OK ... STAND BY FOR ME TO GO BALLISTIC ABOUT FAIRTAX OPPONENTS

NEALZ NUZE ^ | April 10, 2008 | NEAL BOORTZ

[Turret Gunner A20]

OK ... STAND BY FOR ME TO GO BALLISTIC ABOUT FAIRTAX OPPONENTS

Twenty two million dollars. For those of you who do better with numbers than letters, that would be $22,000,000.00. That's the amount of money spent to come up with the original FairTax plan. This money was spent on research by economists and other financial groups; on focus groups across the country; and on comprehensive studies of alternative ways of raising revenue for the operation of government and the consequences of those various methods.

Twenty-two million bucks, and day after day we have to suffer the uninformed and frankly unintelligent slings and arrows launched by people who left their rational reasoning skills far behind as they started their life's journey, or who are so deeply steeped in their petty jealousies and wealth envy, nurtured, no doubt, by their own feelings of personal failure, that they couldn't form a cohesive and rational thought about the FairTax if their very lives depended on it.

I present for you here two letters to the editor that appeared in the Atlanta Journal-Constitution on Wednesday, April 9th. Following each letter I'll deliver the appropriate verbal thrashing and try to set the record straight.

Want a nation of masters and serfs?
Regarding the letter "Learn facts about FairTax, please" (@issue, April 3): While studying the FairTax, I discovered that its core is a consummate cut of any obligatory federal taxes. That leaves the wealthiest in our country with no federal taxes to compensate the U.S. for the gifts showered upon them or to keep the wealth gap at a sane level. FairTax supporters are looking toward a state of chaos if they succeed. Our present plutocracy will become much worse, a country of masters and serfs.

WILLIAM L. FELL
Athens

Well my, my my. What do we have here? Does it look to you like Mr. Fell (a very prolific letter writer, by the way) may be suffering a bit from wealth envy? How do you like his assertion that the wealthy in this country (however he might define that) had "gifts showered upon them." This is part of the tired old leftist, anti-capitalist saw that the wealthy in our country did no real work to earn their wealth, it was just handed them; or "showered upon them," as Mr. Fell says, or, as Dick Gephardt liked to say, they "won life's lottery." In any event, these leftists are loathe to admit that the wealthy actually worked their tails off for the wealth they enjoyed. Those destined for wealth were working 60 and 80 hour weeks while those destined to remain in the middle class were looking at the clock just waiting for quitting time to come around.

What upsets Mr. Fell so much about the wealthy? Well .. he has two choices here. First, he can work hard, make correct choices, delay gratification and become wealthy. Second .. he can make poor choices, work his 40 hours a week and go home and completely fail to plan for his financial future .. and remain right where he is right now. But .. .if he chooses the latter, he certainly won't be willing to take the blame for his plebian economic status. He'll give himself a pass by trying to convince himself, and others, that those nasty rich people just had wealth "showered upon them." Other than the fact that they got a shower of riches while he got the proverbial golden shower ... he's just as good as they are.

Yeah, right.

Fell thinks that under the FairTax the "wealthiest in our country" will pay no taxes to the federal government. Let's give him a break. There's always the possibility he was educated in government schools. Besides, his left-leaning outlook has poisoned him to the concept of achievement.

First of all, what Mr. Fell may not realize is that the "wealthiest in our country" are quite possibly not paying income taxes under the present system. And why not? Because they're already wealthy. They don't need to work any more. They let their investments work for them. Let's take the case of Warren Buffet. Several months ago Buffet, with great fanfare, announced to the world that his secretary paid a higher tax rate than he does. Well, duh. His secretary pays income taxes. Warren Buffet pays capital gains taxes. Capital gains taxes are maxed out right now at 15%, and that would be lower than the rate his secretary pays on her salary. Funny how the leftist media didn't bother to point out that little fact when they were touting Buffets thoughts on comparative tax rates.

So what happens to these evil rich people --- the ones who had these gifts "showered upon them" after passage of the FairTax. Well, right now if Mr. Gotrocks takes $4 million out of a savings account, or if he sells something he doesn't need anymore, and uses that $4 million to buy himself a fancy new yacht for his Naples, Florida waterfront home ... he pays nothing to the federal government. He may be socked with a hefty state sales tax ... but for the feds, nunca.

After the FairTax, however, there would be a 23% national retail sales tax embedded into the price of that yacht. My government school math tells me that Mr. Gotrocks would actually be paying about $920,000 to the feds. This, to the brilliant and envious Mr. Fell, constitutes "no federal taxes."

