The Fair Tax: Starve the Federal Government

DBKP ^ | April 18, 2008 | mondoreb

[mondoreb]

Red Planet Cartoons commemorated the annual feeding of the federal Leviathan: April 15th, Tax Day. The above cartoon kicks off an informative post about The Fair Tax.

“[P]assing the FairTax would constitute the biggest transfer of power from government to the people in the history of this republic.” -–from the book FairTax: The Truth: Answering the Critics by congressman John Linder and Neal Boortz, p.60.

For those who need information on the Fair Tax idea, RPC presents the following, easy-to-digest table.

[mondoreb]

April 15th has come and gone, but the results of it are everywhere around us--and they are not a pretty picture. The only way to shrink the federal government is to starve it of tax revenues.

[lewislynn]

April 15th has come and gone, but the results of it are everywhere around us--and they are not a pretty picture. The only way to shrink the federal government is to starve it of tax revenues.

What kind of fool believes the government would pass a bill to starve itself? In spite of the misinformation and idocy in Boortz book(s)The Fairtax is admitted to be revenue neutral...

Youll be the only one to starve after having to pay an additional 30% tax on your already escalating prices of groceries.

[Filo]

The only way to shrink the federal government is to starve it of tax revenues.

And the "revenue neutral" Fair Tax does nothing of the sort.

[Always Right]

“[P]assing the FairTax would constitute the biggest transfer of power from government to the people in the history of this republic.” -–from the book FairTax: The Truth: Answering the Critics by congressman John Linder and Neal Boortz, p.60.

Actually that is a$$-backwards. The proposed FairTax plans to collect an additional $500-600 Billion in taxes to pay for the prebates (which would surpass SS as the biggest entitlement program). Of course for now it would be distributed to everyone on an equal basis, but that would only last a year or so before the Democrats come up with a fairer way to distribute the prebates. Once all this additional money is sent to the government, it actually empowers the government more, not less.

[Titus Quinctius Cincinnatus]

I guess you don’t understand what the term “revenue neutral” means, do you?

[Titus Quinctius Cincinnatus]

My question is, why has Neal Boortz, supposedly a libertarian, signed on with this “Fair Tax” boondoggle?

[mondoreb]

To those “revenue neutral” posters: Those are certainly valid points.

However, all taxes are not created equal when it comes to the way investment money moves. While I do not pretend to be an expert on the Fair Tax, I do think it’s an idea that needs to be discussed.

Whatever your viewpoint, I think everyone can agree that the present system needs fixed badly.

[Always Right]

My question is, why has Neal Boortz, supposedly a libertarian, signed on with this “Fair Tax” boondoggle?

If a flat 10% sales tax could collect enough revenue without all the prebate crap, it would probably be a good idea. Right now the more serious problem is on the spending side. I might change my view if Obama gets in and implements an effective 60% tax rate like he is proposing if you add up all the stuff he is doing.

[Cheburashka]

Knowing politicians greed for more money to lavish on their constituents to bribe their votes, after the Fair(y) Tax is implemented you can expect at least a 2% (at the start, there will be larger annual increases down the road) increase per year in the rate.

“Oh, it's only 2%, you'll hardly notice, and look at all the good things we'll spend the money on.”

Within 25 years I predict the tax rate will be over 100%.

There is one way to prevent that - a Constitutional Amendment that caps the rate at 30%, and you need a regular three fourths of the states approval to amend the Constitution and raise the rate.

Give me a Constitutional cap, and I could start to consider a National Sales Tax. Without that guarantee, forget it.

[camle]

the so-called ‘fair tax’ will neither starve the federal government, nor result in any transfer of power from the givernment to the people.

There is no way the politicians will eliminate the income tax and replace it with the sales tax. they’ll do both. like most states who enacted income taxes to replace their sales taxes never eliminated their sales taxes.

In reality it will enable MORE taxation, and LESS freedom.

the ‘fair tax’ movement is more about hating the IRS (and those who disagree with them) than any realism or desire for real change.

[lewislynn]

Within 25 years I predict the tax rate will be over 100%.

Using Fairtax logic 100% sales tax would be a 50% Fairtax rate.

[lewislynn]

The only way to shrink the federal government is to starve it of tax revenues.

However, all taxes are not created equal when it comes to the way investment money moves.

The face value of any assets or investments would lose 23% of their value on day one of the Fairtax. How does that starve the government?

While I do not pretend to be an expert on the Fair Tax, I do think it’s an idea that needs to be discussed.

Some of us have been discussing it here for over 9 yrs. Only you are new to the discussion here.

[lucysmom]

Whatever your viewpoint, I think everyone can agree that the present system needs fixed badly.

"The real issue is total spending by government, not tax reform." Ron Paul