Debating the "Fair Tax"
By
Wednesday January 23, 2008 3:00:42pm


According to Wikipedia: The Fair Tax Act (HR 25/S 1025) is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service and all federal income taxes, payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the point of purchase on all new goods and services.

Click here to read the rest of the article.


[permalink]
Post a comment: You must be logged in order to comment.

 
Slynay
Comments: 348
Joined: 11/29/2005
05/22/2008 03:41:52 PM
Windfall Tax on Retirement Income
>>
>> Adding a tax to your retirement is simply another way
>> of saying to the American people, you're so darn stupid
>> that we're going to keep doing this until we drain every
>> cent from you. That's what the Speaker of the House is
>> saying. Read below...............
>>
>> Nancy Pelosi wants a Windfall Tax on Retirement Income.
>> In other words tax what you have made by investing toward
>> your retirement. This woman is a nut case! You aren't
>> going to believe this.
>>
>> Madam speaker Nancy Pelosi wants to put a Windfall Tax
>> on all stock market profits (including Retirement fund,
>> 401K and Mutual Funds! Alas , it is s true - all to help
>> the 12 Million Illegal Immigrants and other unemployed
>> Minorities!
>>
>> This woman is frightening.
>> She quotes...' We need to work toward the goal of (Huh????)
>> equalizing income, (didn't Marx say something like
>> this), in our country and at the same time limiting the
>> amount the rich can invest.' ( I am not rich, are you)
>>
>> When asked how these new tax dollars would be spent, she
>> replied:
>> 'We need to raise the standard of living of our
>> poor, unemployed and minorities. For example, we have an (Again, Huh)
>> estimated 12 million illegal immigrants in our country who
>> need our help along with millions of unemployed minorities.
>> Stock market windfall profits taxes could go a long way to
>> guarantee these people the standard of living they would
>> like to have as 'Americans'.' (Read that quote
>> again and again and let it sink in. Lower your retirement,
>> give it to others who have not worked as you have for it.
>>
>>
>> Send it on to your friends. I just did!! This lady is
>> out of her mind=
 
bygracethrufaith
Comments: 1272
Joined: 07/13/2007
02/28/2008 05:01:23 PM
ROFLOL!

Hoosier...you're too much!

HA!
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/28/2008 04:46:13 PM
Grace, if you haven't checked lately, please take a look at my profile. I recently modified it in tribute to a certain someone. LOL
 
bygracethrufaith
Comments: 1272
Joined: 07/13/2007
02/28/2008 04:35:17 PM
HA! Hoosier..you're funny. ----agree on the renovation thing!

Don't worry. I won't rely on your opinion. But I'm very grateful to have it so that I can take it into account.

 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/28/2008 04:30:58 PM
Grace.....don't you dare rely on my opinion to make your decision! LOL. Lots of people love the idea, but just not me, not this proposal. I'm still going to look at other options, though. Line of work......clears throat.....yes, wish my employer was Hamilton, Erlanger or Memorial at the moment. I can't even begin to defend Hutcheson spending that kind of money for renovations.....but, boy, it'll sure be purty.

 
bygracethrufaith
Comments: 1272
Joined: 07/13/2007
02/28/2008 04:25:13 PM
Yeah, Hoosier - thanks for thinking this one out for me! LOL. I still haven't learned enough about it to make a fair decision. But it's nice to have an opinion of someone in your line of work. -Helps tremendously to get your viewpoint.
Thanks!
 
maggie
Comments: 1542
Joined: 01/08/2006
02/28/2008 04:08:25 PM
Hoosier, thanks for researching the fair tax plan and sharing your opinion. I haven't thought it was a good idea from the start, not only for health care, but for housing as well. We do need reform, but as you say this ain't it!!!! I still think a flat tax rate is the way to go.

 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/28/2008 03:45:47 PM
Lincoln:

Finally have reached a decison concerning Fair Tax. Even though the Fair Tax sounded wonderful to me at first, I have ultimately decided that I cannot support it. The transparency of taxes on healthcare would end up dramatically increasing out-of-pocket expenses for healthcare for way too many people. Even if the embedded taxes were eliminated, and the cost of healthcare lowered as predicted, I believe sky-rocketing medical costs through the Fair Tax plan would put multitudes in the poorhouse. While I would still like to reform our tax system in this country, this plan ain't it in my opinion.

