Since the appearance of Boortz' book, Fair Taxers have bandied a 23% rate while admitting the truth in fine print. The citations to that effect are in the link I provided you. The truth is that it is 23% of the total with the tax included. That's a 30% rate on the sale price. Add the sales taxes I pay here and it's 39%.
The von Mises Institute called it a lie too. You call them an enemy of liberty?
The IRS will be abolished and state tax collection agencies will collect the NRST, just as they did before the 16th Amendment.
No it won't. Somebody will have to enforce collections.
As for enforcement, the FairTax is orders of magnitude more efficient than the Income tax. First, it ***takes two*** people to cheat under the FairTax, a buyer and a seller.
It also makes convictions of cheaters more problematic, because they'll support each others stories. Moreover, without a Federal income tax the States will likely drop their State income taxes and either hike property taxes or add to the sales tax. To replace a 12% income tax in California with a sales tax would push the total sales tax with NRST to somewhere near 50%. Hence, because of the amount of money involved, and because of the difficulty in collecting from private parties, the enforcement scheme will have to be more draconian and invasive than it is now, not just once a year.
And at that 50% rate, you think NRST will sell? And you think people won't cheat in droves? If massive numbers of people cheat, you think there won't be an intrusive IRS tracking EVERY SINGLE TRANSACTION to get their cut? That's so unrealistic as to be flamingly dishonest.
Second, more than 70% of all retail transactions are carried out by about 3000 corporate chains.
And you think that won't change? You think Federal, State, and local governments won't go after that 50% with a vengeance by forcing individuals to abide by the same reporting standards as "forced" upon corporations? Get real. Loading sole proprietors with the same bureaucratic "reporting" and "compliance" requirements as the big guys can handle easily has been the game in every other form of regulation for nearly a century.
No, it is not 'the' problem, it is 'a' problem. And it is a totally separate problem that can only be helped by the FairTax because of the transparency of the FairTax.
Nonsense. With 30% of all transactions in private, the cost of that "transparency" will be a police state like we've never seen. You're in fantasy land.
And you also need to subtract the income tax you will be paying because you won't be paying it anymore. And you will also not be paying the federal taxes that are embedded in the retail items.
The von Mises Institute called it a lie too. You call them an enemy of liberty?
Send me a link and a name.
The IRS will be abolished and state tax collection agencies will collect the NRST, just as they did before the 16th Amendment.
No it won't. Somebody will have to enforce collections.
It would be better for discussion if you would bother to read. It was clearly written that state collection agencies would collect the NRST.
As for enforcement, the FairTax is orders of magnitude more efficient than the Income tax. First, it ***takes two*** people to cheat under the FairTax, a buyer and a seller.
It also makes convictions of cheaters more problematic, because they'll support each others stories. Moreover, without a Federal income tax the States will likely drop their State income taxes and either hike property taxes or add to the sales tax. To replace a 12% income tax in California with a sales tax would push the total sales tax with NRST to somewhere near 50%. Hence, because of the amount of money involved, and because of the difficulty in collecting from private parties, the enforcement scheme will have to be more draconian and invasive than it is now, not just once a year.
You can always move out of California. The last time I checked it was still legal to do so. In fact, California could just go the way of Detroit.
And at that 50% rate, you think NRST will sell? And you think people won't cheat in droves? If massive numbers of people cheat, you think there won't be an intrusive IRS tracking EVERY SINGLE TRANSACTION to get their cut? That's so unrealistic as to be flamingly dishonest.
50%? This is getting absurd.
Second, more than 70% of all retail transactions are carried out by about 3000 corporate chains.
And you think that won't change? You think Federal, State, and local governments won't go after that 50% with a vengeance by forcing individuals to abide by the same reporting standards as "forced" upon corporations? Get real. Loading sole proprietors with the same bureaucratic "reporting" and "compliance" requirements as the big guys can handle easily has been the game in every other form of regulation for nearly a century.
It would be helpful if you had a knowledge of the facts. 50% is not the NRST rate, far from it. Sole proprietors have to collect sales tax now, they just collect more under a different category of tax, and they send it to the same place.
Oh I can surely see how people will be upset. But they will also know that their costs are lowered substantially and their federal income tax is gone, disappeared! But business owners will have a new problem debating with their customers why so much tax has to be collected for the federal government. I think that will bring a wake up call to the public about the whole problem of spending, hmmmm....lots of good coming from this.
No, it is not 'the' problem, it is 'a' problem. And it is a totally separate problem that can only be helped by the FairTax because of the transparency of the FairTax.
Nonsense. With 30% of all transactions in private, the cost of that "transparency" will be a police state like we've never seen. You're in fantasy land.
I disagree that it will be a police state more than what exists now. In fact I believe black markets will shrivel up because it will be so easy to sting them when attempts are made to pass goods and services without applying the required tax.
And there is also the huge benefit of finally collecting in an indirect manner those taxes that escape from underground activities such as drug dealing, prostitution, loan sharking, money laundering, why? Because even drug dealers and prostitutes will purchase retail items for living. But under the Income tax, they pay nothing because they declare nothing. Estimates place the level of tax revenues lost due to the underground economy at more than $300 billion.