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To: undeniable logic

"2. Savings - Anyone with semi-substantial savings has already paid a high income tax on their earnings before the money was saved. Switching to a NRST would put these savings in an identical category to new untaxed earnings, and the savings will be taxed at the rate reflected by the new tax system. This is a huge double tax."

Two thoughts:
(1) Your father and others are already paying double taxes because of the way that taxes cascade within our current tax system into the consumer pricing model. To the extent that he would be purchasing US produced consumer products, he would be paying about what he does now for that consumption after tax. The major difference is that the taxes that he would be paying would be much more visible. FairTax supporters consider that a benefit.

(2) An economist told Congressman Linder, the FairTax's champion in the House for several years "I don't know what the DJI will be on the day the FairTax is in effect, but I am certain that it will have doubled within 24 months after that". Those with substantial savings would be the major beneficiaries of this.


256 posted on 08/01/2004 8:21:15 PM PDT by phil_will1
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To: phil_will1
I agree (and my dad does as well) that there is an enormous benefit obtained by ensuring that taxes are visible. We both also agree that the current system also includes double taxation. We also agree that the NRST would be a long term benefit to our economy. All that being said, the sales taxes he would pay post switch are higher than the hidden taxes he pays now.

An argument may very well be that certain people, like him, may suffer through a little more taxes through a switch - there is no question that this is true for his case - but it is worth it for the long run, and this argument may very well be correct, BUT in his mind, he has already paid a lot for the good of this country, with most of his previous income taxed at the highest rate. Now, he would be asked to pony up again for the good of the country.

Let me say this - I know that I and most people will benefit greatly by switching, and I want to do everything possible to help move to the NRST, but we shouldn't be ignorant of some of the problems, especially if these problems bring substantial resistance to a change in the tax system.

298 posted on 08/01/2004 8:48:58 PM PDT by undeniable logic
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