BTW, the Fair Tax thread over at romenewswire is frequented by several very knowledgable people there regarding the plan. Perhaps you may want to take a look over that way if you still have questions.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/20/2008 01:37:38 PM
Still trembling with the thought of having to pay out-of-pocket taxes on healthcare. Other than that, though, I still like the proposal.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/20/2008 06:51:29 AM
nah
I got side tracked around 180 something. I'll probably finish up by the end of the week. Has anything jumped out at you yet?
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/19/2008 05:32:37 PM
Lincoln:
You finished yet? Almost done here. Will probably finish up tomorrow.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/17/2008 05:14:31 PM
I am much further behind in my reading than you. Just woke up from a wonderful nap.....NASCAR engines in the background, and one awesome rainstorm to rock me to night-night. But I'm awake now. Go Dale, Jr............

Just finished up Chapter 4. I think I have a better idea why the Fair Tax proponets believe companies would flock to America because of the lack of corporate taxes. I am not an economist, but I do believe that the ones working on this proposal aren't just grasping at straws when they make this prediction.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/17/2008 04:49:52 PM
i'm around page 150. it gets kind of deep in this part of the book. they have put up a few charts. I still have an issue with the authors citing certain studies or resources, but not giving specifics...just a lot of generalization.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/17/2008 07:51:26 AM
lincoln:
Thanks for the update. Yes, it is nice to know that there are politicians taking notice. I'm happy that there are people willing to assess the situation AND then provide solutions. Anybody can be a critic, but it takes considerable time, effort, and creativity to come up with a viable alternative. Began reading my book last evening. Very interesting so far.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/16/2008 08:17:06 PM
hoosier!
I met congressman Phil Gringrey today.
I asked him about the FairTax. He said numerous congressmen and senators are behind it. But, the Dems are against it. He said he didn't see anything being done b/c of Dem congress and senate. He forsee both winning majorities and poss. the White House in the fall and nothing still being done.
However, he says that 2010 will be much like '94 and that Republicans will take back Senate and House and FairTax will be back on the playing table.
Again, I'm not sure what my opinion is on this subject yet. However, it is good to know that politicians are aware that the IRS needs to be abolished in some form and the U.S. does need an overhaul of the tax system.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/15/2008 09:18:41 PM
Lincoln:
Took me 4-5 days for each book. USPS no frills shipping. No membership fee at Amazon. Honestly, I don't order that much from amazon.....only buy what I can't find at McKay's. I didn't order the anti Fair Tax book....forget the title.....something like "Fair Tax a Wolf in Sheep's Clothing." I read the reviews and it just didn't seem like a good read. I did read the review that you posted, though. (GeorgiaTex). It referenced a few places where I could look for more information. I may go that route instead. Be happy to give you my feedback during my reading. Plan to get into it this weekend, but ironically one of my chores this weekend.........file my taxes! :-)
 
lincoln
Comments: 44
Joined: 02/05/2008
02/15/2008 08:30:59 PM
Hoosier,
how long does it take to get books through Amazon? Is there a membership fee like Barnes and Noble?

 
lincoln
Comments: 44
Joined: 02/05/2008
02/15/2008 08:30:20 PM
no, i haven't ordered one yet. I've been reading a lot of articles that are against the Fairtax, but most of the arguements are the same ones that have been brought up in here.

I should be done with the new book, but I had other things to do the last couple nights. Then, tonight I got on the computer instead.

Hoosier,
let me know what you think of the book as you go along. I am into the critics section now. Where I am at, they just explained about business owners having the choice of cutting the employees pay and dropping the cost of items OR letting the employees keep their pay (including what they would have had taken out in taxes) and keeping the cost of goods the same. Not a good explaination of that issue in that chapter. But, up to this point, the book has been very informative.

There were a couple times where they brought up a "Harvard study" and I would have liked to have known the basis for the study or sources that info was gathered from.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/15/2008 02:33:42 PM
Got my "Answering the Critics" book today. Will begin digging into it this weekend.

Lincoln: Have you ordered an anti-Fair Tax book yet? I think I will go ahead and order the one off of Amazon.com.
 
maggie
Comments: 1542
Joined: 01/08/2006
02/14/2008 08:07:20 AM
Blogeye, you keep bringing up some good points. One of my biggest concerns is the housing market. I just strongly feel like more people will be priced out of ever owning their own home. Even if they can somehow find an existing home to buy, they wouldn't be able to afford the taxes to update it.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/14/2008 07:41:11 AM
the embedded taxes:
2 options:

1. the employer gives you (the worker) your entire paycheck + the amount that would have been taken out in taxes by the federal government. This would be a substantial increase for some. The employer/producer/business owner then keeps the price of goods the same.

