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The People Must Demand The Fair Tax
GOPUSA ^ | August 28, 2007 | By Doug Patton

Posted on 08/28/2007 4:39:18 PM PDT by Bigun

The People Must Demand The Fair Tax
By Doug Patton
August 28, 2007

Last year, during the United States Senate race in Nebraska, Republican challenger Pete Ricketts suggested that every option must be considered when looking at ways to reform our federal tax system. Among the list of alternatives Ricketts said should be on the table was a national sales tax known simply as the "Fair Tax."

The Democrat incumbent, U.S. Sen. Ben Nelson, launched an attack on his opponent that was, at best, distorted and condescending, at worst, irrational demagoguery. One would have thought that Ricketts had suggested stealing all the assets of the poor and handing them over to Warren Buffet and Bill Gates.

Recently, the panel of pundits on ABC's "This Week with George Stephanopoulos," discussing the apparent rise in popularity of former Arkansas Governor Mike Huckabee's presidential campaign message, scoffed at Huckabee's unabashed promotion of the Fair Tax.

George Will, the token "conservative" on the panel, brushed it aside with the disbelief of an elitist who cannot understand the burden of the average worker who would love to take home his or her entire paycheck, as the Fair Tax would allow him or her to do. Will opined that Huckabee's second place showing in the Iowa straw poll was even more amazing given the fact that "he supported a national sales tax of thirty percent, which means that if you buy a one million dollar house, you'll be writing a check to the government for three hundred thousand dollars." Of course, the others on the panel readily agreed.

The elites of this country, who buy those million-dollar homes, are not enamored with the Fair Tax. They would be if they took the time to understand its appeal.

The Fair Tax would replace all federal income taxes. No more federal withholding. No more Social Security withholding. No more Medicare withholding. No more stealing from the paychecks of American workers before they even see it and then pretending to give them a refund, without interest, at the end of the year. No more saving receipts for tax deductions. No more IRS audits. No more April 15th.

Instead, the Fair Tax would put us in control. All consumer items would be taxed. Business purchases would not. By allowing us to make the determination about what we buy and when we buy it, the ability of our legislators to manipulate our behavior is eliminated. That is why the elites don't like it. They can't control the public's spending habits under such a system.

The current federal tax system is broken. It cannot be fixed. Since the inception of the federal income tax with the passage of the 16th Amendment in 1913, federal corruption and control have turned it into a Frankenstein monster that torments the people and serves the special interests. A tax on a person's income is a tax on production, and as Ronald Reagan once said, "Whatever you tax, you get less of."

Because the poor are forced to spend a disproportionate percentage of their resources to cover the tax on necessities, the Fair Tax hits them the hardest. That issue can be addressed by simply issuing a "prebate" check each month to every household in the country. Unlike disingenuous tax credits, deductions, exemptions and other loopholes in the current income tax code, a prebate check is a clean, honest method of covering the sales tax on food, clothing and shelter - up to the poverty level.

Of course, removing the income tax on corporations will reduce the cost of everything we buy, since corporations don't pay taxes. They simply pass them along to consumers. The Fair Tax plan calculates that removing the corporate income tax will result in a reduction in the cost of virtually every consumer item on the market. In fact, it will just about offset the tax on those products. Imagine paying the same price for something but having your entire paycheck to buy it.

And then there are the billions of dollars that flow untaxed through our economy today: drug dealers, prostitutes, pornographers, foreign tourists. Imagine how much revenue could be raised simply by taxing the things those people consume.

There would be no more audits, no more justifying deductions, and April 15th would become just another spring day. But only if the people stand up to the elites and demand it.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Government
KEYWORDS: fairness; fairtax; freedom; reform; tax; taxes
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To: lewislynn
Employing social psychology to convince and encourage is not ‘scary’ nor demeanng.

Why would social psychology need to be used to convince and encouraged women to do what Hostage claims they already want to do?

Perhaps he knows what women want better than the women, themselves.

