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Tax Reform Panel Picks Apart FairTax Proposal
Tax Analyists ^ | 5/12/2005

Posted on 05/12/2005 7:46:54 PM PDT by Your Nightmare

Members of the President's Advisory Panel on Federal Tax Reform on May 11 expressed concerns over the FairTax national retail sales tax, a plan that has emerged as an alternative with a major grass-roots push.

Panel chair Connie Mack, vice chair John B. Breaux, and other members worried the plan would be difficult to enforce, would be regressive, and would require a high rate in order to take in enough money to fund the government.

Breaux raised concerns that the proposed 23 percent (tax-inclusive) rate would not be sufficient to raise the revenue necessary to fund the government. The Joint Committee on Taxation estimated that it would take as much as a 57 percent (tax-exclusive) rate to be revenue-neutral. Further, Breaux said he thought exemptions that would be carved out to make the sales tax progressive would also complicate it.

Mack, who raised concerns similar to his fellow panelists', said he was "intrigued" by the plan. "But if it's such a great idea, why haven't other political entities around the world pursued it?" he asked.

Americans for Fair Taxation Executive Director Tom Wright emphasized that the plan emerged after "thorough academic research" and "thorough polling" The strong grass-roots push has resulted in some of the group's 600,000 members appearing at each of the panel's hearings and has inspired a large comment-writing campaign to the panel in support of the plan.

Sales tax advocates were among the 20 witnesses who gathered before the panel for a full day of testimony on tax reform proposals. Although the group has held several other hearings in Washington and around the country, the May 11 meeting was its first hearing on specific reform plans since Bush appointed the panel in January. The panel has been charged with identifying tax reform proposals that are progressive, encourage charitable giving and home purchases, and are revenue-neutral. The proposals are due by July 31.

Among the tax replacement and reform plans presented to the panel were the value added tax, consumption-based tax, and the flat tax, as well as proposals that would use the current income tax as the foundation.

Witnesses generally claimed that theirs was the fairest, simplest, most flexible, most transparent revenue-neutral proposal that would improve economic growth and savings while meeting the president's criteria of encouraging charitable giving and home buying. Witnesses presenting consumption-based plans praised their overhaul as taking millions of low-income taxpayers off the rolls, being easy to transition to on a worldwide basis, and including safeguards to prevent new loopholes that would result in increased complexity down the road.

Tax reform panel members, who agree the current tax system needs to be fixed, grilled witnesses without revealing whether they will ultimately endorse a consumption- or income-based tax or a different mixture of the two.


TOPICS: Business/Economy
KEYWORDS: fairtax; flimflam; scientology; snakeoil; taxes; taxreform; taxscam
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To: Final Authority
We got the votes...

Who is "we" in your post? And what votes?

221 posted on 05/16/2005 12:10:34 PM PDT by Principled
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To: Paul C. Jesup

Explain to me how I exhibited that I am a socialist? Please do so in English using proper grammar. Also use facts and historical citations in your analysis. Thanks.


222 posted on 05/16/2005 12:11:08 PM PDT by Final Authority
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To: Final Authority

_Are_ you a socialist?


223 posted on 05/16/2005 12:12:16 PM PDT by Principled
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To: Principled

People who think like me, of course. The votes by way of political contributions (free speech) to run the farttax into the ground.


224 posted on 05/16/2005 12:13:05 PM PDT by Final Authority
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To: Principled

When did you stop beating your wife or girlfriend, huh?


225 posted on 05/16/2005 12:14:09 PM PDT by Final Authority
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To: Final Authority

I can see fropm your posts that you are indeed well educated and cultured ... and ignorant of the provisions of the FairTax and the building impetus behind it to boot.

You seem to think that the existing tax system is one of the things that made this country great - IT AIN'T!!! You unfortunately missed the part of your education that taught about how the income tax came into being ... and when. It has been the biggest economic drag on our country for many years and it is going to go the way of all good things ... bank on it.

The FairTax does not "add another layer" as you so obviously feel. My Jeans are in the wash but I'd suggest you use some of those good genes of yours from your parents and find out how the FairTax provides taxpayer freedom vis-a-vis the current system that you seem to so love.


226 posted on 05/16/2005 12:15:36 PM PDT by pigdog
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To: Final Authority
People who think like you think? or people who think the same as you about taxes?

There's something mysterious about wanting to derail something without stating a reason for it. Is someone telling you what to do?

227 posted on 05/16/2005 12:16:03 PM PDT by Principled
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To: Final Authority
Explain to me how I exhibited that I am a socialist?

You are against the Fairtax/NRST, therefore you are for the status quo of the IRS and it's tyrannical bureaucracy and regulations against the working citizens of the U.S.

228 posted on 05/16/2005 12:16:29 PM PDT by Paul C. Jesup
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To: pigdog
Read the definition of Infer compared to imply. Words have meanings but only if ones intellect is compatible with the thought process.
229 posted on 05/16/2005 12:16:40 PM PDT by Final Authority
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To: Final Authority
When did you stop beating your wife or girlfriend, huh?

I try to only beat one at a time he he

230 posted on 05/16/2005 12:16:58 PM PDT by Principled
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To: Paul C. Jesup
Define socialism. What you are implying is not socialism any more than a Farttax would be. In fact, being that the farttax is calling for a BIG, that alone puts it in the slippery slope category.
231 posted on 05/16/2005 12:18:40 PM PDT by Final Authority
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To: Final Authority

Careful, there. People who "think like you" aren't either well-educated OR cultured so you may have put yourelf into the wrong cubbyhole.


232 posted on 05/16/2005 12:18:52 PM PDT by pigdog
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To: Principled

Pardon me, boyfriend.


233 posted on 05/16/2005 12:20:19 PM PDT by Final Authority
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To: Principled
25% of what?
25% more than nothing...
234 posted on 05/16/2005 12:20:32 PM PDT by Your Nightmare
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To: Final Authority

I've read both definitions long before you thought of that, and as I said I like "infer" as the better word for the situation.


235 posted on 05/16/2005 12:20:46 PM PDT by pigdog
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To: Final Authority

You've used the term "BIG" several times and I'm curious as to its meaning. Please enlighten me as I haven't sufficient education to know its meaning.


236 posted on 05/16/2005 12:25:45 PM PDT by pigdog
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To: pigdog
The way you used it is wrong and if one extrapolates that bit of illogic and wrong thinking to the farttax then all of what you said is wrong. Simply put, you do not think well.
237 posted on 05/16/2005 12:26:35 PM PDT by Final Authority
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To: Your Nightmare

25% of what?


238 posted on 05/16/2005 12:26:40 PM PDT by Principled
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To: Final Authority

I'm not your boyfriend. But I'll pardon you anyway.


239 posted on 05/16/2005 12:27:47 PM PDT by Principled
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To: pigdog
BIG (basic income guaranty) a world wide communist group proposal that has linked its future to the success of the so-called farttax. They see it as the vehicle to establish a BIG in the USA. Google it.
240 posted on 05/16/2005 12:28:46 PM PDT by Final Authority
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