To: Bitsy
But, I wonder if the fair tax could start at say 10% and the corrupt and greedy government will vote to up it until its 50% - Who can trust the government anymore?
The Fair Tax will prevent Congress critters from raising the rate too high for two reasons.
1. The Fair Tax is transparent by showing the rate as a separate entry on the receipt. People will know immediately if Congress has raised the rate as opposed to the convoluted income tax code.
2. Tying tax collection to consumption will restore power to the people by giving them the freedom to choose how much and how often they are taxed. Raising the rate too high will result in people reducing their purchases. Fewer purchases will lessen the amount of tax collected forcing Congress to once again lower the rate. Congress can only maximize tax collection by keeping the tax rate within a reasonable boundary. This principle was brought forth by founding father and First Secretary Of The Treasury Alexander Hamilton in his Federalist Paper #21.
23 posted on
03/25/2009 12:26:10 PM PDT by
Man50D
(Fair Tax, you earn it, you keep it!)
To: Man50D
Your facts are correct, your ideal is absurd.
26 posted on
03/25/2009 12:31:08 PM PDT by
patton
(If Hawai'i seccedes, is Barack Obama still an illegal alien?)
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