Posted on 08/28/2007 4:39:18 PM PDT by Bigun
Of all the economists both pro and con weighing in on the FairTax, none have shown it to be inflationary. But YOU have? Just by saying:
And any plan that has prices rise 20-30% or more in real terms is inflationary.
Sorry Rob. The definition of inflation is just out of your reach. Actually, since I have explained it to you and you still don't understand (or are parroting your talking points) it is way our of your reach.
A unit of Money-- a dollar-- is worth less after than it was before.
Let's do the math, shall we?
You make 100,000 a year.
You pay taxes of 25,000 a year.
You have 75,000 to spend on life's piles of goodies.
Under the FairTax you make 100,000 a year.
If you spend it all you'll pay appx. 25,000 (minus prebate) in taxes.
Remember?
So, once again you have about 75,000 to spend.
Where is the loss of purchasing power? Where is the inflation?
Not everyone is a wage earner, and not everyone will see an increase in take-home pay. And not every dollar is earned after the FairTax is implemented, many are already in the system in an after-tax account. And there are also many fixed dollar debts like mortgages that would be paid off with more plentiful and less valuable “after” dollars.
Works the same for a lawyer billing by the hour or a private plumber.
...many are already in the system in an after-tax account.
Bringing this up again? Talking points? As I have said many times maybe that should be addressed in the work up of the legislation. Although certain advantages will be enjoyed by those folks too.
And there are also many fixed dollar debts like mortgages that would be paid off with more plentiful and less valuable “after” dollars.
Huh? Begging your pardon but you are not sticking to the script. Remember, in your world there will be fewer dollars with which to pay off anything.
We're talking about the FairTax world, and in that world the assertion is that almost everyone will be walking around with 20-25% more dollars.
Sorry, I was a bit unclear. The prebates represent a cost to implement and operate the system, when I don’t see the need for monthly checks to taxpayers. Maybe this is a part of the proposal that could be amended to pick up additional support for plan, or maybe I’m being unrealistic in that support would be eroded by amending the proposal to eliminate prebates? Anyway, many will disagree with prebates as it is a move to a higher degree of socialism in government and has an unnecessary overhead cost to issue them.
From the Fair Tax site FAQ #4
“The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.”
Under Fair Tax, the prices for food, clothing, and medical expenses would be less due to elimination of corporate taxes, and therefore doesn’t matter if they were exempt or not. Additionally, to use the system of prebates could cost more than it would to just forego collecting any taxes on these items.
From the Fair Tax site FAQ #4
“Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today.”
Lobbyists will still be there without or without Fair Tax or any other reform for that matter.
And there are also many fixed dollar debts like mortgages that would be paid off with more plentiful and less valuable “after” dollars.
What do YOU think the orginal limits were?
That’s who I was thinking of.
Of gosh - I'm cut to the quick - not.
Manipulative liars disgust me.
Why in the world would you need a computer to calculate something as simple as what you claim the FairTax to be?
My first job, back in the dark ages, was in retail. No computers to automatically figure and add the sales tax, or change due the customer. Somehow, we muddled through just fine.
Not to mention the immutable FairTax bill.
The inflation is in the price increase that results in $75,000 buying fewer of life's goddies.
You know that the present Income tax is the tool of choice for Socialists today. Their number one objection and scare tactic is to claim that a national sales tax will tax the poor disproportionately. Think about that.
Furthermore, in American history pre-Income tax, the same complaints were made about the excise taxes of that era.
The choice comes down to this offering to the American people:
Behind Door 1 is the requirement for all households to file a federal income tax return under threat of criminal prosecution and imprisonment.
Behind Door 2 is an offering for all households to register with the federal government for the purpose of receiving a check.
I don’t think it’s too hard to guess what people would prefer.
Behind Door 1 lies a system where the federal government confiscates revenue from households and doles it out to entities on their list of favorites.
Behind Door 2 lies a system where households regardless of financial position are given a check of the same amount to offset consumption taxes below the poverty level.
So the argument that the FairTax is more socialist than the Income tax is specious.
As to your second comment regarding lobbyists and exemptions, yes lobbyists will be there initially in failed attempts to reimpose the Income tax. But repeal of the 16th Amendment will leave them with no place to go. But lobbyists that are seeking government contracts for whatever purpose (health, military, etc.) will be forever camped out on the banks of the Potomac. But the ability of members of Congress to trade favors for tax votes will be squelched.
To recap on the rebate, the FairTax rebate is a small price to pay to rid the country of the monstrous tax code that presently exists. The rebate is fair to all and is not subject to special favors or abuse. The rebate will not be manipulated because it is linked to a stable and well accepted method of determination of the poverty level by DHHS.
Most understand that computers today record auditable transactions. Bank deposits are easily compared with auditable data for enforcement purposes.
Large amd medium level retailers conduct the bulk of their business electronically. Smaller businesses can still be audited by hand but the larger and mid-level retailers must be in compliance else the system breaks down.
In the past before the telecommunications revolution an audit of large retailer transactions would have expended too many resources.
I really don’t want you posting to me as you have gone over the top in your insinuations of my statements. I find them very disturbing. Ask others these questions as I don’t want to be reminded of your previous posts. Your questions are sophomoric in nature and can be handled by any number of posters on these threads. Besides everyone knows your questions are not questions per se, they are sniping comments packaged in questions.
Proving again that “liars figure”
...that would in truth be “stagflation” aka the Carter Administration.
Illustrate this mathematically please.
Everyone is eligible. There is no determination. It is based on family size.
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