Posted on 01/20/2008 6:29:07 AM PST by Man50D
During an election season, one of the first losers is the truth. The current misinformation campaign against the FairTax has been particularly virulent. Last month the FairTax was being panned by some columnists as a "crackpot scheme," even though it could be collected exactly the same way as its close cousin, the value-added tax, which is the most successful tax in the world. This month the FairTax is being vilified by various columnists as a tax increase for the middle class, even though it would provide a substantial tax cut for two-parent middle class families. Specifically, in a recent column, George Will asked, "Do you want a president (Mike Huckabee, proponent of a national sales tax of at least 30 percent) pledged to radically increase the proportion of federal taxes paid by the middle class?" Similarly, Time magazine's business and economics columnist Justin Fox wrote a blog piece entitled, "The FairTax and its big break for the $200,000-plus crowd."
The FairTax is a national sales tax that would replace the income taxes, the payroll taxes, and the gift and inheritance taxes. It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption. To help you pay the tax, you would get a prebate check or a debit card credit at the beginning of each month equivalent to the amount you would pay when buying necessities. In 2007, that amount would have been based upon $10,210 spending per adult and $3,480 spending per child.
(Excerpt) Read more at worldnetdaily.com ...
Read the HR25. It’s also when you move and folks (college kids) move in and out of your house. Everybody has to sign the affidavit. It’s intrusive and is a continuation of Big Brother gov’t.
FT IS SS reform. I suspect that when that point becomes more widely known, everybody and his lobbyist brother (you’re not one of those are you?? - speaking of conspiracies) are going to want a piece of the action.
“It’s the Spending, Stupid.
That is why the Fair Tax is the wrong solution to the wrong problem.”
Every FairTaxer I know would agree that spending is out of control. However, where we part company is in your insinuation that it is the only public policy problem that we face. In fact, there are a number of other problems which the FT would address and indirectly have a positive impact on spending.
However, there is no magic bullet that I am aware of. If you know of some way to immediately reign in the federal government within constitutional limits, please share it with us.
Does that mean spending will increase?
Odd that she (we assume) is off tonight (though a quick check shows that she just made a guest appearance as part of a WWF tag team.
I’ll go farther than that. It’s the root of all public policy problems. Note this distinction, though: I’m talking about guvmint spending in pursuit of guvmint power. That’s the root of it.
I never said I was defending the current system in any way shape or form... Only that the one suggested in the particular post I was responding to just shifts the burden to the businesses, which we will end up paying for on top of the added taxes anyway.
both are bad.
not one or another game.
stop reading the goebles playbook.
And a higher potential for avoidance and a higher incentive to barter.
Unlike the “non-intrusive” filing and reporting you do now under the income tax???? Really???
The FairTax only funds SS as is required by the SS/MC separate laws. Reforming them would require change to those basic SS/MC laws, not the FairTAx bill.
It is only a tax bill.
Why attempt to intentionally distort what he said?
So where’s your magic bullet to solve this?
And a higher potential for avoidance and a higher incentive to barter.
Neither of those things is true - nor have you or anyone else ever shown them to be. If fact the many economic studies show just the opposite to be the case with the FairTax.
Lots of people who are not currently taxed for either will now be (plus the double taxation of pre-FT AT savings/investments that are liquidated and spent on taxable items/services).
It looks to me that the primary intent is to spread the tax base for those items and shield the (to be more frequent) rate setting from the elected officials.
This will have the effect of reducing pressure to truly reform the system.
As outlined numerous times over the last few days, it looks to me likely under the FT that most stores, restaurants and other businesses will become schools and gain tax exempt status.
Here ya go: http://www.freerepublic.com/focus/f-news/1960283/posts
There isn't a magic bullet.
FairTaxers, themselves, recognize the potential for tax avoidance when they say their scheme restores freedom - you get to decide when and were to pay the tax. (or maybe you're reading avoidance as evasion?)
Economics is not just numbers, its human behavior. All those economic studies (paid for by the FairTax organization) are claiming that within a given set of circumstances, human beings will behave a certain way. For example, remove tax on earnings from investments, and human beings (wanting the best deal for themselves) will invest.
The FairTax organization passes over, or rationalizes away what those same people (wanting the best deal for themselves) will do when facing high taxes at the point of sale. They contradict themselves when predicting human behavior re taxation.
Lots of people who are not currently taxed for either will now be...
How long before people who are taxed to support SS and MC but do not qualify for benefits, perceive that they are being treated unfairly?
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