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To: RayChuang88
While the flat tax akin to what Steve Forbes proposed in 1996 is a massive improvement over what we have now, you still have the keep a small portion of the IRS in place to administer it. And you still have to file tax forms every April 15th anyway.

The thing that keeps coming back on the FairTax is how complicated it really is (see here); besides that, there's no reason that the FairTax couldn't be transformed over time into a monster worse than our current system; imagine, if you will a FairTax which varies the rate of the sales-tax based on your income (ostensibly to keep it from being "regressive") and then adding the type of item to the set of variables (oh, look ammo now has a 5000% tax!)… now imagine that system tied into commerce itself, say by forbidding buying or selling to anyone who isn't registered in this commerce/tax system (ostensibly to prevent fraud/tax-evasion; don't worry it's perfectly secure, by RF-microchip embedded in your forehead or right hand).

In short, the estimated savings in terms of combined yearly compliance/economic opportunity costs of the tax code is about 75%, not the 95% you get under FairTax.

I seriously doubt that 95% number.

44 posted on 06/15/2016 11:30:31 AM PDT by Edward.Fish
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To: Edward.Fish

My biggest problem with the Fair Tax is that it subjects post-tax income to new purchases (and therefore subject to the Fair Tax).

That means that I would have paid income tax on that money when I earned it under the current system, and then I’d pay the Fair Tax (the replacement for the current tax system) again upon buying something under the new tax system.


45 posted on 06/15/2016 11:34:46 AM PDT by Ted Grant
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