481 posted on 09/01/2007 8:30:31 AM PDT by lucysmom
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To: robertpaulsen
Why is the prebate necessary if prices remain the same and people have the same amount of money to spend?

To subsidize the necessary child baring that takes women out of the work force.

482 posted on 09/01/2007 8:33:58 AM PDT by lucysmom
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To: robertpaulsen
Why is the prebate necessary if prices remain the same and people have the same amount of money to spend?

The prebate is the pacifier for the nanny set. It is also a benefit for the after tax retired set. It also shuts up the "No Fair" crowd.

483 posted on 09/01/2007 8:41:44 AM PDT by groanup (Limited government is the answer. What's the question?)
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To: lucysmom
Perhaps he knows what women want better than the women, themselves
Only because they haven't attended Doctor Hostage's reeducation camp.

I wonder if he makes his wife walk 3 paces behind him...in a Burka.

484 posted on 09/01/2007 8:42:05 AM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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To: robertpaulsen
Why is the prebate necessary if prices remain the same and people have the same amount of money to spend?
Not only that, but how does that and even more (empty) promises make the "true cost of government more visible"?
485 posted on 09/01/2007 8:50:10 AM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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To: groanup
"The prebate is the pacifier for the nanny set. It also shuts up the "No Fair" crowd."

Basically, a political rather than an economic decision intended to get votes. An awfully expensive and socialistic means to an end, wouldn't you agree?

What is it about these groups that makes them incapable of understanding that prices and incomes won't change, meaning a prebate is not necessary for anyone?

"It is also a benefit for the after tax retired set."

True. Every little bit helps. But it comes nowhere near reimbursing them for what they've obtained with post tax dollars.

486 posted on 09/01/2007 9:01:14 AM PDT by robertpaulsen
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To: lewislynn
"but how does that ... make the true cost of government more visible"?

They're living up to their word. Via the prebate, they're making the increased cost and size of government more visible. It's for all the dingbat voters who will be thinking, "It's about time that I got something from the government for a change".

487 posted on 09/01/2007 9:13:53 AM PDT by robertpaulsen
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To: robertpaulsen
Basically, a political rather than an economic decision intended to get votes. An awfully expensive and socialistic means to an end, wouldn't you agree?

Politics is the art of compromise.

In order to slay a dragon you may have to sacrifice a few knights.

488 posted on 09/01/2007 9:20:31 AM PDT by groanup (Limited government is the answer. What's the question?)
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To: groanup
Politics is the art of compromise.
Sadly, only Republicans live by that rule.
489 posted on 09/01/2007 9:35:10 AM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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To: Squat
I really prefer the “National Sales Tax” 3% period no more and food (dairy, grains, fruits & veggies) and Dr. prescribed medicines are not taxed. Booze, soda etc are taxed.

The Fair Tax rate of 23% is revenuse neutral because it take in the same amount of funding as the income tax. The rate you suggest is far too low and would result in the rate being raised in the short run.

Everyone pays their fair share.

Everyone will pay their fair share with the Fair Tax as they will have to pay based on the amount spent. Most people's spending is constrained by the amount of money they possess.

With a fair tax, there are too many loop holes and the wrong house could meddle with the rates.

There will be far fewer loopholes with The Fair Tax since people will be forced to pay the tax when they make a purchase. It will be extremely difficult for Congress to change the rate due to the Fair Tax's transparency of having the rate printed on the receipt. People would know immediately if the rate were raised. More importantly raising the rate too high will result in people spending less. Spending less will result in less taxes collected by the government. Congress will have to keep the rate within reasonable margins it they want o maximize their collections. Founding father and first Secretary of the Treasury Alexander Hamilton wrote about this principle in his Federalist paper #21. To quote:

"It is a signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess. THey prescribe their own limit, which cannot be exceeded without defeating the end proposed-that is, an extension of the revenue. When applied to this object, the sayin is as just as it is witty that, "in political arithmetic, two and two do not always make four." If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them. "
490 posted on 09/01/2007 11:22:11 AM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

When you quote something, try to include the source, if it’s not too hard on you...


