax on the productive "rich" people, probably anyone who makes over $75,000 or thereabouts.

And there will be plenty of votes for that income tax surcharge on the evil rich. People hate the evil "lucky" rich.


226 posted on 09/24/2006 9:40:13 AM PDT by RobFromGa (The FairTax cult is like Scientology, but without the movie stars)
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To: RobFromGa
"I believe the Fairtax rate would start at about 42-45% (exclusive, expressed as a normal sales tax), and quickly move much higher as the taxable consumption base evaporates... "

Too, too funny!!! But at least it a bit less than one of the FairTax opponents has cited of a "94%" tax rate ... but we notice this poster thinks it will "... quickly move higher... " so perhaps he's trying to say "94%" without saying "94%".

And in any event, all without any sort of reputable economic study backing it up. The FairTax OTOH has many such studies all coming in at a revenue neutral rate of around 23% (and even that may be higher than necessary).

239 posted on 09/24/2006 10:33:42 AM PDT by pigdog
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