The FairTax is the only tax reform plan out there that COMPLETELY untaxes the poor at the federal level. This isn't enough for Mr. Fell .. he has to make sure that the rich get soaked. After all ... it's not as if they worked for that money, right Mr. Fell?

Now .. onward and upward to the second letter:

Older workers would suffer

Although I didn't write the original letter "FairTax wouldn't be fair to many retirees" (@issue, March 29), I disagree with the rebuttal "Learn facts about FairTax, please": The main problem with a substitute "fair" sales tax is not that it may discriminate against those with a low income, notwithstanding complicated formulas to compensate them that the rebuttal writer claims will be in place, but that older workers, and particularly retirees, have already paid hefty federal and state income taxes on their savings. Their investments in Roth IRAs, CDs and similar savings would be heavily taxed again when they cash them for everyday living.

ROBERT KRIETE
Lawrenceville

We'll be a little more gentle with Mr. Kriete because he seems to be expressing an earnest concern about the FairTax, a concern not based on wealth envy as was Mr. Fell's.

Kriete is concerned that people who have already paid federal taxes on the money they sacked away in their savings accounts, IRAs and CDs will have to pay a tax again when they take that money out and spend it during their golden years.

I've encountered that particular question dozens of times, and it is fully covered in "FairTax, The Truth: Answering the Critics." The point, Mr. Kriete, is that when these people take that money out of their savings or retirement accounts and spend it at the retail level they're going to pay taxes one way or the other. Under the present Income tax scheme they're going to pay the (average) 22% embedded tax that exists in every product or service purchased at the retail level. With the FairTax comes the end of all business and corporate income and payroll taxes and the end of this 22% tax embedded in our goods and services. Then along comes the FairTax to replace the embedded tax. So, Mr. Kriete, you see that a $700 riding lawn mower or a $16,000 Harley is going to cost pretty much the same after the FairTax as before. In one case you're paying the embedded taxes brought on by today's tax structure, in the other case you're paying the FairTax. Six of one, half a dozen of the other.

Now, Mr. Kreite, before you go .. .here's another point to consider. Not only will retirees be paying essentially the same for whatever they buy after the FairTax as before, the FairTax will also bring them their monthly prebate checks. Let's say that your retirement household numbers two. Under the FairTax you will receive a check or credit to some bank account every month equal to the FairTax you will be paying that month to purchase the basic necessities of life. Nobody --- not you, not the evil rich guy down the street, not Mr. Fell, not The Talkmaster .. .nobody who is a legal resident of this country will have to pay the FairTax on the basic necessities of life. That prebate check to you, Mr. Kreite, will be several hundred dollars a month. You'll pay no taxes on investment income. You'll pay no taxes on the interest you earn on your savings accounts. There will be no tax on your estate when you die. You will pay no capital gains taxes if you sell some stock to take a nice vacation. You will only pay the FairTax. That's it as far as federal taxes go .... PLUS ... you get that prebate check every month and the price of all the stuff you want to buy remains essentially the same. Do you still think it is such a bad deal? There's hope for you, Mr. Kreite. For Mr. Fell ... not so much.

[Turret Gunner A20]

Typo Corrections:

If insist on showing your ignorance, at least get your facts straight. For one thing, I didn't spend a dime developing the FairTax Bill.

And, how about proving what some of the drivel you puke, for once???

[Nebr FAL owner]

On;y until somebody decides that getting a larger portion of the market share by dropping the prices to reflect the true costs .

There is historical precedent for this back in the early 80’s with the airline industry. Also the Fairtax will not go into effect until the federal taxes other than the Fairtax are rescinded.

This is gonna be a very public ie everybody & his booger eatin half brother is gonna know this & when the various folks try to take advantage they can & will say F&CK YOU & take their business somewhere else.

[Nebr FAL owner]

What spending 22 million proves is that they actually gave the tax system a bit of thought as opposed to the system we have now . Is it a perfect system ? Name/describe the perfect system to take your money at the point of a gun(what do you think the IRS exists)& give it to the liars,thieves,child pimps that are the Congress of the United States.

[Turret Gunner A20]

Now that you have puked up everything you think you know, you may go ask mommy for a warm bobba of milk, a change of crappy diaper and go take your nap.

[Turret Gunner A20]

Now that you have puked up everything you think you know, you may go ask mommy for a warm bobba of milk, a change of crappy diaper and go take your nap.

