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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: Your Nightmare

You mean 25% more than 0%?


241 posted on 05/16/2005 12:29:11 PM PDT by Principled
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To: Your Nightmare

You're the one who purposely deleted that portion of a paper that said it, you should know.


242 posted on 05/16/2005 12:30:06 PM PDT by Principled
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To: Principled
You mean 25% more than 0%?
Right. Nothing. You do realize that when you have 0% of something, you have nothing. So what is 25% more than nothing?
243 posted on 05/16/2005 12:31:12 PM PDT by Your Nightmare
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To: Final Authority
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.
It's pretty remarkable to see people who call themselves conservatives support such a plan, isn't it? The whole while they are complaining about people who don't pay taxes and the plan they are blindly promoting would make the situation much worse. It's almost funny.

Can you imagine the "family consumption allowance" after 20-30 years of political manipulation?
244 posted on 05/16/2005 12:34:30 PM PDT by Your Nightmare
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To: Your Nightmare
Just go back to the paper from which you selectively quoted. You know, the one that said that the fair tax would have to be 25% more than a situation with NO taxes. Except you left off the part about NO taxes - and said the rate would be 23 plus the 25 the paper "said"....trying to make FReepers think there was a reputable source indicating the rate would have to be 48%.

You were caught.

245 posted on 05/16/2005 12:36:59 PM PDT by Principled
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To: Final Authority

... and I thought you were bloviating about how educated and cultured you were just a couple of posts ago. 'Fraid you need a better dictionary and I need to revisit the thought about you being educated and/or cultured.

The word "infer" was quite appropriate in the usage I offered.

Since you've never read the FairTax bill, you're hardly a decent judge of what it does or doen not contain.

Read the bill.


246 posted on 05/16/2005 12:58:48 PM PDT by pigdog
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To: Final Authority

Actually, I already had and thought that might be what you meant but didn't want to INFER that.

That's what one of the founders, Block, of UC Davis staff (one of the more leftie UC hotbeds) is promoting but it is guaranteed income effort which has nothing to do with the FairTax. Here's a description so others won't need to bother:

"The basic income guarantee (BIG) is a government insured guarantee that no citizen's income will fall below some minimal level for any reason. All citizens would receive a BIG without means test or work requirement. BIG is an efficient and effective solution to poverty that preserves individual autonomy and work incentives while simplifying government social policy. Some researchers estimate that a small BIG, sufficient to cut the poverty rate in half could be financed without an increase in taxes by redirecting funds from spending programs and tax deductions aimed at maintaining incomes. "

And notice that they push for an increase in taxes (income taxes; the kind we now have). The FairTax does nothing of the sort nor does it "redirect funds from spending programs" and is revenue neutral to boot.

If you keep this up you'll be showing up as "dumb as a post". Please read the bill so you have a better knowledge of it.


247 posted on 05/16/2005 1:10:34 PM PDT by pigdog
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To: Principled

He sounds like Bruce Bartlett or David Gale with that sort of stunting.


248 posted on 05/16/2005 1:13:22 PM PDT by pigdog
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To: Your Nightmare

Can you imaging the existing tax sysem (or even the wunnerful, undefined Nightmare Tax) after 20 30 more years of political manipulation ... which is much easier under those tax systems than under the FairTax which has only a single visible-to-all rate?


249 posted on 05/16/2005 1:15:57 PM PDT by pigdog
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To: pigdog

You keep refereing to a "bill" that is the farttax. Until it is a law it is just a dream. BTW, no serious effort to establish a communist BIG in this nation would go about it by advocating a new tax, except of course the Farttaxers.


250 posted on 05/16/2005 1:51:42 PM PDT by Final Authority
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To: pigdog
He sounds like Bruce Bartlett or David Gale with that sort of stunting.
Who's David Gale?
251 posted on 05/16/2005 1:51:44 PM PDT by Your Nightmare
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To: pigdog

You said I infered. I can't infer when I write to you, but if you wrote, I infered from what you seemed to imply, then your useage would be correct.


252 posted on 05/16/2005 1:53:55 PM PDT by Final Authority
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To: pigdog
You keep saying, read the bill. I read the bill back in 2000 when the Chief Negotiator was the "useful idiot" championing the "bill". I guess he is dead, and it is too bad, after his house blew up.

Have you ever read the Communist Manifesto? Makes a lot of sense to the uniformed, the weak, the useless, the academic elite, and those who have yet to learn from history. Of course the bill makes sense but for many so does the Manifesto.
253 posted on 05/16/2005 2:03:28 PM PDT by Final Authority
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To: Final Authority

Tell it to Shakespeare, pal ---

"... this doth infer the zeal I had to see him --" Shakespeare

OR - take it up with Merriam Webster's dictionary:

"...another survey... infers that two-thirds of all present computer installations are not paying for themselves" -- H. R. Chellman.

You are clearly full of beans.

IF you indeed read the bill in 2000 it is quite apparent you inferred the wrong corpus of information from it. I suggest you read it again with more of your cultured education so you know more about it.

CHIEF negotiator's home did not "blow up" as you put it - one more thing you're wrong about. Your track record is building and building.



254 posted on 05/16/2005 2:19:37 PM PDT by pigdog
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To: Your Nightmare

A guy who thinks a lot like you, Bruce.


255 posted on 05/16/2005 2:21:11 PM PDT by pigdog
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To: pigdog

I thought it caught on fire and it didn't give him much of a chance. Is that understanding correct?


256 posted on 05/16/2005 2:29:39 PM PDT by Final Authority
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To: Final Authority

Maybe I have it wrong and you can clear this up for all of us. I sort of inferred that a bill was a pre cursor to a law and you didn't get the latter without the former. What is it they call that first thing that results in a law???

Perhaps you missed that the BIG is an attempt to RAISE income taxes. And so far as I know it is not even a bill before Congress let alone a law.


257 posted on 05/16/2005 2:29:59 PM PDT by pigdog
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To: Final Authority

Why don't you Google it and see ...


258 posted on 05/16/2005 2:31:17 PM PDT by pigdog
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To: pigdog
Read this, it comes right off of Google.

USAGE NOTE Infer is sometimes confused with imply, but the distinction is a useful one. When we say that a speaker or sentence implies something, we mean that it is conveyed or suggested without being stated outright: When the mayor said that she would not rule out a business tax increase, she implied (not inferred) that some taxes might be raised. Inference, on the other hand, is the activity performed by a reader or interpreter in drawing conclusions that are not explicit in what is said: When the mayor said that she would not rule out a tax increase, we inferred that she had been consulting with some new financial advisers, since her old advisers were in favor of tax reductions.

First time I ever copied and pasted on these threads. I would never make with the useful idiots.

Like I said, I did not infer, if you believed I was implying something then you may infer.
259 posted on 05/16/2005 2:33:56 PM PDT by Final Authority
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To: pigdog

On 257 you say you are inferring. You can't if you are implying that a bill was a precursor. I inferred that all along but a bill is not a law and this bill will never report out as it was read in.


260 posted on 05/16/2005 2:37:16 PM PDT by Final Authority
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