IS THERE ANYTHING THE REPUBLICANS COULD DO? FAIRTAX!!

Nealznuze ^ | 7-9-07 | Neal Boortz

[lucysmom]

The vast majority of “compliance” time that you cite for business is connected with creating financial statements that are eventually used in the tax returns.

They are also a business expense and therefore tax deductible.

[Dutchboy88]

Very good stuff. There are always the unexpected consequences of these kind of radical shifts.

If we are naiive enough to think that widespread fraud will not arise from product and service sellers collecting the tax and then underreporting sales (in order to keep the difference), we are not watching the Enron, etc. world.

And... what about the problem that occurs along the Oregon/Washington border right now? Oregon has high income tax, no sales tax. Washington has high sales tax, no income tax. The residents of WA earn money in WA and travel to OR to purchase goods. What will occur when this begins to be a national event? Earn here, spend elsewhere? You think NAFTA was bad?

Lucysmom, you are right to question whether this will work the way the Book promoters tell us (oh, wait, they aren’t invested in a new system, are they?)

[Inquisitive1]

...If anyone thinks that transition would not come without significant economic costs and losses, they are fooling themselves.

That is what will make it such a hard sell.

[lucysmom]

Lucysmom, you are right to question whether this will work the way the Book promoters tell us (oh, wait, they aren’t invested in a new system, are they?)

Its amazing to me that some are willing to buy into a tax scheme that disguises itself as a grass roots movement without looking behind the curtain to see the businessmen that were willing to invest, literally, millions of their own dollars in developing a system that just happens to leave the source of their income untouched by taxes.

They cite studies by economists that they commissioned (is that why government paying tax to itself is counted as revenue but not as cost?); claim their plan puts an end to lobbying for tax favors while employing lobbyists for perhaps the biggest tax favor of all time.

[Dutchboy88]

I have been out of town for a bit, so just saw your post. You have nailed the problem dead on! Thanks for the heads up on the govt. revenue/but not cost gimmick. Guess I should not be surprised.

The current system has admittedly been complicated over the years, but some of the complication is necessary due to the number of evasion schemes cooked up by the taxpayers (witness the old gimmick of Cook Islands shell companies owned by the guys they bill in the US for “consulting”. Reduced US earnings, no reporting from Cook Islands, oila’, no tax). Some of the complication is due to politicians with questionable agendas.

If the FairTax folks don’t think complications are going to happen all over again with “Exempt this/exempt that” (complete with political favors), they aren’t paying attention to human nature. Nothing is bullet proof (or should I say scoundral proof). Thanks, again.

[Dutchboy88]

I have been out of town for a bit, so just saw your post. You have nailed the problem dead on! Thanks for the heads up on the govt. revenue/but not cost gimmick. Guess I should not be surprised.

The current system has admittedly been complicated over the years, but some of the complication is necessary due to the number of evasion schemes cooked up by the taxpayers (witness the old gimmick of Cook Islands shell companies owned by the guys they bill in the US for “consulting”. Reduced US earnings, no reporting from Cook Islands, oila’, no tax). Some of the complication is due to politicians with questionable agendas.

If the FairTax folks don’t think complications are going to happen all over again with “Exempt this/exempt that” (complete with political favors), they aren’t paying attention to human nature. Nothing is bullet proof (or should I say scoundral proof). Thanks, again.

[lucysmom]

You’re welcome.