H.R. 25, the FairTax act (A national retail sales tax) restricts government spending by making the government pay the sales tax too.Why do you keep saying this when you been shown it's not true. For every dollar the government pays in taxes they get that same dollar back in revenues. You are just changing the expediture/revenue scale. Where's the disincentive to keep spending?
The level of the sales tax rate is not a commentary on this form of taxation. It is a direct commentary on the level of spending by government.
Under the status quo, which you support, the vast bulk of our tax load is HIDDEN. Under the FairTax, 100% of taxation would be VISIBLE.
The divide and conquer tactics of politicians and the social engineers will come to an end under the NRST.
All Americans will be united in one interest: lowering the rate. What is the only way to lower the rate? Reduce spending.
It's simple. It's fair. It's visible.
It's the only way to go.
Don't even bother to respond to me unless it is on substance, or if you have a better positive alternative.
The critics of the FairTax have one distinctive characteristic: No positive solution of their own.
"Why do you keep saying this when you been shown it's not true. For every dollar the government pays in taxes they get that same dollar back in revenues. You are just changing the expediture/revenue scale. Where's the disincentive to keep spending?"
-- That is only technically possible at the Federal Level; all other levels of spending would be restricted. Furthermore, the Federal government would also have to pay any state and local sales taxes in the municipality their located in. In states where the state sales tax conforms to the tax base of te federal one, this is huge.
"For every dollar the government pays in taxes they get that same dollar back in revenues."
-- That is patently false. Have you ever heard of transaction/collection costs? It only may be a few pennies on the dollar under the FairTax, but that still means that (with a 5% transaction/collection cost) $1 spent = $.95 in revenues.
-- There are other reasons that federal spending will be restrained as well.