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To: Jim from C-Town
Fair-taxers should get it into their heads that this is never going to happen.

Oh really? Tell that to the cosponsors of The Fair Tax Act whose numbers have increased with each session of Congress since The Fair Tax Act was first introduced since 1999. The increase is a direct correlation to the growing grassroots Fair Tax movement since politicians understand they need to satisfy their constituents or risk losing their jobs.

As easy as it sounds it is ridiculous to consider that the government will be ‘prebating’ a check to everybody in the country in order to allow for a VAT or point of sale tax.

The Fair Tax Act is not a VAT! We have a VAT currently with the federal income tax. Corporations have taxes levied against their income. That tax along with associated compliance costs are costs that are factored into the price at each stage of production for every thing we purchase. It is essentially a VAT. The Fair Tax will eliminate the VAT by eliminating corporate income taxes.

It is much more likely that a flatter and fairer tax with limited deductions would be easier and much more efficient too not only sell to the American people but to enact.

The Fair Tax is a flat tax but on consumption instead of productivity since it will apply one rate only at the point of sale. We have already tried a flat tax on income and it has failed miserably. It's our current income tax code. People were taxed 1% on the first $20,000 of income and 7% on income over $500,000 when the 16th Amendment was passed in 1913. At the very least 99% of the population earned less than $500,000. It was essentially a one tiered flat tax system. Over 96 years it has morphed into the multi tiered increasingly intrusive, oppressive and complex system we have today except faster thanks to the thousands of lobbyists who didn't exist in 1913. Those lobbyists successfully lobbied Congress to impose all sorts of deductions and loopholes buried in the income tax code. Limited deductions will quickly become many with a flat tax on income.

This ignores the fact that a heavy progressive tax on income is one plank in Karl Marx's Communist Manifesto. It is so because Communists understand taxing productivity and at a gradual increasing eventually discourages people from working. They will eventually turn to the state for dependence.
221 posted on 05/27/2009 9:34:35 AM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D
“Oh really? Tell that to the cosponsors of The Fair Tax Act whose numbers have increased with each session of Congress since The Fair Tax Act was first introduced since 1999.”

Really! The fact is that the fair tax will never get done. It doesn't matter how many sponsors the bill has now or 10 years ago. I assure you that 10, 20, 30, 100 years from now the Fair tax will still not be implemented.

I want you to understand I think the fair tax may be fairer, It may do everything they say it will do, it may be all sunshine and happiness, It doesn't make it reality.

The people sponsoring the Fair Tax are the same that can't muster enough votes to get any legislation passed. They are in the minority and have allot of work to get into the majority. I hope they can do it. I think it would be a good discussion for the congress to have. However, I am completely skeptical about it ever getting a real comity hearing much less getting to the floor for an up or down vote.

268 posted on 05/27/2009 11:53:30 AM PDT by Jim from C-Town
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