How to Shut Down the IRS(With The Fair Tax)

newsblaze.com ^ | By Congressman Jeff Miller

[servantboy777]

Good luck

Money is power, power is control. You think for one minute the fat cats up in the Senate are going to give up the enforcement arm of government like the IRS?

[RobFromGa]

before the effect of lower labor rates kicks in.

SInce they expect everyone to get 100% paychecks, there won't be a huge lowering of labor rates-- maybe 7% less.

If I repair someone’s computer or fix their car and get compensated for it, am I supposed to charge the tax?

Yes, if it is a personal computer or personal vehicle-- no tax if they claim it is a business computer or business vehicle. Same for plane tickets, office supplies, hotel rooms, restaurant meals, gasoline, auto repairs, tolls, promotional giveaways, postage, any anything else that could have a potential for business OR personal use. Does that seem like a big loophole? Does anyone think that will be exploited to avoid a 29.87% (or higher) sales tax?

And what happens when sales are moved from taxable to non-taxable in the FairTax bill? That's right, the sales tax rate is increased to make up for the shortfall...

but as each one of is our own little business, does that not open us up to gov’t intrusion as we provide any goods or services to anyone else?

Bingo, there will have to be FairTax enforcement agents and they will still have teeth...

The FairTax won't work as advertised. Simple as daylight.

[cicada]

I’m not saying that it can’t or won’t work, there are just so many ramifications of so fundamentally changing the way we do business. The way we do business is changing rapidly already. If the tax were solely on material goods I could step further on board.

With our increasingly service based economy, I think it opens each one of us up too much to federal accountability as service providers. I think though that the NRST would make the US more amenable to producing goods here, so it could come out even. I’d like to see the services angle discussed more.

I guess I should take it up with Boortz or the FairTax folks. I think tax reform is crucial, I want to make an informed decision.

[cicada]

Another concern I have is that all the people receiving entitlements (Medicare and Medicaid, ...) will still be getting them under the NRST. Thus the 23% inclusive rate. How do you determine the market rate of a government benefit?

[RobFromGa]

Boortz doesn’t understand what he is talking about most of the time, he is an entertainer who used the FairTax issue to get a NYT #1 Bestselling Author title next to his name. The book is full of inaccurate and misleading statements. In the 2nd Edition, they made over 100 changes but many mistakes and rosy pipedreams remain.

And the worst part is that the rank and file still believe the “Keep 100% of your paycheck and prices will stay the same” mantra— nothing but a FREE LUNCH call to action.

Your idea of not taxing services would require the rate to be at least double (60%+ when expressed as a sales tax) on goods. The base would be reduced too much.

The problem is almost $2 trillion dollars in tax receipts is a large number to get out of the economy without a very rigid and powerful collection/enforcement appartus behind it. People only pay income tax voluntarily because of the reporting by third parties— employers and financial institutions, take that away and collection rates would plummet making the burden higher on the honest people.