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To: groanup

From FAQ #4
Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple?

Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. 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.”
We’ll take 3 out of 4....food, housing, medical services.


421 posted on 08/31/2007 9:45:11 PM PDT by CIDKauf (No man has a good enough memory to be a successful liar.)
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To: CIDKauf
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.”
Food, medical services and even medical/medicne research are all subsidized by taxpayers. Taking their tax burden away wouldn't change that, it would just be one more subsidy by the taxpayers.
426 posted on 08/31/2007 10:10:51 PM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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