[camle]

if you think for one minute that congress is gonna enact this sales tax and abolish the income tax, you are sadly naive. a flat tax that includes all Americans is more fair, less complicated, and cheaper than this monstrosity.

[E. Pluribus Unum]

Even though that might not sound too pleasing, what makes the fair tax so great is that it abolishes all other federal taxes.

Except for the ones that it doesn't and the ones that they add later.

[iowamark]

Adding on the state and local sales taxes would make the effective sales tax somewhere between 30 and 40 percent.

There would be huge tax evasion, bartering, underground sales, etc.

[Pecos]

Nice Theory. It will never happen - the tax industry, and the 47% of the population that doesn’t pay taxes will ensure it is DOA.

My personal objection to it is that the voters of this country aren’t smart enough to repeal the 16th Amendment. Otherwise, we will see a sales tax on top of income tax.

[EyeGuy]

Much better, but far from perfect.

I’m not sure what one’s consumption level has to do with his requirment for supporting government overhead.

Still, a big positive step away from the tangled, politically-loaded, corrupt mess we are saddled with currently.

[Jacquerie]

In the 19th Century, US went from a largely subsistence agricultural economy to a manufacturing powerhouse.

Our government back then lived off excise taxes and imposts.

Prosperity will not return as long as an unrestrained income tax exists.

[Bigun]

There is another FAR more compelling reason to support the FairTax!

F R E E D O M ! ! !

The communist inspired, class warfare inducing, income tax is unworthy of a people that would call themselves free!

[hellbender]

Herman Cain has taken a stand. Every Republican Presidential candidate should be required to present his/her policy on tax reform. Anyone who will not pursue a radical change, destroying the IRS and ending use of the tax code to redistribute wealth and coerce citizens, should be eliminated from contention.

[CMAC51]

These points miss the single greatest benefit of the fair tax. Under our current system approxomately 20% of the final sale product of a good or service is the embedded tax burden of the people and businesses that produced it. However, when a product is imported and sold, that 20% goes back to the originating country. Foreign suppliers have a built in 20% price advantage over domestic suppliers. Under the Fair tax, that 20% would be captured at sale and retained in the US.

The US trade balance is roughly $600 Billion per year. The Fair tax would increase tax revenue to the US treasurey by over $100 Billion without increasing the US citizens tax bill one cent.

[DH]

So, you think a 28% sales tax is OK? You think it’s going to do away with our income tax and other taxes we pay to the Federal Government?

I think you have been lead astray by the “smoke and mirrors” placed before you. Stop and think...how about the horrendous Socical Security tax at 8.4% and the medicare tax of 2.9% too? You have to remember that the employers matches the tax on your behalf and the system is designed so that you have no idea that they are. I know, I’m an employer. So if you hear the lie that your Social Security tax is only 4.2% and your medicare is only 1.45%, you have been fooled. It is a full 12.6% based upon your GROSS UNADJUSTED EARNED INCOME!

Now add the wonderful 28% sales tax to the even more ominous and wonderful Social Security taxes and you have a tax rate of 40.6% of your income. THAT’S JUST WONDERFUL! A note to employees: The money your employers hides from you to pay the Social Security taxes is YOURS! Not his! You simply don’t see it due to the “smoke and mirrors” placed before you by the politicians of past.

Until we develop a tax system in which EVERYONE (and I mean EVERYONE) pays the same rate of tax, regardless to income or financial situation...with NO EXEMPTIONS what-so-ever, AND do away with the Social Security taxes, we will never have a workable and fair tax system.

What they don’t want you to know is that a sales tax rate of an estimated 15% would be enough to pay all governmental costs if EVERYONE PAID THEIR TAX AT THE SAME RATE-———Everyone!

[RoadTest]

Wouldn’t a 23% tax on purchases bite people harder the farther down the economic strata they reside? Seems to me it would be a pittance for the affluent but a big obstacle for people struggling to make ends meet.

It should not applied to food and drugs.

