Posted on 09/02/2007 6:42:46 AM PDT by Man50D
When Republican Mike Huckabee met supporters at Knights Stadium last week, more than two dozen showed up wearing the uniform of a group trying to flex its muscle in the presidential primaries.
Dressed in white shirts with "Fair Tax" logos, they're part of a growing movement in South Carolina and around the country pushing for drastic overhaul of the nation's tax laws.
Their group, Americans for Fair Taxation, would abolish the federal income tax and Internal Revenue Service and repeal the 16th Amendment that authorizes them. They would replace it all with a 23 percent national sales tax.
Thousands of Fair Tax supporters rallied in May outside the Republican presidential debate in Columbia. A month later, more than 100 waved signs as would-be candidate Fred Thompson arrived there for a speech.
"We really think that the winner of the South Carolina presidential primary will be a Fair Tax supporter," said John Steinberger, a Charleston teacher and the group's state director.
A handful of wealthy Houston businessmen started the group more than a decade ago. The idea was popularized in a 2005 book co-authored by Neal Boortz, whose syndicated radio show airs on WBT.
Congressional proponents include Charlotte Republican Rep. Sue Myrick. She's among 63 co-sponsors of a House bill that would enact those changes.
Supporters argue that by closing loopholes and taxing what people spend, not what they earn, the sales tax would be more fair. They acknowledge that a sales tax is regressive, falling most heavily on the poor who spend a greater share of income. They say the government would make payments to the poor to help them pay the new tax.
Critics say the change is unrealistic and unworkable, and would create an accounting nightmare that would fall heavily on state governments ill-prepared to handle it.
"
(Excerpt) Read more at charlotte.com ...
Fair Tax ping!
http://www.mises.org/story/1814
http://www.mises.org/story/1768
That said, it’s far too complex an issue to serve as a major platform in a Presidential campaign. Any candidate that tries to use it as a platform will be faced with myriad mindless and misleading bumper sticker slogans, each of which could easily be put to bed in one-on-one conversations with thinking people, but which will be impossible to deal with in large numbers on a national level. And, however impossible the problem is on its own merits, the leftist press, invested in maintaining the current system and the liberal ideology that depends on it, will be dedicated to publishing as much misinformation regarding this subject as possible.
I don’t like Huckabee — he’s a natural tyrant — and I wouldn’t mind seeing him step on his own privates in this regard, but I still hope that he doesn’t adopt the Fair Tax because it needs and deserves — and the American public needs and deserves — a fair hearing in a proper venue.
I am in favor of the fair tax, however, I wonder what Neal Boortz is going to think of Mr Huckabee proposal to introduce a federal law banning public smoking.
I am in favor of the fair tax, however, I wonder what Neal Boortz is going to think of Mr Huckabee proposal to introduce a federal law banning public smoking.Would that be before or after his proposal to increase taxes?
#7 in the list of "Lies you must believe to support the fairtax"
At least the posts here make sense. Perviously I was hustled in what I can only call a “jsck booted’ respnse vby supporters. It was like posting to a FRED Thread. That type of behavior by supporters will only cause big losses for their cause.
BTW I and my wife are retired. We are in the 29% tax bracket PLUS 7.25% State and Local Sales TAx. People think they pay that amount or more based on the Fedral Tax rates. They forget that it is a GRADUATED Income Tax and the upper ranges are a marginal rate of tax, not on the entire (taxable) income. SIC. Mr BOORTZ and his pals will gheta reduction of tax under fair tax, while the rest of the country will be calling it a F* Tax.
Does he think people will be buying a $21000+ economical car and paying close to $30,000 under a “F” Tax? Will the factory workers, sales people, transporters etc be thrown out of work? - the same for many other parts of the economy. So will we need more “F”: Tax to make up the pitfall?
If it is true that the Fair Tax merely replaces the hidden taxes and other tax costs, then the price we pay for goods and services will remain the same. Why is the prebate necessary? I mean, if the poor have the same amount of untaxed disposable income (or government handouts) and if prices remain the same with the Fair Tax added, why the 500 bucks every month?
The poor are paying these hidden taxes today and nobody's crying for them today saying that these hidden taxes are "falling most heavily on the poor who spend a greater share of income". Why the sudden socialistic compassion for "the poor"? To get their vote?
Eliminate the prebate and tout the Fair Tax at 15%. Wouldn't that be more platable to the American people?
If “Fair Tax” supporters could put on a push like all America did for the “Immigration” sell out the Fair Tax would be enacted by years end.
Even Forbes' "flat tax on a postcard" didn't fly, and you can't get simpler than that.
The Fair Tax? Forget it. Not when you still have posters on this forum and articles still being written that say, "Imagine paying the same price for something but having your entire paycheck to buy it." And you get a "prebate" check every month from the federal government for $500! Plus, if you order now ...
Oh, and I have yet to find an income bracket that doesn't save money using the Fair Tax calculator. Yet it's revenue neutral.
Can you explain to me why, if prices and take home pay remain the same under the Fair Tax, the prebate is necessary? You can't. And that's a very simple question.
It’s like Rep. John Linder said, “ pay 35%+ when you earn it or 22% when you spend it “ . I’d much rather pay the 22% on purchases, as would most people .
Isn’t there also a prebate on neccessities for everyone ?
The prebate is necessary so nobody, not even Bill Gates, has to pay taxes on the basics of life. Call it a tax free cost zone. In some states no sales taxes are paid on medicine and food. Can you guess why?
If the car is an import, you'll add a $6300 Fair Tax to the $21,000 sticker price. To make matters worse, your bank will only finance what the car is worth -- $21,000 (less some down payment).
Meaning you've got to come up with, say, a 10% down payment ($2100) plus the Fair Tax ($6300), cash. Got $8400 in the bank laying around collecting dust?
Hey, it could be worse -- you could be buying a new home!
Now, in all fairness, you could buy a used car and avoid the Fair Tax. But, since that thought is occurring simultaneously to all car buyers nationwide, expect the price of used cars to skyrocket. Supply and demand, doncha know.
Or, you can buy a domestic car. According to some Fair Taxers, domestic car manufacturers will reduce the price of their cars by 23% when they remove the hidden taxes, then add the 23% Fair Tax, resulting in that $21,000 car costing the same. You'll still need a down payment and you'll still need to come up with $6300.
That is assuming the car manufacturers will pass on this 23% price reduction to the consumer and not keep some or all of it as profit or give it to the shareholders as dividends. Keep in mind that their foreign competitor is raising their price by 30%. If your competitor did that to you, would your keep your price 30% below his?
I can't argue the fact that, taken at face value, this looks real good for those in the 35% bracket. Those in the 15% bracket, on the other hand, ...
"Isn’t there also a prebate on neccessities for everyone?"
Bill Gates might argue that.
The prebate is equal to the Fair Tax rate times the poverty income level. Since those who are at or below the poverty rate spend most of their money on necessities, the prebate is being touted as a way for the poor not to pay taxes. Though everyone gets it.
Now, prices today contain hidden taxes that the Fair Tax replaces. The poor are paying these hidden taxes today and not getting rebated or prebated today. Why the sudden compassion?
Okay, I’ll bite — what other alternative that’s been presented is better?
The only problem is Rep. Linder, Boortz, and these FairTaxers claim you currently pay 35% when you earn it and 22% when you spend it.“pay 35%+ when you earn it or 22% when you spend it“I can't argue the fact that, taken at face value, this looks real good for those in the 35% bracket. Those in the 15% bracket, on the other hand, ...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.