You criticisms of the FairTax are weak, yet you claim the FairTax will cause havoc. You have nothing to back that up and when you try to back it up, it’s highly flawed as has been pointed out numerous numerous times here on FR.
Rather than demolish your arguments again about the FairTax being worse let’s see what you think abou the IRS and the Income tax.
Now if you are against the IRS and the Income tax let’s see a list of items that you don’t like about the IRS and Income tax.
I’m making a note that you are not for keeping the IRS as I await you comoment on why you don’t like the Income tax.
my proposals are not up for discussion, yours are.
let’s say that a business pays 40% tax on an item. if you eliminate that tax, do you reallyl think that they will automatically reduce their pricess by the 40%??? Doesn’t the company have a fiduciary obligation to their shareholders to maximize profits? Can’t they be sued for not doing so? Do you really think, given these conditions that it is hardly likely that prices will drop by the 40%?
so there will NOT be a price neutral effect (taking the tax ahen the item is sold rather than as currently done), there will be a net increase in prices spuring inflation at the least.
as prices increase, sales decrease. a sales decrease the government still needs that revenue, so the amount of tax on that item will have to increase, depressing sales still further. ad nauseum.
And as businesses will be loathe to decrease prices when the 40% tax is eliminated, government too will want thier extra cut. revenues will have to remain the same, or increase, in order for this to be acceptable. my guess will be that the politicians will use this proposal to wrest even more money from the people, another net loser.
your calling such valid objections and concerns “weak” does not negate them. you cannot guarantee that pre-tax prices will fall by any predictable amount, any more than you can guarantee that the finished law will look anything like your current proposal.
the smart money says that by the time congress gets though with your agenda, that you won’t recognize it, there would be no savings, government revenue will increase, the rich, who invest more of a percentage of their income will pay less taxes, and the middle class will end up paying more.
the middle class loses, the rich get richer, government gets more money.