[Nebr FAL owner]

Agreed sadly the fairtax won't come into being until we have economic crisis that will leave this country looking like the Weimar Republic.

[Nebr FAL owner]

Then learn about it ! Then make informed comments. Neal is annoyed all to hell by the folks who are to lazy/ignorant to do even a little research on the subject running on at the mouth about how horrible it would be when they know zero about just what they are talking about.

[Nebr FAL owner]

Clintonian/fascist tactics were the hell did you get that idea ? The fair tax is not based on govt control of industry through threats of asset forfeiture or imprisonment of the owners if they don't support the party/current politician,THAT is the way the Clinton& the fascists worked.

[higgmeister]

Boortz Bump!

[Cyber Liberty]

Where do we send your $22M?

[Cyber Liberty]

I agree with Neal, the letters are probably wrong and malinformed (especially the class-envy first one), but there are intelligent reasons to oppose this “Fair Tax” that’s been run around the pea-patch a few times.

[higgmeister]

So it doesn’t matter if someone is for or against the plan based on its merits? It should be supported due to its research costs?

No, it should be simply noted that it was studied and researched far beyond the ability of a keyboard-commando economist's meager ability.

[mngran2]

Here’s a lesson in Politics 101 for you: because of this writers offensive column and your mean post, I have decided to be against the fair tax from now on and to tell my friends to be the same. I was neutral about it and didn’t care one way or the other until now, but things that are advocated by bullies turn me off. I’m now a fair tax opponent. Thank you for saving me the trouble of having to investigate it further.

[higgmeister]

Here’s a lesson in Politics 101 for you: because of this writers offensive column and your mean post, I have decided to be against the fair tax from now on and to tell my friends to be the same.

Just so you know, Neal Boortz is the very popular AM Radio host on the Flagship Station of the South WSB-AM750.   He is ranked at number six on the most listened to Talk Radio Personalities with 3.75 million listeners per week.   Some of his self-given nicknames are, “The Talkmaster”, “The Mouth of the South”, “America's Rude Awakening”, and the “High Priest of the Church of the Painful Truth”.   As a person that hosts a radio call in show, Boortz is used to left-wing callers that attempt to lambaste him on many issues.   His FairTax book, co-written with Congressman John Linder, was number one on the NYT best seller list for seven weeks just after its debut.   His tone in this excerpt from his program notes is harsh in response to the inanities and vitriol that he endures concerning the FairTax. This is not a column as such. The notes are written every morning to remind him of what he intends to talk about on the air and let listeners see them in advance, if they so choose.

[higgmeister]

Boortz Bump!

[Man50D]

Fair Tax ping!

[lewislynn]

The base for the nrst is larger than the base for the payroll tax and income tax. A lower rate with a larger base can generate the same revenues. No lie there - you just don't get the whole thing about consumption base being larger.

Then what you're saying is the Fairtax is a tax increase.

I don't think you know what a tax base is. The Fairtax replaces income tax dollar for dollar, the base is the same...income.

If the Fairtax rate is 23% how can the government collect more than that by expanding the base?...The most I could pay is 23% of my gross.

Only the manner of collection is different...

[Man50D]

although from some things I’ve read, it sounds like it would have its own batch of “exceptions” and other intricacies, and I don’t want that.

I don't know what you've read but The Fair Tax removes "exceptions" by eliminating all the loopholes pushed by lobbyists that distort the economy. Everyone pays the same one rate on all items at the register. The prebate will pay back in advance the tax on necessities up to the poverty level.

So? What does that prove?

Fair Tax naysayers have tried in the past to give the impression very little thought went into creating The Fair Tax.

Besides, 22 mil is a relative drop in the bucket. To put it into perspective, it’s four days worth of gasoline for the troops in Iraq.

You're comparing apples to oranges. The accurate and reasonable comparison is how much money was spent by private citizens on research of other tax alternatives compared to The Fair Tax. I suspect it's far less.

[Man50D]

The biggest problem with the Fair Tax is that the politicians and bureaucrats are too heavily invested in the current power structure to allow it.

The biggest problem is too many people have easily fallen for the misconception perpetrated by politicians that they have the power. That couldn't be further from the truth. The people have the power as evident by their outrage twice this past summer when Congress critters tried to pass amnesty for illegal aliens. Congress critters wilted under the pressure and the legislation did not pass.

[higgmeister]

I just checked and his listeners have gone up to 4.25 million but still at number six.