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To: DakotaRed
And, should that provision not be ratified, then what? So-called Fair Tax and Income tax both?

Per the Fair Tax Act(HR25/S296)

SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.

If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.

Any idea on how many began with the IRS? Can you name any bureaucracy that has not grown?

Are you aware the number of collection points will be reduced from 140 million(individuals and businesses) down to 40 million(businesses only)? The federal agency in charge under The Fair Tax will only grow if the number of collection points increases. That will happen at a much slower pace than the increase of individuals that has occurred with the income tax.

It is John Q. Public that will see he now must pay 30 cents on the dollar in tax that I see running to buy used over new items.

There will not be anymore tax collected under the Fair Tax than the embedded corporate taxes and associated compliance costs included in the price of all goods and services today. The total is nearly 23%. A $100 item actually costs $77 with $23 in taxes. That is the tax inclusive rate. The Fair Tax will eliminate those embedded taxes by eliminating corporate income taxes and apply that rate only at the final point of sale. That is the tax exclusive rate. Do the math: 23/77=30%. The amount of dollars collected will be the same($23)regardless of the rate quoted.

As I have long maintained, we do not tame the beast by changing how we feed the beast. The beast being out of control government spending.

No form of taxes can completely control spending. It's not designed primarily for that purpose however The Fair Tax will control spending to some extent. Increased spending would require Congress to raise the rate. Raising the consumption rate would result in a decrease of purchases. Fewer purchases would cause a corresponding drop in tax collection. Less taxes collected would give Congress less money to spend thereby forcing them to reduce spending or lower the tax rate to maximize collection.
35 posted on 03/15/2010 1:29:33 PM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: Man50D

Taxes are not for controlling spending, that is a strawman. But, taxes continue to feed spending.

And, pray tell, what occurs during the 7 years we wait for ratification of repealing the 16th Amendment and Fair Tax is instituted?

When was that ratification clause added? It’s not in the original.

I didn’t say it before, but I will now, you ignored very relevant points of trouble with this and addrssed more minor points.

Typical of Fair Taxers and Ron Paulies (not saying you are a Paulie).

There are several problems I did not even address.

I’d rather see the IRS gone and a flat tax instead.

The simpler the better and Fair Tax is far from simple.


38 posted on 03/15/2010 1:45:31 PM PDT by DakotaRed (What happened to the country I fought for?)
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