491 posted on 09/01/2007 12:16:10 PM PDT by xcamel (FDT/2008 -- talk about it >> irc://irc.freenode.net/fredthompson)
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To: robertpaulsen

We are giving him $500 because most people in his position are too stupid to see the benefits of the bill, and must have something tangible. It eliminates the argument that will surely be brought forth by liberals that the Fair Tax will “hurt the poor.”


492 posted on 09/01/2007 12:16:59 PM PDT by SALChamps03
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To: SALChamps03

what the FTN’s can’t get their heads around, is that the pitfalls of the bill far outweigh the benefits. It matters not how bad the current system, the unfairtax does nothing to correct the addiction to government spending.


493 posted on 09/01/2007 2:10:29 PM PDT by xcamel (FDT/2008 -- talk about it >> irc://irc.freenode.net/fredthompson)
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To: xcamel
When you quote something, try to include the source, if it’s not too hard on you...

Are you serious? As I stated in post #490 Founding father and first Secretary of the Treasury Alexander Hamilton wrote about this principle in his Federalist paper #21.

The source is Hamilton's Federalist Paper #21! You can't see the forest for the trees! LOL!!!!!!!!!

494 posted on 09/01/2007 2:28:49 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D
Funny how Patric Henry and the anti-federalists won that fight....

"The wheels of the general government having been thus clogged, and the arrearages of taxes still accumulating, it may be asked what prospect is there of the government resuming its proper tone, -unless more compulsory powers are granted? To this it may be answered, that the produce of imposts on commerce, which all agree to vest in Congress, together with the immense tracts of land at their disposal, will rapidly lessen and eventually discharge the present encumbrances. When this takes place, the mode by requisition will be found perfectly adequate to the extraordinary exigencies of the union. Congress have lately sold land to the amount of eight millions of dollars, which is a considerable portion of the whole debt." --Patric Henry

495 posted on 09/01/2007 3:44:59 PM PDT by xcamel (FDT/2008 -- talk about it >> irc://irc.freenode.net/fredthompson)
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To: Bigun

It will never happen because the bottome 50% don’t pay any federal income taxes. That’s the whole problem with the tax code. Not enough people pay taxes to get any reform.

John


496 posted on 09/01/2007 3:48:14 PM PDT by Diggity
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To: Diggity
It will never happen because the bottome 50% don’t pay any federal income taxes.

The Fair Tax is not an income tax. It will replace the income tax with a national sales tax. Everyone will pay the tax whenever they purchase a service or new product.
497 posted on 09/01/2007 4:34:16 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

Yes but it won’t pass because half the public doesn’t want it because they don’t pay any taxes now.

That’s the whole problem with the tax code. Only a small% pay the bills.

Our tax code is unconstitutional because it victimizes a minority of the taxpayer by making them paying why more then there share.

Top 1% pay about 35% of the federal taxes.

John


498 posted on 09/01/2007 4:54:56 PM PDT by Diggity
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To: Diggity
Yes but it won’t pass because half the public doesn’t want it because they don’t pay any taxes now.

Your response illustrates the biggest fallacy and problem with the insidious income tax code. Everyone of all economic classes pays taxes all the time. The problem is they are hidden/embedded/value added taxes(VATS). The income tax bracket most people fall into is 15 percent, and all wage earners pay 7.65 percent in payroll taxes. That’s 23 percent right there, without taking into account the 7.65 percent employer matching! On top of that, you have to add in the business taxes and associated compliance costs passed on to consumers in higher prices. Fair Tax FAQ #5
499 posted on 09/01/2007 5:21:30 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

I don’t count ss taxes as federal taxes. Plus most people dont’ pay any federal income taxes. That 15% bracket is before all the exemptions. 50% don’t pay ANY income taxes.

It will take the courts to declare our system unconstitutional before anything gets changed.

John


500 posted on 09/01/2007 5:45:26 PM PDT by Diggity
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