Replies

First, the FairTax vs. Flat tax argument is irrelevant to the major problem we have today. The main problem is we spend too much and borrow too much. Actually, the FairTax does less to address the main problem. It's revenue neutral by design. A no exemptions flat tax would probably be revenue positive, reducing borrowing and deficits.

Your last statement here is also absolutely false.

Principled wrote:

The Fair Tax folks have not done well at splainin’ this point. But the nrst does have drug dealers pay 100% of their tax burden when they purchase legal retail consumption. Not so under the income tax. The inc tax only has them pay business taxes [embedded] - which do not represent 100% of their tax burden.

So I think they should say the nrst captures _more_ taxes from the underground economy.

Under the income tax system we have today, the drug dealer's customer is paying income taxes on the money he earns. The recreational drug buyer spends "after tax" dollars on his purchases from the drug dealer. And the prostitute's john does the same, paying the prostitute with "after tax" dollars.

Where, under the FairTax, the john and the recreational drug purchaser don't pay any taxes on their income. Also, they don't pay any tax on their "underground economy" purchases either.

The FairTax shifts the taxation around the underground economy from the demand side to the supply side. That's all. The FairTax collects no additional taxes from the "underground economy." The same total transactions are taxed under both systems, and the same transactions, the "underground economy" or "black market" transactions evade taxation under both systems. The net gain for the FairTax from the "underground economy" is zero.

Principled wrote:

O c’mon. A dentist or accountant only need purchase a programmed cash register like any of the other gazillion service providers who do collect sales tax now.

lol

It's interesting that you zeroed in on the "rich" service providers, and the ones with actual offices, like the doctors, dentists and accountants.

Many of the businesses that will be affected by the FairTax are very small businesses in competitive environments. Buying a cash register isn't really in their budget. Also, for some of them, lugging around a cash register as they do their business will make life more difficult for them.

For just one example, I get my lawn mowed by a guy that rides his big mower around my neighborhood. He has a truck with his name on it, and he's legitimate, has a business license, is insured and is professional. But I live in a neighborhood where he has a lot of customers, and he parks his truck at the entrance to our neighborhood, rolls his mowers off the back and and he and his sidekick ride his mowers around, taking care of his customers. When they do my lawn, they knock on the door and I pay them (cash or check, depends on whether I have cash around). Are you telling me hat under the fair tax, my neighbors and I will need to pay enough more for our getting our lawns mowed so that our lawn guy can buy a cash register (or two)? and he'll need to carry it around on his mower, or maybe to install it in his truck and drive around the neighborhood to collect his money and give us all a Section 509 compliant receipt from his cash register?

Or, when I purchase services like lawn mowing (and roofing and house painting and pool cleaning and exterminator service and in home major appliance repair and ...), am I actually hiring "domestic servants" (a term which is referenced in the FairTax, but not really defined there). If that's the case, then we homeowners will be required to pay the FairTax on these services directly as "taxable employers?" The term "taxable employer" is defined, but refers to "domestic servants," which I don't believe is defined anywhere in HR25. (I would look myself, but Thomas.loc.gov is down right now for "scheduled hardware maintenance").

ping

It's interesting that you zeroed in on the "rich" service providers, and the ones with actual offices, like the doctors, dentists and accountants.

You're a liar and a paid poster.

I didn't zero in on anyone - you made that up. YOU zeroed in on the "rich". I didn't even say that. YOU did. My post pointed out that people who don't currently collect sales tax can do so trivially.

You're all over the place talking about a zillion things b/c your goal isn't to argue the merits of the nrst, it's to keep the status quo.

The nrst is revenue neutral b/c by law it has to be. C'mon. We're wise to you.

Are you telling me hat under the fair tax, my neighbors and I will need to pay enough more for our getting our lawns mowed so that our lawn guy can buy a cash register (or two)? and he'll need to carry it around on his mower, or maybe to install it in his truck and drive around the neighborhood to collect his money and give us all a Section 509 compliant receipt from his cash register?

A HAH HAHAHAHAAA!

Yes, common cents. Lawn services will carry cash registers on their tractors. And swipe machines on the weed-whackers.

Jeez you're posting stupid.