[all the best]

Wow! Cool! Devising a more efficient way to take our money and support/perpetuate the federal monster that is destroying our future and our way of life. Will conservatives never end their schemes to create a better way to rob us? Heaven help us. How about cutting the federal government down to its constitutional size then it really won’t matter how we collect the minimal taxes.

[cc2k]

Wow!!! What a mental giant wrote that blog posting.

He starts out: "I created a list of 4 reasons why you should support the Fair Tax." Then he proceeds with: "1. Taxed At The Point Of Consumption … 2. Cash Paid Occupations Won't Be Neglected … 3. No More IRS … 4. Monthly Prebate System … 5. The Fair Tax Is Revenue Neutral."

Somewhere in there, there might be one good reason to support the FairTax. I doubt there are 4. And he tried for 5 after claiming 4.

Specific rebuttals:

1. The problem we have today isn't that we're taxed the wrong way. The problem is that we are taxed excessively. Actually, the biggest problem facing Congress today is too much spending. Changing the method of taxation doesn't reduce the tax burden, nor does it reduce spending.
2. The author obviously hasn't thought this through. Does he believe that purchasers of illegal drugs and services from prostitutes, who currently don't file 1099's for the money they spend on these purchase from individuals, will begin to insist that their hookers and drug sources provide proper receipts, in compliance with Section 509 of the FairTax Act. And obviously, prostitutes and drug dealers who currently don't file yearly or quarterly income tax paperwork for their earnings will be excited to file the proper monthly reports with their state to properly remit the fair tax on their taxable sales. I live in the real world, where all black market transactions go untaxed by all taxation systems. The FairTax will never change that reality.
3. Since the FairTax bill doesn't start with the repeal of the 16th amendment, it just promises that some future Congress will allow the FairTax to sunset if that amendment isn't repealed, the IRS won't be gone for long. A simple majority vote from both houses of congress plus a signature from a president will bring back the good old IRS, along with the progressive income tax system. Count on that.
4. I believe that having anyone expecting a monthly check from the government for no particular reason is a very bad idea. Having everyone expecting a monthly prebate check from the government is an even worse idea. There will be "means testing" and various other social meddling inserted into this process, and it will be a perfect way for progressives to pay off their constituencies from the public treasury. This will become orders of magnitude worse than the current "refundable tax credit" system.
5. Since we are taxed excessively now, "Revenue neutral" just means that we will continue to be taxed excessively in the future. Also, since, theoretically everything the government buys will be reduced in price (due to there being no more "embedded taxes" and "compliance costs"), a government which collects the same revenue will be enabled to be something like 30% larger if the budgets aren't cut.

Having said all that, a national sales tax is inevitable. It doesn't happen today because conservatives don't like it because it's a nearly limitless supply of funds to enlarge the government, and liberals don't like it because it's regressive and taxes the poor more than the rich. When conservatives figure out that it's regressive, and when liberals figure out it's a nearly limitless supply of cash for their programs, a national sales tax of some kind (VAT or consumption tax) will be a done deal. That might happen with the "SuperCommittee," or sometime soon.

[SES1066]

BTT for later read

[lewislynn]

For those who don't know what the Fair Tax is, it is essentially a national sales tax of 23%.

Hate to be the one to tell you Bryan but you're being lied to.

Actually Bryan the sales tax would have to be 30%.

The 23% rate is what the business collecting the tax pays. IOW Bryan, the business makes a $100 sale, charges you 30% tax, making the "gross payment" $130.00

The business would be required by law to remit "23% of the gross payments" to the greedy Nazi tax collectors...Sooo, 23% of $130.00 is $30.00 making the net to his/her business $100.00

See how easy it is to be misinformed and lied to when it comes to government and so called "fairtaxes" Bryan?

[mo]

In the absence of substantial tax and regulatory reform..we’re done for. This is one arm of the solution.

[PGalt]

Do you want to be very low-taxed, prosperous, productive citizens in a country that acts as a beacon for individual liberty?

DEFUND socialist collectives, foreign and domestic.