FairTax: Double Taxation, An Admission

Townhall ^ | January 23, 2008 | By Hank Adler

[xcamel]

Well Well.. we were right all along. Go Figure.

[xcamel]

Finally a little more truth ping

[tiger-one]

There is no tax which is fair. But I believe the Flat Tax is the fairest.

[Adder]

Uh...scuzie....

Those folks are paying the embedded taxes when they spend their money now “tax free”.

That won’t change. The tax just becomes naked. Its no more “double taxation” than it is now.

[camle]

wait for it - the personal attacks, name calling, and general Clintonian attacks comeing from the proponents.

[dawn53]

I’m not a Fair Tax proponent, and agree with his article for the most part. But he is wrong in the case of some types of retirement savings (401K, etc.)...these plans enjoy pre-tax status and in the case of spending 401K or IRA retirement dollars, they have not already been taxed.

[xcamel]

Uh.. discredited embedded taxation.. try < 5% regardless of what you’ve been told

[Man50D]

It is axiomatic that if enacted, those individuals who have saved money during their lives would be faced with double taxation. (Under the Fairtax, someone who earned $1000 and paid income taxes of say, $250, would find his remaining $750 subject to a 30% sales tax on all retail purchases.)

Another piece of deception by the Fair Tax naysayers. The income tax imposes multiple taxes on individuals through hidden corporate income taxes and their associated compliance costs on every item by taxing each stage of production and then taxing their income.

The Fair Tax will eliminate the multiple taxation by abolishing corporate income taxes. Goods and services will only be taxed once. It will also abolish taxes on investments and savings including Roth IRA's. Fair tax ping!

[Proud_texan]

"Another piece of deception by the Fair Tax naysayers."

It was my understanding that the Fair Tax would return the same amount to the government as the current tax system.

If that's the case how can the total tax burden be decreased?

Or is the total tax collected by the government decreased? If that's the case explain how this will put government on a much needed diet?

What provisions exist to ensure that the tax rate won't be increased? Or that the pre-bate level won't be increased?

[RangerM]

[xcamel]

No one believes your embedded taxation BS anymore, as it has been disproved time and time again.

[RangerM]

[RangerM]

[RangerM]

[RangerM]

Got the point yet?

[meyer]

This is why I prefer a simple, low flat income tax. Low rate, no exceptions, no deductions, no credits. Everybody pays the same rate.

[taxcontrol]

ANY tax structure (Fair Tax / Flat tax / Income tax ... are all simply tax structures) that is implemented by Congress can be later manipulated by Congress to achieve the societies agenda of wealth redistribution.

REGARDLESS of the tax structure, the conversation that is needed in today’s society is limiting the amount of tax collected from a single individual. That of course would require a Constitutional amendment to be enforceable.

[ReignOfError]

The article raises a valid point, and nut just about retirees — anyone who has after-tax savings will pay tax on that money again when they spend it. It’s a drawback for the Fair Tax, no doubt; but you can’t have a major change, even a change for the better, without a transition.

This is the biggest negative for the Fair Tax. I’m not as starry-eyed as some Fair Tax proponents, but I still think the positives outweigh the negatives.

[xcamel]

Just a little more from "Blinder and Loortz"....

[xcamel]

“Any asset held by a retiree that is to be liquidated for income in retirement will be subject to an additional 30% tax” —