Replies

I would love to see a national sales tax rather than payroll tax.

If your labor is a service, it gets taxed. A hair cut or cutting the lawn is a taxable service. All the consumer perceives is how much money must be forked out to acquire item X. If labor+"fair tax" is too much, the price will have to be reduced until it becomes "affordable". If the labor compensation is too low, nobody will bother. The tax rate will make the availability of labor and the cost of doing business a fairly volatile issue. When the tax is applied to labor (service), it is a flat income tax. I predict that every kind of labor will end up categorized as a "service". At that point, it would have been easier to simply go with a flat, non-progressive income tax. Further, things that weren't previously taxed (rental of a house or apartment) will add to the tax burden.

I would much rather see HR 25 state that NO sales tax can be collected until repeal of the 16h amendment is ratified. The government should not expend any money until the repeal process gets to 95%. My guess is that the repeal will never happen. The socialists feeding at the trough can't allow it.

All the consumer perceives is how much money must be forked out to acquire item X.

The Fair Tax will itemize the tax rate as a separate entry on the receipt so people will know exactly how much they are taxed.That transparency is a big improvement over the federal income tax since the price of all goods and services include the cost of corporate income taxes and the associate compliance . These embedded taxes are never seen by the consumer. The Fair Tax will end that deception.

If labor+"fair tax" is too much, the price will have to be reduced until it becomes "affordable". If the labor compensation is too low, nobody will bother. The tax rate will make the availability of labor and the cost of doing business a fairly volatile issue.

If the tax rate becomes too high with a consumption tax people will respond with less purchases. Less purchases will result in Congress collecting less tax. This forces Congress to keep the tax rate within reasonable if it wants to maximize the tax collection. People will have more freedom to determine how much and how often they are taxed and thereby return power to the people and away from Congress as our founding fathers intended when they wrote the Constitution. This tax concept was recognized by one founding father and first Secretary Of The Treasury, Alexander Hamilton in Federalist Paper #21, To quote:

It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, "in political arithmetic, two and two do not always make four." If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them.

When the tax is applied to labor (service), it is a flat income tax.

The individual will earn his or her wages free and clear of any tax with The Fair Tax as they will not have to report it as income. That will in turn eliminate the embedded taxes imposed at each stage of production. That reason alone makes the Fair Tax profoundly different from any income tax.

That's not a prediction. You're merely stating the obvious as all labor by definition is a service.

At that point, it would have been easier to simply go with a flat, non-progressive income tax.

A flat tax on income still mean people will not have the freedom to choose when and how often they are taxed. It will also maintain the increasingly oppressive IRS.

Further, things that weren't previously taxed (rental of a house or apartment) will add to the tax burden.

On the contrary. All items with the income tax are taxed multiple times. All the materials used to construct houses or apartments come from many businesses who pay taxes and past that cost on to their customers(lanlord/developer) in the price. They in turn pass those taxes plus their own tax onto the tenant and home buyer. Ultimately a person pays multiple taxes with every payment without knowing as is evident by your statements. The Fair Tax will only tax each one once at the time of payment.

I would much rather see HR 25 state that NO sales tax can be collected until repeal of the 16h amendment is ratified.

The purpose of concurrent passage of The Fair Tax Act and repeal of the 16th amendment is to put pressure on Congress. Your scenario would give Congress critters less reason to commit to passage of The Fair Tax and more reason to delay.

My guess is that the repeal will never happen. The socialists feeding at the trough can't allow it.

They will have less say as an increasing number of their constituents demand they support The Fair Tax and repeal the 16th Amendment concurrently as is occurring with more people supporting the Fair Tax as time passes.

At that point, it would have been easier to simply go with a flat, non-progressive income tax. Further, things that weren't previously taxed (rental of a house or apartment) will add to the tax burden.

You do realize that the income tax started as a flat tax and then progressed into a Progressive tax? We don't need an income tax, the country got along just fine for over 100 years without one. A sales tax will not add anymore to the cost of an item than income taxes do. Are you so naive you think employers don't add the cost of income taxes to their product now? What is the difference between paying 30 percent income tax or paying 30 percent sales tax? None, except that you have the choice to NOT buy something whereas income taxes are inevitable. Another difference is everyone has to pay taxes with a sales tax, an income tax can be avoided by paying under the table, as happens now with illegals and many other people.

Let's get the government out of our wallets and out of our bank accounts. Also,let's repeal the stupid laws that say we can't carry our own money around with us without being arrested for being a drug dealer and having our money confiscated. Talk about unconstitutional, what a crock. Down with the income tax, down with government being able to snoop on my bank account, down with confiscation of private property under the guise of fighting crime. Up with individual freedom.