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To: Hostage
By abolishing all federal taxation, the FairTax lowers the cost of all products and services by an average 20%

Are you back to this lie? THis is only true if people only get to keep their current takehome. Most of these taxes are payroll and withheld income taxes.

With the FairTax promise of "Keep 100% of your paycheck" at most prices for domestic goods would drop 7-10% before the addition of the at least 30% FairTax (more likely 40% plus). Prices out the door would skyrocket.

And the number of people buying things on the black market or for business use would also skyrocket requiring an NRST enforcement team with real teeth. Every bit as bad as the IRS. And the higher the tax, the bigger the evasion, requiring an even higher tax.

But we've been over all this before ad infinitum...

241 posted on 05/12/2009 12:27:08 PM PDT by RobFromGa (The FairTax is to tax policy as Global Warming is to science.)
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To: RobFromGa
While I have been a Fair Tax supporter for years, there are problems with it. Tax evasion would be very high. Its no different than now thought. People still barter things tax free. Happens all the time. Technically if you give a person $10 to wash your car there needs to be tax paid, even if its the kid across the street. Its crazy.

The benefit is that all of the drug dealers(there are lots) and other criminal enterprises would suddenly be paying the tax. They wouldn't care really because they could just steal more or raise the price on their drugs. So a neutral loss on tax evasion (the same people will continue to do it) and the increase in black market profits toward the tax base might actually lead to a net gain.

The best scenario is to stop taxing corporate profits. Corporations pay out big pay and bonuses so they don't get nailed with tax. Take that tax away, and corporations would hold more money and invest it into growing the business.

I own several companies, one being a manufacturer. The government is trying to put me out of business, and drive my employees out of private healthcare. That is not right and should not be tolerated.

The Fair Tax isn't the big fix but should be part of the grand plan. Each state needs to claim sovereignty and take responsibility of their own citizens rather than the Federal Government running everything. Go back to limited Federal government with a Fair Tax only for their limited expenses. Social programs should be at the state level only.

246 posted on 05/12/2009 1:58:18 PM PDT by ritewingwarrior (Just say No to socialism.)
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