2. the employer cuts the cost of goods (by the amount of the embedded tax) and you receive a check (take home) what you currently receive. However, there are no taxes sent in to the governement. This money is what the employer keeps for eliminating the embedded taxes.

Now, the key question is: How do we know if option 2 is chosen that the employer/producer won't just keep the cost of the goods the same vs. reducing the cost of the good? The easy answer is that competition would drive that producer out of business. But, that isn't a good enough answer for me.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/14/2008 06:19:34 AM
Understood. But how would these taxes be paid though the Fair Tax plan? Would we need to come up with the cash on the spot to pay our portion of the bill which were taxes once the service is rendered?
 
ringgoldone
Comments: 615
Joined: 07/24/2006
02/14/2008 05:50:07 AM
Just like everything else we consume, taxes are already imbedded in the cost of healthcare.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/13/2008 09:15:54 PM
Finally, I understand what you are stating with the math formula. It is addressed in the first book, which I am now finished with.

Yes, it is the same amount, but just figured differently....exclusive vs. inclusive.

Bear with me. I am by no means a financial whiz. :-)

**************************************************

He states embedded taxes on medical care now to be about 26%. pg. 77. Don't know where that figure came from though. Could have been explained elsewhere in the book and I overlooked it.

Embedded taxes now generally figured at 22%, Fair Tax ( which is figured inclusive cost because the tax is already figured in) would be 23% or yes, 30% sales tax if you want to state it that way....yes, that would be correct. The big difference is that we would, of course, have more money to spend because of the eradication of income taxes, Social Security taxes, etc, etc.

There is a lot to absorb. Deal breaker for me, though, would be taxation of healthcare. My goodness, who would be able to afford the taxes on a serious injury/illness.

I also don't exactly understand how the prebate amounts are determined by the current poverty level. Different geographical areas of the country are going to fluctuate tremendously on the price of essentials: Californians cost of essentials are probably a lot more than say the Midwest. Doesn't seem to take that sort of thing into consideration.

Supposedly, it is determined that prices will come down because of the competiveness of the market, but don't know if I buy that theory. Predicts that businesses would flock to America because of no business taxes.....mmm...?

Well, I need to get off of here for now and think on this a bit more.


 
bloggeye
Comments: 291
Joined: 08/18/2006
02/13/2008 05:33:06 PM
I did read a little bit but worked it out for myself. The proponents, I think, on the Fair Tax web site compares it to an income tax. With a fair tax the tax is in the price of the service or good and works similar to an income tax. Let's say you pay $100 for an item. The fair tax is 23% of 100. $23. Minus 23 from 100 and you get 77. The original price of the item. Now, when you go the other way, $23 is actually a 30% traditional sales tax on $77. 77 x .3 = 23.1 Maybe instead of 30% it would be closer to 29.87%.



 
bloggeye
Comments: 291
Joined: 08/18/2006
02/13/2008 03:57:33 PM
I wonder if businesses would feel compelled to pay their employees less with the fairtax? I worked for an Italian restaurant while in college. My bosses were Big Joe, Little Joe and Angelo. They paid under-the-table less than minimum wage with the reasoning that I wouldn't have to pay income tax. $4/hour. For goodness sakes it doesn't add up because I would have gotten most of it back anyway. I quit after they paid me for a week's work with $1 bills. It's just another thought.

 
lincoln
Comments: 44
Joined: 02/05/2008
02/13/2008 02:53:07 PM
Blogeye,

wow, sounds like you have a background in economics or you have thoroughly thought the FairTax and IRS through. So, the traditional tax is 30%? What source does that figure come from?

I'm not sure about how it effects the medical side and I'm sure it will take more than this book to be capable enough to discuss the issue as I should. But, in the mean time I can throw some things out there that I have read about the subject through various publications.

I have a fear of double taxation and a fear of the costs of attempting to move from one system to another (not just actually cost, but hidden costs of changing to a FairTax program).

I actually think the "rich" would be penalized more b/c the more they consume the more they are taxed. I agree with the housing issue. People could circumvent that by purchasing an existing home and then remodeling it. However, they would then pay the tax in the cost of materials needed for remodeling. So, FairTax would either catch it on the front end or work itself into the mix somehow. But there would be a substantial hit on the housing market (if people were smart investors). Same arguement could be made of the automobile industry. I never buy a "new" car b/c I think they are bad investments (we lose $$ the minute the car is driven off the lot). But, smart consumers would start to buy used cars with low mileage and warranties still intact.

The healthcare issue is a very good question.

Thanks for the reply
 
bloggeye
Comments: 291
Joined: 08/18/2006
02/13/2008 01:12:13 PM
lincoln, I didn't really phrase my question correctly or maybe I misunderstood your point when you said "all goods already carry and embedded cost." My question is what are the embedded costs for a $100 doctor bill now?

Furthermore, an embedded tax of 23% equals a traditional sales tax of 30%. That was my original point. I think Boortz tries to confuse folks with his jargon of an "embedded tax." Add a traditional sales tax of 30% to a $77 bill and you're paying $100.

I am against the fair tax because I have several concerns, such as, the added burden on healthcare costs. I also think the construction and housing market would also suffer. I believe rich people will come out better just as they do now. Stock investments are one of the items not taxed. The middle class and elderly will suffer the most. I also think that it will be a greater burden to the states to have to manage this program. I think it will damage our economy and discourage people from buying goods. I don't think that businesses are going to magically lower the prices of their goods and services. I'm just very suspicious.

Nice discussing it with you and am curious to learn your take on the fair tax. I've been to the fair tax website. I would read the book but will not buy it. I am not going to add to Boortz's bank account. I'll have to get it on loan or from the library. I'm open to your thoughts and glad to hear you will check out other points of view.

 
lincoln
Comments: 44
Joined: 02/05/2008
02/13/2008 09:28:43 AM
here is an arguement against the FairTax in the form of a book review on Amazon.
I won't post the review because of the length. But, it is worth the read on Amazon.com

"8 of 31 people found the following review helpful:
Avoiding the Critics -- Again, February 12, 2008
By GeorgiaTex (Atlanta, Georgia) - See all my reviews "
 
maggie
Comments: 1542
Joined: 01/08/2006
02/12/2008 10:52:00 PM
Like most people, I don't like the IRS, but I am just not sure about the Fair Tax. I just think that is a huge amount on goods and services. I still think a flat tax rate and everyone pays, no loopholes is the fairest tax of all. And, if you get a paycheck in this country, whether you are legal or illegal, you pay your 10%. I think it is way past time to stop giving illegal aliens or even legal ones, services, benefits, loans, etc. that if you are born here, you can't get. Maybe, if the super rich paid 10% of their income, those who make below a certain level wouldn't have to pay any taxes at all. As part of the middle class, I am tired of paying for people who won't work and also tired of all the income the rich are able to "hide". Another area where the country could cut expenses, is to do what they say they are going to do and cut out welfare, or at least welfare being the family business. I am not against anyone receiving a helping hand when needed, but we now haver 3rd and 4th generations of welfare families. Sad thing is, there are many families, indiviuals who could use help, but for one reason or another don't qualify for any assistance.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/12/2008 09:31:49 PM
Hoosier,
The new book is a really good and easy read. I've read 60+ pages today.
A lot of issues are addressed in the 1st 60+ pages. Every reader should keep an open mind when researching a subject. But, so far this makes sense. I think I'll follow this book up with an "anti-FairTax" book in order to get a good grasp of the subject. I've read a few articles on the FairTax already. So, I need to supplement this read with an arguement against it before I make my final decision.

Blogeye:
No sure what you are saying. It seems like you answered your question in your 1st sentence.
I'm assuming you are against the FairTax. Do you have any suggested readings?
 
bloggeye
Comments: 291
Joined: 08/18/2006
02/12/2008 06:17:50 PM
lincoln,
When my doctor charges $100 I understand the tax is embedded. He (or she) will receive $77 and the feds will get $23. What are the embedded costs today in a $100 doctor bill?
 
lincoln
Comments: 44
Joined: 02/05/2008
02/12/2008 05:44:44 PM
Mark,
great points, I am actually into the 2nd part/chapter of FairTax: The Truth. This won't be the only source I use to determine if I'm for or against the FairTax. It appears that some of the things that you mention are addressed in this new book.

Bloggeye,
nice to meet you.
Actually from the few things I've read. The assumed 23-30% taxation rate is wrong. Many economist say that taxpayers will carry a 23% tax on new goods. However, all goods already carry and embedded cost. So the 23% assumption will actually take the place of the embedded tax.

I look forward to discussing this issue with you guys (especially as I learn more about it). I don't know where I stand on it yet. It appears there are some positives and negatives associated with it. All I know is that the IRS is too burdensome.
 
bloggeye
Comments: 291
Joined: 08/18/2006
02/12/2008 04:06:08 PM
hoosiermama, it says healthcare is taxed on the fair tax website. According to the proponents you can't start making exemptions on things like doctor's bills.

I feel like I'm beating a dead horse, but the fair tax is 30% when figured like a traditional sales tax. For example, if I buy an item that costs $130, to find out the original cost of the item you subtract the fair tax of 23% which comes out to $30. My item actually was $100. What would be a 30% sales tax on $100?



 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/12/2008 02:30:53 PM
Mark,
You bring up MANY good points. Are you saying that healthcare is taxable under this plan?

edited to add: Just reread your post and apparently it is. I was not aware of that. Thanks. Obviously, it is time for me to get off here and get to reading.

 
MarkDC
Comments: 1
Joined: 02/12/2008
02/12/2008 02:26:03 PM
Actually, Fairtax does have some great points -- if it worked.No IRS! Nothing withheld from paycheck, and a prebate to pay our taxes on necessities!

But what if Fairtax didn't work? What if, for example, half of the money it says it can collect, turns out to be uncollectable? WOuld then the fairtax have to be 46%?

And if so -- would the fairtax have to be 46% or more to make up for it?

Do you know that fairtax taxes the federal government, to pay for the federal government?

Neal Boortz wrote "The federal government itself will become a major taxpayer" (Page 148 in his Fair Tax Book,)

Tax the federal government to pay for the federal government. ??

Isn't that a bit like me, pretending I can pay myself 10,000 to cut my own grass? I can write the check, I can even deposit the check. And I can do this every day. But at the end of the month, I don't have 300,000 dollars.


Fair tax advoates want to claim the government "will become a major taxpayer" -- but it can't possibly be so. And the REASON fair tax has to pretend to tax the federal government ---they need to show, on paper, that they can collect 2.3 trillion in taxes.


So Fair tax would have to be higher than 23% to remain revenue neutral, just for this one fallacy.

Are there any other fallacies?

Fairtax can only work IF it gets people to pay 460 billion in taxes -- on their health care costs. People who get heart bypass surgery, cancer surgery -- people who are in nursing home. Famlies fighting leukemia and other expensive illnesses will get incredily hard by the "fairtax".

One family, who has a child with leukemia -- could get a 40,000 SALES tax.

One nursing home patient, who gets by on her social securty -- would get a sales tax of 25,000 a year -- plus more tax for any other medical costs.

One cancer patient, with surgery, chemo, and radiation, could have 50,000 in "sales taxes".

So you will have the absurdity of a person who is actually taxed MORE sales tax than they have income.

Therefore, one way or another -- these patients will get exemptions, either defacto exemptions -- by not paying it. Or dejure exemptions - by getting an official exemption.

EIther way, the Fairtax can't possibly collect 460 billion-dollars from these folks.

Most likely, the outcry from even attempting to tax an 80 year old stroke victim in a nursing home, would result in Congress exempting all health care cost from the "fair" tax.

Fair tax has to get 150 billion in taxes -- from people as a tax on their rent.

Fair tax has to get 150 billion by taxing people who buy new cars --- and pretend that new car sales won't drop because of the high taxes.

Fair tax has to pretend it can collet 200 billion by taxing people who buy new houses -- and pretend the huge tax on new homes wont diminish sales.

Group after group will scream bloody murder -- and get exemptions.

So with all these inevitable exemptions -- Fairtax rate would have to be 60-80%.


 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/12/2008 01:35:59 PM
I was just listening to Boortz show today on my home from the grocery store and I heard the big push, too. I heard him say something about buying extra copies of his book to pass out to friends, but hey, I am a working girl, so I guess I will have to draw the line there. I so wish Huckabee had a chance at the Republican nomination this year. I have watched many of his stump speeches and just really like him.

 
lincoln
Comments: 44
Joined: 02/05/2008
02/12/2008 01:32:03 PM
i listen to Boortz too. I decided to findout more about Fairtax b/c of the big push he's put behind this book and b/c of Huckabee. I agree with your stance on thoroughly educating ones self before making a final decision (IRS vs fair tax).

The last thing we need is more bureacracy.

Is there anyone else, in Brian's absence, that has an opinion?

 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/12/2008 01:26:07 PM
lincoln,
There has been some questions/criticism about the Fair Tax in this forum already. I don't feel like I am properly educated on it to either make a case for or against it. I'm trying to hold off on any debate until I have at least thumbed through the second book. I have a deep-rooted fantasy of someday unburdening our citizens of that beast of bureacracy, the IRS, however, I want to make sure that the Fair Tax is just as good as it sounds. I would hate to see us implement a new system if it turns out being worse than the one we had.
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/12/2008 01:03:14 PM
I think that you will be fine without reading the first. I know that there are others here interested in the Fair Tax. Even though I was somewhat familiar with it throught Boortz' radio show, brian, (who appears to be taking a little time off from this site right now) got me very interested in this with his enthusiasm.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/12/2008 12:20:07 PM
should I read the 1st book before I read the 2nd? The 2nd appears to be as the title says, "answer to the critics"
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/12/2008 12:14:38 PM
Hi Lincoln.

I have just about finished the first book. Amazon just shipped my copy of the follow-up book you have. I should get it very soon. I can't wait!
 
lincoln
Comments: 44
Joined: 02/05/2008
02/12/2008 12:10:33 PM
Hooiser
I got one of those Fair Tax books you are talking about. It is called Fair Tax: The Truth.
I got it today.
Have you read up on this topic?
 
hoosiermama
Comments: 401
Joined: 11/14/2007
02/08/2008 09:19:38 PM
Agreed. The IRS is outdated and just one big, jumbled up mess of a bureaucracy. I am intrigued with the Fair Tax plan, but, admittedly, am not knowledgable enough about it to fully support it yet. I am reading up on it, though.
 
lincoln
Comments: 44
Joined: 02/05/2008
02/08/2008 09:14:21 PM
Boortz isn't the only one pushing the Fair Tax.... John Linder and several other politicians are behind it. the IRS is outdated.
 
burnbarrel
Comments: 1
Joined: 02/08/2008
02/08/2008 08:21:29 PM
Before you just up and readily accept these people say is best for you I recommend reading the following links to get a better picture of what they are trying to make you believe.

http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/index.htm This is a Money Mag. article way back in sept. 05 about Neil boortz and his book to "explain" this concept to everyone

http://www.factcheck.org/taxes/unspinning_the_fairtax.html will lead to Factcheck.org a site that will bring to light some of the numbers tricks being used to tout this as the all American dream plan.
 
familymom
Comments: 281
Joined: 11/29/2007
02/06/2008 09:49:53 PM
I am on the fence with the Fair Tax, but there is something to consider as a plus for the tax....if purchased items were taxed then it ensures that all people in the USA are paying some taxes. This means that illegals are paying taxes when they buy groceries, etc. Anyway, that is a little something to see as a positive. After paying my taxes this year I am thinking he Fair Tax might be good...hmmm
 
lincoln
Comments: 44
Joined: 02/05/2008
02/06/2008 08:05:58 PM
CSScom, Neal Boortz is pushing his newest book on the fair tax that is supposed to go on sale this coming Tuesday. It is supposed to answer all the critics.

 
CSS4Comm4
Comments: 160
Joined: 10/09/2006
02/06/2008 05:01:28 PM
As Dennis Miller used to say: That's just my opinion. I could be wrong.
 
CSS4Comm4
Comments: 160
Joined: 10/09/2006
02/06/2008 04:58:49 PM
This all sounds great to the ultra wealthy. While removing the IRS and stopping the federal income tax deductions from my paycheck sound great, I doubt very many people reading our blogs will be looking forward to not paying corporate taxes, capital gains taxes, large gift taxes, or large estate taxes.

In addition, I doubt very many companies will actually reduce the price of their products to make up for the reduced taxes they are not paying while producing their products or services. They will just add that saving into their profit margins. You don't really think the government will make businesses lower their prices, now do you? If you do, I'd like to speak with you about some swamp land in Arizona.

The bottom line is that the ultra wealthy, large business owners, and the large land owners are pushing this "Fair Tax" to make a killing and to stop having to foot most of the tax burden while they hoard back all their income and continue to get wealthier.

And, you can dangle all the "prebates" out there like a pork chop in front of a shelter dog, but, ultimately, with 23% sales tax, the people who HAVE TO spend their paychecks or pensions to survive from week to week or month to month will be the ones who suffer in the long run.

As always, the rich will get richer and the poor will get poorer. And, the people who beat the system will continue to find ways to beat it.

Why not pass a Flat Income Tax percentage where no deductions, or write-offs, can be taken? Wouldn't that eliminate the need for the IRS? The more you make, the more you pay, but only at a flat percent.

Taxing food, medicines, and medical care would hurt the elderly, the sickly, and the poor. As Christians, don't we have an obligation to NOT do that?
<< < Prev - Next > >>