Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Man50D

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.

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


478 posted on 09/01/2007 8:19:25 AM PDT by Squat (Deport the illegals now! Turn Home Depot's into the prisons to hold the illegals!.)
[ Post Reply | Private Reply | To 4 | View Replies ]


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!)
[ Post Reply | Private Reply | To 478 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson