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Does America need a FairTax?
The Atlanta Journal-Constitution
U.S. Rep. John Linder of Georgia explains why he has sponsored legislation to replace the income tax with a 23-cents on the dollar sales tax. “Americans would keep their entire paycheck and have the power to choose exactly when and how much they will pay in taxes,” writes Linder. “It has always been a belief of mine that all taxes should be voluntary.”
But a former U.S. Treasury Department economist argues, simply, that the FairTax is too good to be true.
“Unless every state replaced their income taxes with their own version of the FairTax the vast majority of Americans are still going to have to file tax returns every year, keep all the records necessary for doing so and potentially suffer audits,” writes Bruce Bartlett. “For another thing, the cost of everything you buy—including many, many items not now covered by state sales taxes—is going to rise by 23 percent, the FairTax rate. This includes things like new homes and medical care. It even includes the cost of local government services other than education, which the FairTax considers to be ordinary “consumption.”
What say you?
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By Charles
April 14, 2008 7:09 PM | Link to this
HELL YES!!!!!!!!!!!!
The government is just like the school yard bully - threatening us with loss of limb with his knife unless we pay him! You take away the bully’s knife (in this case the IRS) everyone lives a much happier life.
The Fair Tax would make sure EVERYONE is paying their fair share of the tax burden. Too many people hide their income with cash (yeah, that includes the illegal deals). They’re the ones that are whining the most about the Fair Tax (yep - those who are more likely to vote a Democrat into office).
The Democrats will continue to argue the Fair Tax will hurt those in the lower and middle income brackets. They won’t tell them the truth that in fact they’ll keep more of what they have earned (and have their OWN money in their paycheck each week). Their Nazi-like tactics of scaring the uninformed voter keeps them under power.
Unfortunately, the Republican nominee will not embrace the Fair Tax. He’s not a true Conservative and won’t endorse something that would take away power from government.
By Phil
April 14, 2008 7:48 PM | Link to this
If we could get our elected officials to focus their efforts on identifying the items that we need government to provide and the most efficient means of providing them, then the taxes needed to pay for these items would be called the Fairest Tax. Now, who’s the fairest of them all? I don’t think it could be someone looking to make money off a book.
By rascal
April 14, 2008 8:24 PM | Link to this
Phil, you must be an idiot if that is the only argument against a serious proposal you can come up with. You probably live on welfare and are waiting for the government to come over and wipe you.
By gary
April 14, 2008 9:42 PM | Link to this
President Bush’s Advisory Panel on Tax Reform has rejected the FairTax proposal. The results of this panel can be found at taxreformpanel.gov., Chapter 9 of the final report. The panel found that the FairTax proposal would result in a large tax increase for the middle class (Figure 9.3). Also Box 9.2 addresses other concerns with this proposal.
By Damn the Man
April 14, 2008 9:44 PM | Link to this
P.T. Barnum said ” There’s a sucker born every minute”. The gullible suckers that think this fairytale tax will save them any money are proof that Barnum is still right.
By Eric
April 14, 2008 10:55 PM | Link to this
I don’t believe it is fair that both poor and rich people would pay the same 23% rate for a gallon of milk, etc. So there would have to be a tier of a lower rates based on income. Only then would there be a “fair” tax. Incidently, what happened to the flat income tax? That would cut out a lot of bull in the IRS code.
By Phil
April 15, 2008 6:28 AM | Link to this
rascal,
If I want your opinion, I’ll give it to you. In the meantime, if you want to hear my complete set of arguments, my book will be on sale as soon as you can afford to buy it. Good luck with that, dim wit.
By the way, I just loved the thought and deliberation that you obviously put into your feedback on the subject matter. How much education did that take. You talk like a disgruntled Linder or Loser.
By Charles
April 15, 2008 7:32 AM | Link to this
Eric,
Obviously you haven’t read the Fair Tax plan. It provides a prebate for those “less fortunate” every month. Therefore, a poor person would in essense pay NO taxes on a gallon of milk - while the person who strived to succeed in life would pay the full 23%.
What’s fair about a tier tax? I guess for someone who thinks they need to ‘stick it’ to the ‘evil’ rich it’s a good idea. In the long run you’re just hurting the little guy. Who do you think creates the jobs - and who do you think will be laid off when they can’t afford the tier tax?
By Duane
April 15, 2008 7:40 AM | Link to this
For anyone who hasn’t, I suggest they read Thomas Friedman’s “The World Is Flat”. We need to stop the short sighted thinking of those like Bartlett in this country and start doing something to take our place in the evolving world economy. Our current tax system has taken us from being a producer to just a consumer. The FairTax can remedy this, by making our exports competitive in the world markets, correcting the balance of trade and bringing jobs back to the U.S.
Mr. Bartlett, I’ve heard you don’t do anything for free so, who’s paying now?
By Tom
April 15, 2008 7:42 AM | Link to this
Don’t buy the book, even though the proceeds go to charity, read H.R. 25 summay. When will folks realize the 23% tax is not added-it’s already there now! As for the states applying FAIRTAX, some are already trying to. There is no such thing as a Fair Tax, only a fairer tax that allows you some control over a “visible” tax stem.
By Bill
April 15, 2008 7:43 AM | Link to this
Rep. Linder must have flunked math; the so-called fair tax is 30% not 23%. If something is worth a $1.00 before tax, it will sell for $1.30 after tax.
By Gail
April 15, 2008 7:53 AM | Link to this
Absolutely!!!! You misguided people actually need to read the books authored by Linder and Boortz and learn about Fair Tax rather than basing your judgment on liberal news paper articles or panel studies. Get your facts straight before you give an opinion. Take control of your lives for a change!!!!
By Bobby
April 15, 2008 7:55 AM | Link to this
The fact that Neal Boortz supports it makes it highly suspect in my book. Boortz only supports “the Rich” as he likes to refer to himself and has never been a consumer advocate. So I tend to discount the Fair Tax. Even his conservative friends aren’t supporting him (Rush, Sean Hannity).
By Tim
April 15, 2008 7:59 AM | Link to this
Clearly, Bruce Bartlett misunderstands how the Fair Tax works. Prices will NOT increase by 23% - this is fundamental to how the Fair Tax works, and why it can succeed. He needs to go back and actually read the book and the follow up book before opening is mouth again. His opinion piece is nothing more than misinformation. I can only assume that he either has an agenda to support some vestedd interests or he’s just not well read ; in either case he ought to be ashamed of writing such a misinformed and misleading piece.
By Tim
April 15, 2008 7:59 AM | Link to this
Clearly, Bruce Bartlett misunderstands how the Fair Tax works. Prices will NOT increase by 23% - this is fundamental to how the Fair Tax works, and why it can succeed. He needs to go back and actually read the book and the follow up book before opening is mouth again. His opinion piece is nothing more than misinformation. I can only assume that he either has an agenda to support some vested interests or he’s just not well read ; in either case he ought to be ashamed of writing such a misinformed and misleading piece.
By carol
April 15, 2008 8:00 AM | Link to this
There is no question that he FairTax would stimulate our economy. I am a small business owner who has a service business. I am well aware that the taxes as they currently are put a huge burden on the small business and PREVENT us from hiring employees as the taxes we would incur would shut us down. There for we only use subcontractors responsible for their own taxes.
I also hear many conversations among those in the corporate world speaking of what is best for their company BECAUSE OF TAXES. They have revealed to me that it is the TAX SYSTEM today that has them manufacturing their goods outside of the country. This means no additional jobs here. They have also spoken that if it were to change with the FairTax, they would look to bring home those jobs. Combine this with the unfair system we have on imports and exports ~ it is cheaper to bring the product INTO the country than to ship them OUT of the country.
Many of you who do realize that corporations do file their taxes and spend many dollars on how to work the tax system. What you don’t seem to notice is that eliminates revenue to create growth in a company, or eliminates dollars to reward a job well done. The dollars paid in taxes are then passed on to the consumer, by higher prices of the products you purchase with your already taxed paycheck. This creates a double tax.
The FairTax would eliminate the hidden tax and give you the full paycheck you earned.
The 23% tax is paid only on FIRST TIME retail sales and all services. (yes this will create more work for me as I am a service industry who currently doesn’t have to charge sales tax.) If you choose to shop for a used car you don’t pay tax on it as you would now.
The prebate is paid to the head of household EQUALLY up to the poverty level each month. YOU can choose to live within your means and actually make money off the government or go out and purchase the Rolex you always wanted. The fairest part of the FairTax is you finally get control of how much tax you choose to spend.
This would also make it so that every person in our country pays taxes whether the wealth was gain legally or illegally, inherited or earn, hard work or handed out.
The best part of it ALL, the government could no longer take the bribes from those evil corporations, or the evil rich as there would be NO LOOP holes to be had. HOW CAN ANYONE ARGUE WITH THIS LOGIC?
By Brian
April 15, 2008 8:08 AM | Link to this
Um, Bill. Probably been a while since you sat in a classroom but 23 cents on the dollar means that if something sells for $1.00 then it will sell for $1.23 after tax. Again, all of you people who oppose this clearly have NOT read the book and do not believe the government is in place to live our lives for us. Did JFK not challenge us to “Ask not what your country can do for you, but ask what YOU can do for your country”? Too many people today believe the government “owes” them something. I bet most of you believe that after today you will be getting a “refund”. How sad.
By Copyleft
April 15, 2008 8:13 AM | Link to this
Yes, we need to reform our tax system.
No, the Unfair Tax is not the way to do it. A consumption tax is regressive, and its faithful followers are acting like cultists when they chant, “Dissenters must be ignorant… read the book, read the book… you CAN’T disagree once the holy FairTax light shines upon you!”
News flash, folks; I HAVE read the book. It’s garbage. It ignores a lot of basic facts, glosses over others, and insists that “2+2=50” as the “simple math” that proves how wonderful an idea it is.
Boortz and Linder are (big surprise) looking for ways to help the wealthy avoid taxes on their wealth, shifting the burden onto the middle and lower classes. They pretend otherwise, and people who will wind up screwed by this plan (i.e., YOU, if you’re not rich) are being suckered into cheering for it.
Again: I HAVE read the book. So quit repeatinig that tired old line, “You just don’t understand how wonderful it is. One of us… one of us….”
By Flip
April 15, 2008 8:16 AM | Link to this
Bill wrote…. “Rep. Linder must have flunked math; the so-called fair tax is 30% not 23%. If something is worth a $1.00 before tax, it will sell for $1.30 after tax.”
No Bill, it’s YOU who flunked the math courses. A $1 product will STILL sell for $1. What is it about embedded taxes you don’t understand? FairTax simply REPLACES the already EMBEDDED (23%) taxes. Have someone read and explain H.R. 25 and the two Boortz/Linder books to you because I seriously doubt you can read and comprehend on your own.
By Lolo
April 15, 2008 8:17 AM | Link to this
We desperately need a change in the tax code and while the FAIR TAX may not be flawless, you cannot reasonably argue that it is not leaps and bounds better than our current oppressive tax system.
VIVA FAIR TAX
By John
April 15, 2008 8:23 AM | Link to this
I like the idea very much. It may never come to be because Congress will not be able to add their pork.
By Tim
April 15, 2008 8:25 AM | Link to this
CopyLeft, apparently you didn’t understand it very well :
“… looking for ways to help the wealthy avoid taxes on their wealth, …”
The current tax system DOES NOT TAX WEALTH. Read that again - it does NOT tax WEALTH. It taxes earnings.
You first point about “regressive” (rather than progressive) indicates that you are looking at this politically, not objectively. Put your politics aside and read the book again.
By Julie
April 15, 2008 8:26 AM | Link to this
Well said, Carol. I have believed in a “National Sales Tax” system since I was a little girl in the sixties and my grandfather (who I think was ahead of his time) used to say that was the only fair way to tax everyone.
By Flip
April 15, 2008 8:27 AM | Link to this
Hey Copyleft…
READING a book and UNDERSTANDING the CONCEPTS in a book are two different things. Example: Most here can read a book on quantum theory but I doubt most of us would understand it.
By FairTaxMan
April 15, 2008 8:30 AM | Link to this
Typical AJC !
Yeah, its a 23% tax, but you don’t bother to mention that imbedded taxes built into each product or service would be eliminated, and that you would get the GROSS amount of your paycheck, not to mention there would be no more annual filing of income taxes.
Through your purchasing habits, YOU control your taxation, not the Federal government.
By FairTaxMan
April 15, 2008 8:31 AM | Link to this
Typical AJC !
Yeah, its a 23% tax, but you don’t bother to mention that imbedded taxes built into each product or service would be eliminated, and that you would get the GROSS amount of your paycheck, not to mention there would be no more annual filing of income taxes.
Through your purchasing habits, YOU control your taxation, not the Federal government.
By LOLO
April 15, 2008 8:34 AM | Link to this
Don’t you just love how people call other cult followers if there is a certain logical cause or movement for change that someone belives in. This great country would not be great if all of our long-ago forefathers towed the line of the status quo.
I can’t understand why people want to maintain this awful system while they are the very ones who complain about the government and taxes all year long.
BTW, some of these status quo sloths that I have talsked to are none other than IRS employees, current and former. Go figure.
By SCY
April 15, 2008 8:37 AM | Link to this
The cost of everything you buy is NOT going to rise by 23%. This is another blatant deception. The imbeded federal income taxes that affect pricing at every level of production and distribution would be removed with implementation of the FairTax.
To argue otherwise is either intentional disinformation or ignorance.
By Eye
April 15, 2008 8:43 AM | Link to this
Yes prebate with the assumption of poverty as defined in the book. This means you get a bit if you are a family of 4 with a total income of $25,000 or less. That is not poverty. That is abject poverty! People who spend their entire paycheck, lower and middle class, will be paying the majority of the taxes and rich people who invest the majority of their income will pay next to nothing relatively speaking. And what about the people who have retired and live off their life savings? Are you going to tax them again for everything they purchase with their already taxed money? Consumption tax can work and is a great idea, just not the way the stupid book proposes.
By jeff
April 15, 2008 8:43 AM | Link to this
The reason you will never see the fairtax ever go in to effect is not about money, it is about control,, The government can not control you unless they tax you at the point of earnings. They get to know where you live, who you work for and how much you make and what you spend your money on. A fairtax would take away that control and the gov will never allow that. Most people that argue about the tax do not know how the program works. The 23% sales tax is already there, it is just inbedded in the process.
By Eye
April 15, 2008 8:44 AM | Link to this
Yes prebate with the assumption of poverty as defined in the book. This means you get a bit if you are a family of 4 with a total income of $25,000 or less. That is not poverty. That is abject poverty! People who spend their entire paycheck, lower and middle class, will be paying the majority of the taxes and rich people who invest the majority of their income will pay next to nothing relatively speaking. And what about the people who have retired and live off their life savings? Are you going to tax them again for everything they purchase with their already taxed money? Consumption tax can work and is a great idea, just not the way the stupid book proposes.
By Go Fish
April 15, 2008 8:44 AM | Link to this
I think Bruce Bartlett needs to go back to school and retake all his math classes. It would also help Mr. Bartlett to read and study the subject before he writes an article on the Fair Tax. We need the Fair Tax passed now or we will become a 3rd or 4th class country.
By Todd
April 15, 2008 8:47 AM | Link to this
Bill stated: “Rep. Linder must have flunked math; the so-called fair tax is 30% not 23%. If something is worth a $1.00 before tax, it will sell for $1.30 after tax.”
Well, you have obviously been “eduhmuhcated” in the Georgia public school system and never been involved in business, law, or accounting.The 23% tax on $1.00 would be $1.30. A 30% tax would be $1.43.
By GaLiberal
April 15, 2008 8:47 AM | Link to this
Simple minds can only understand simple solutions to complex problems. That explains why the Rethuglicon bobble-heads like Linder keep pushing this like so much snake oil. The fact is that Fair Tax isn’t “fair” at all. With a 23% Fed consumption tax on everything - including things not currently taxed - it would be a net increase in individual taxes. Further, it is estimated the effective tax rate would be effectively more like 40% because the tax would be paid during the entire production cycle of a product. This is on top of any sales taxes you would pay to the state for the same product or service.
Another huge problem with the unFair Tax is its strong regressive nature. People who can least afford to pay the tax will pay a larger percentage of their income for necessities like food, gas, heat, clothing, etc. The uberrich will reap a windfall from this because they will pay less tax as a percentage of their income. That concept is too much for the Rethuglicon bobble-head bootlickers to understand. After all, the Rethuglicons say, poor people are poor because they want to be poor.
Of course, the special interests are going to get their exceptions to the tax all in the name of creating jobs or protecting shareholders or just because it would be too much for them to pay. So you generate a bunch of complex loopholes for whatever reason can be justified and your back to the problem of an overly complex, unfair system. The IRS would not go away, but just change from compliance with income tax laws to compliance with sales tax laws. I can just see a huge black market developing on “untax” goods. A perfect opening for organized crime.
This even consider what would happen when the economy tanks and people don’t buy cars or housing prices nosedive drying up tax revenues. Or what it would do to our ability to export goods and services. Or a host of other bad things this will create. Simple minds just want simple solutions to complex problems.
When you vote Rethuglicon, you vote against your own best interests. And John Linder and the so-called Fair Tax is living proof.
By tom ga hunter
April 15, 2008 8:51 AM | Link to this
DA,, our problem is OUT OF CONTROL SPENDING the fair tax does not take the problem on. Read Dough Fife’s book if you want to see how easy it is to bend the truth.
By Chief Wiggum
April 15, 2008 8:54 AM | Link to this
Yes, I support the FairTax. I think far too many comments here show folks who really don’t know what the FairTax really is, they don’t understand the “prebate”, they don’t understand the already embedded taxes, they don’t understand how the current income tax rates are calculated.
Let’s do a simple, hypothetical math problem. You make $100,000 per year. Let’s imagine that the IRS taxes you at 25% on that amount, which means for your $100,000 income, you must pay $25,000 in taxes. That means you take home $75,000. If we follow those who keep whining that the FairTax is actually 30-some percent, and not 23 percent, can they look at the above, and see how it works? We pay income tax on our gross income, not our net income. The FairTax is calculated on our gross income, not our net income…or rather, on the gross price of a product, not the net.
We spend billions every year doing our taxes, the IRS spends billions collecting our taxes. Wasteful spending. It’s time to simplify.
By BlueMoon
April 15, 2008 8:57 AM | Link to this
It’s amazing how all of the people on here for the FairTax are putting together rational arguments and everyone else is saying we’ll pay more for products and it’s a regressive tax.
Read the book people, educate yourselves and quit allowing uninformed people what is going on. The FairTax is the ONLY way to go.
Products would still be sold at the same price becuase embedded taxes are stripped away. Payroll taxes are gone so we can bring jobs home from overseas. MANY corporations are eyeing this already IF it ever came to fruition. And let’s not forget the “prebate” that lower income families receive to buy necessities like groceries. It’s time to wake up, get on the Fair Tax website and make your congressman listen to real facts.
By pdpmishap
April 15, 2008 8:59 AM | Link to this
To Brian and Bill,
Let’s say there is a $100 item before and after the tax change…$23 of that is taxes under FairTax.
$23/$100 x 100 = 30% of the total item price is taxes. Now if you’re talking about how much your buying power is reduced, it is 23%…the same as the avg income tax reduction.
Linder didn’t fail math…he actually aced marketing. He talks about $.23 on the dollar…not $.23 on the $.77 which it actually is. He also doesn’t refer to it as $.23 of every dollar.
“Fair” or not, anytime you propose a massive change in tax liability you will disenfranchise many. The middle class will likely be hit the hardest. That’s not including the millions of tax professionals and IRS employees that wouldn’t enjoy a sudden change in profession. These people vote and would likely laden any proposal w/ ridiculous provisions to maintain their jobs.
Don’t forget, the wealthy have the ability to skip borders and maintain homes outside the country while maintaining income. Suddenly a home in Mexico is 30% cheaper and everything they buy there is cheaper as well. If you ever wanted to see the rise of the Mexican expatriate. Much of the wealthy’s income is in the form of long term dividends and reduced tax activity which would be completely avoided under “Fair Tax”. Coupled with their ability to completely avoid taxation by living outside the US
I make about double the median household in Georgia and as a single male w/o a house and four decades from retirement, I get taxed at probably one of the highest marginal rates around w/ minimal services for my money. This plan would probably benefit me significantly but that doesn’t mean I don’t see the obvious flaws and redistributive effects.
By Chief Wiggum
April 15, 2008 9:03 AM | Link to this
Hint: When idiots come here and use stupid words like “rethuglicon” over and over, you should consider the source to be a pathetic troll. Some people are conditioned to use such phrases…perhaps it was the electric shock therapy.
To the idiot troll…perhaps you need to do some research on a part of the FairTax called the “prebate”. Go do that, and come back and tell us how regressive the FairTax is. Or, just ignore it, ramble, and re-hash the phrases your masters have told you to use. Good troll!
By BlueMoon
April 15, 2008 9:06 AM | Link to this
GALIBERAL
Obviously you’re a liberal because you didn’t back anything you said up with facts. You obviously don’t know anything about embedded taxes and how the Fair Tax treats “used” items for sale. And obviously reading comprehension was never your friend. Try reading both books on the Fair Tax and then come on here and actually try to state a valid, fair response to it. No educated person can look at this situation and state that our current tax system is better than the FairTax.
By Jason
April 15, 2008 9:07 AM | Link to this
Yes we need the FairTax. It is a tax system designed by economists, not politicians. Every year, I have to spend $50 to buy a program to help me check that my company submit the correct amount of tax to the IRS. If I don’t want to do that I can pay a one of a number of large companies 3-10 times that amount to check my taxes. And if I get it wrong because somebody else made a mistake, I get punished with fines, interest, and possible jail time. This is stupid. Everyone has to pay taxes for the system to work. Let’s stop making it so complicated. The FairTax makes collection easy and eliminates this “crazy double-check someone else’s work” idea. The current system is broken. If not the FairTax, then what? We definitely cannot keep going with the current system.
By Harry S.
April 15, 2008 9:12 AM | Link to this
Most working Americans, (teachers, policemen, nurses, clerks, firemen, construction workers, ect.) don’t pay anywhere near 23% in federal income tax. About 10% would be more accurate for a family of four with a mortgage and around $100,000 income. It WILL tax doctor/hospital visits, telephone bills, internet and cable TV bills and basically all services that are not presently taxed. It WILL encourage a huge black market for cash purchases. It WILL have every taxpayer waiting for a monthly government check. It WILL be added to all existing and future state and local taxes. It WILL be a huge tax increase for the middle class and working poor who spend at least 90% of their income. It WILL be a big tax cut for millionaires who only spend a small percentage of their income.
By bubbatech02
April 15, 2008 9:13 AM | Link to this
What everyone does not talk about is the fact that with the fairtax, the IRS essentially goes away. The IRS is a multi-billion dollar burden on the economy (i.e. us the taxpayers). Further, we will not have to spend time (i.e. money) preparing and filing our tax returns. No loopholes for corporate fat cats and the rich to get around.
If you think the current system is better, think about how the rich make most of their money. Its not by salary, which is taxed at rates above 30% in higher economic brackets. No, most get their money through dividends, which is taxed at a lower rate (15%), which means that if someone is wealthy, they may end up paying less tax than those of the lowest income bracket (other than the poor). Under fair tax, the rich cant play that game. They consume, they pay, regardless of the source of their money. I would hope that the liberal class welfare addicts would love that.
By Chief Wiggum
April 15, 2008 9:18 AM | Link to this
Okay, pdpmishap, let’s do some math, okay?
First off, I am going to ignore deductions and exemptions, and also the prebate part of the FairTax. Just making a general point here.
Let’s pretend you make $100,000 (taxable), and in theory, you are taxed at 28%. That will leave you with $72,000 to spend.
Under the current system, you can purchase $72,000 worth of goods and services with your $100,000. Now, with the FairTax system, you may want to call it a 30+% tax, but you will be able to purchase $77,000 worth of goods and services for your $100,000. You actually have the $100,000 to spend, and you have to stroke checks for $100,000. With the absolute worst-case scenario (where I don’t even consider any reduction in embedded taxes already there), that $100,000 buys you $5,000 more than it does under the current system.
In regard to deductions and exemptions, and the Prebate. They don’t exactly cancel one another out, but they come close. Point is, you would do no worse than you do today. For those who make less, the Prebate is still the same amount, which is a greater assist, percentage-wise, for the income they make.
By brad webb
April 15, 2008 9:18 AM | Link to this
The present tax system is causing companies to go overseass and thereby bankrupting the country. We are taxed to death. Many pay nothing despite taking advantage of our services. Just think of all the foreigners who come here and take from the economy and leave very little in return. The Fair Tax is the best answer to come along in years.
By john
April 15, 2008 9:20 AM | Link to this
Just think… no more I.R.S. No more tax forms. No more potential audits. No more looking to see if all your reciepts are there. Most importantly ALL would have to pay thier fair share. You can adjust how much tax you pay by looking for bargains and buying in bulk. Also the poor would get a credit so the tax they pay would be reimbursed. I think it’s a win-win situation. Politicians want the “sure thing”. That is why they are afraid of implementing a fair tax plan. We are the bosses of the politicians. We control America.
By TJW
April 15, 2008 9:21 AM | Link to this
Go Carol!
Look at it this way, the current Tax code, which I believe consists of about a 3 foot high stack of books, currently abuses the middle class as it is. The Lower class ends up owning little, the middle class ends up owing 35-40%, and the Upper Class has so many loop holes added to protect the rich that they end up being taxed on only a fraction of their income.
Even if prices went up 23%, I’m bringing home 35%+ more a year… Yes Please!
The added benefit is that all of the undocumented workers lose the under-the-table advantage, since they get taxed on those American Dollars when they get spent in America!
Yes, The Fair Tax system may be perfect, but consider the monstrosity thats currently in place, and the people who passed the bills to make it that monstrosity… I guantee you they didn’t have the lower and middle classes best interests at heart…
By joyce
April 15, 2008 9:23 AM | Link to this
LEAVE THE TAX SITUATION THE WAY IT IS. TWENTY-THREE CENTS/DOLLAR WILL BE A TERRIBLE HARDSHIP ON THE POOR AND ELDERLY ON FIXED INCOME. GREED AND DISREGARD FOR OTHERS IS DRIVING THIS ISSUE.
By Athens
April 15, 2008 9:24 AM | Link to this
If the tax system was REALLY Fair and EVERYONE paid there FAIR SHARE we would not be talking about this PROBLEM. EXCEPT on how to spend it WISELY and FAIRLY. “Fair Tax ” Linder writes— “It has always been a belief of mine that all taxes should be voluntary.” THEN NOONE WOULD PAY.
By kitty
April 15, 2008 9:24 AM | Link to this
Is any one bothering to consider who will actually pass the law? CONGRESS. By the time lobbyists get through there will be enough holes in this thing to drive a jet through with the middle class taking an even bigger hit.
and I haven’t even started on all the unintended consequences that Boortz’s book…you would think it was the Bible the way the fairytale taxers go on about it…leave out you people don’t even want to think about. Well, I have had ENOUGH of policies and actions by our government that don’t think things through. That is how we got messed up in Iraq. NO THANK YOU.
By FarLeftLoons
April 15, 2008 9:25 AM | Link to this
Whether or not we need a “FairTax”, we definitely need a “fair tax”. This nonsense about folks who collect welfare, and yet can afford a new car every year (while I can’t), is ridiculous.
By Tom Oliver
April 15, 2008 9:25 AM | Link to this
It is so obvious that Bruce Bartlett doesn’t have a clue about Fair Tax. He says almost no one understands and he is among them. He talks about the cost of administration of the Fair Tax. What does he thing the cost of the IRS is and the overall cost of our federal tax code? In the same article he says that the “cost of everything we buy is going to rise by 23%” (false) and then in his comment about the prebate, he talks about prices falling by 23%. See John Linder’s column and, more importantly, the book Mr. Bartlett. It is revenue neutral as far as tax revenue in the “above ground” economy but maybe as or more importantly consider the tax revenues raised from the underground economy of illegal aliens, drug dealers, etc., etc. No small amount of extra revenue there that is now uncollected. Proponents could go on about the many benefits such as the reversal of outsourced manufacturing but opponents or nay sayers need to read the book(s) first to have an intelligent conversation.
By Tom Oliver
April 15, 2008 9:25 AM | Link to this
It is so obvious that Bruce Bartlett doesn’t have a clue about Fair Tax. He says almost no one understands and he is among them. He talks about the cost of administration of the Fair Tax. What does he thing the cost of the IRS is and the overall cost of our federal tax code? In the same article he says that the “cost of everything we buy is going to rise by 23%” (false) and then in his comment about the prebate, he talks about prices falling by 23%. See John Linder’s column and, more importantly, the book Mr. Bartlett. It is revenue neutral as far as tax revenue in the “above ground” economy but maybe as or more importantly consider the tax revenues raised from the underground economy of illegal aliens, drug dealers, etc., etc. No small amount of extra revenue there that is now uncollected. Proponents could go on about the many benefits such as the reversal of outsourced manufacturing but opponents or nay sayers need to read the book(s) first to have an intelligent conversation.
By kimmie
April 15, 2008 9:26 AM | Link to this
heck yeah it would at least make all the illegal workers pay!!!!!!!!!!!!! I dont mind paying but they should pay also!!!!!!!!!!!!!
By kimmie
April 15, 2008 9:27 AM | Link to this
heck yeah it would at least make all the illegal workers pay!!!!!!!!!!!!! I dont mind paying but they should pay also!!!!!!!!!!!!!
By kimmie
April 15, 2008 9:27 AM | Link to this
heck yeah it would at least make all the illegal workers pay!!!!!!!!!!!!! I dont mind paying but they should pay also!!!!!!!!!!!!!
By zeke
April 15, 2008 9:28 AM | Link to this
HELL YES!!!
Why don’t you commie nuts explain the full proposal, not keep spouting that everything will cost 23% more, which is not correct! When all the hidden taxes that are added into the prices of everything we buy is reduced to zero (0), there is a wash in the tax paid. However, individuals will not have to file tax returns under the fear of audit or confiscation of property or jail time! The lower income earners, and, those who don’t work will actually receive money from the government. There will be no more fica taxes confiscated from your paycheck! If you are in the 15% tax brascket, you will actually get 22.65% more of your hard earned paycheck. If you are in the 25% tax bracket, you will actually get 32.65% more of your hard earned paycheck! In short! If you earn $1000 per week, your check will be $1000, not $650, $700 or $750! What a unique circumstance!
By Chief Wiggum
April 15, 2008 9:32 AM | Link to this
Joyce:
Please read up on the FairTax. This most certainly will NOT be a hardship on the poor. If you aren’t aware of it, that’s okay, but there is something called a “prebate”. Up to a certain amount ($27,000 income for a family of 4, for instance), there will be a complete rebate of all FairTax paid.
Just do a google search on “prebate”, and for crying out loud, TURN OFF THE CAPS LOCK! You look like a freaking n00b!!!
By Tom
April 15, 2008 9:33 AM | Link to this
Remember this, wackos of FairTax-dom: Mitt Romney, widely praised among conservatives for his business/economic wisdom, was not in favor of the Fair Tax. Why? Psst, he knew it wouldn’t work.
By JustMe
April 15, 2008 9:38 AM | Link to this
Yes, we need fair taxation, but this is not the “FairTax”. The “FairTax” is a wolf in sheeps clothing promoted by the wealthy to fool everyone else.
When the tax law/codes were first written, even they recognized that the more wealthy could afford to pay more in taxes. That is why there are tables in your tax book to look up how much taxes you pay per your income. The less you make, the less percentage you pay.
To make everyone pay the same percentage will create an unfair burden on the poor.
Just think for a minute (and I know that the Boortz-type will have difficultly doing this)…. If you make $15,000 and pay the same %10 as someone else making $150,000, then you will only have $13,500 left to live on compared to the other person that will have $135,000 left to live on. Is that fair at all? You, with only $13,500 left, will likely not be able to live while the person with $135,000 will still be more than comfortable. That measily $1,500 means a heck of a lot more to you than the $15,000 means to the other person. How is that fair?
The “FairTax” needs to be snuffed out completely. Don’t be fooled.
While I am in favor of stopping corruption and loop holes in the tax system, we do need the sliding scale and not a flat tax aka “FairTax.”
By Pat
April 15, 2008 9:38 AM | Link to this
Most people make comments without bothering to learn about the Fairfax. How can you comment on something you know nothing about? Make an informed decision people. Wouldn’t you like to decide what you are being taxed on or would you rather the government decide that for you?
Also, why would you want rich and poor to pay a different percentage? Is it fair to punish those who took the time to better themselves? I paid my own way through college and I didn’t have the benefit of using the Hope scholarship.
Our current system pushes businesses outside the U.S. Take a look at how well Ireland is doing. They seem to grasp the idea that businesses will flock to a lower tax area.
By pdpmishap
April 15, 2008 9:38 AM | Link to this
Chief Wiggum,
I’m not under any assumption that I would do worse. I would likely do better. I don’t own a home or have any dependents and I save over 25% of my gross income(meaning I spend below my means). Counting state and FICA, I’m looking at 29% of my income goes to taxes right now. I don’t qualify for SS for another 40 years…long after its collapse.
That doesn’t change the mechanics I mentioned above. I clearly included purchasing power is reduced the same under Fair Tax on the average. That means someone else would be dramatically increasing their tax burden to make up for where I am saving.
Linder’s Joe Millionaire buying a yacht example would actually demonstrate a huge flaw in the Fair Tax. What’s to keep Joe Millionaire from buying/registering his yacht outside the country? Given the # of tax shelters the rich already take advantage of, is anyone to believe they wouldn’t take advantage of international shopping to buy 30% more yacht, 30% more summer home, etc? The greater the incentive to save money, the more likely they would do it. 23/30% sounds like a mighty fine reason. They would remove the 15% tax rate on long-term investments(where most wealthy people make their money) and have a 0% effective rate if they lived outside the US.
The issue w/ the Fair Tax is that is minimizes the changes in behavior. Drugs would no longer be smuggled across the border…it’d be ipods and flat panel tv’s.
By Dave
April 15, 2008 9:41 AM | Link to this
The people who oppose the Fair Tax want to feed the class warfare and seek to divide the country and drive out more jobs.
The opponents of the Fair Tax love political corruption and love to see how lobbyists control our government. They want our government to collapse and want a socialist/communist utopia to exist where they will be the elites.
By Wee Willy
April 15, 2008 9:43 AM | Link to this
At first I thought this was funny…then I realized the awful truth of it. Be sure to read all the way to the end!
Tax his land, Tax his bed, Tax the table At which he’s fed.
Tax his tractor, Tax his mule, Teach him taxes Are the rule.
Tax his cow, Tax his goat, Tax his pants, Tax his coat.
Tax his ties, Tax his shirt, Tax his work, Tax his dirt.
Tax his tobacco, Tax his drink, Tax him if he Tries to think.
Tax his cigars, Tax his beers, If he cries, then Tax his tears.
Tax his car, Tax his gas, Find other ways To tax his a*
Tax all he has Then let him know That you won’t be done Till he has no dough.
When he screams and hollers, Then tax him some more, Tax him till He’s good and sore.
Then tax his coffin, Tax his grave, Tax the sod in Which he’s laid.
Put these words upon his tomb, ’ Taxes drove me to my doom…’
When he’s gone, Do not relax, Its time to apply The inheritance tax.
Accounts Receivable Tax Building Permit Tax CDL license Tax Cigarette Tax Corporate Income Tax Dog License Tax Excise Taxes Federal Income Tax Federal Unemployment Tax (FUTA) Fishing License Tax Food License Tax Fuel Permit Tax Gasoline Tax (42 cents per gallon) Gross Receipts Tax Hunting License Tax Inheritance Tax Inventory Tax IRS Interest Charges IRS Penalties (tax on top of tax) Liquor Tax Luxury Taxes Marriage License Tax Medicare Tax Personal Property Tax Property Tax Real Estate Tax Service Charge Tax Social Security Tax Road Usage Tax Sales Tax Recreational Vehicle Tax School Tax State Income Tax State Unemployment Tax (SUTA) Telephone Federal Excise Tax Telephone Federal Universal Service Fee Tax Telephone Federal, State and Local Surcharge Taxes Telephone Minimum Usage Surcharge Tax Telephone Recurring and Non-recurring Charges Tax Telephone State and Local Tax Telephone Usage Charge Tax Utility Taxes Vehicle License Registration Tax Vehicle Sales Tax Watercraft Registration Tax Well Permit Tax Workers Compensation Tax
STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
What the hell happened? Can you spell ‘politicians!’
And I still have to ‘press 1’ for English.
And YOU are worried about 23% to replace all of this?
By no_irs
April 15, 2008 9:43 AM | Link to this
Think of it this way, if one of the poor or elderly happen to hit on one the lottery tickets they will buy with the prebate, under the Fair Tax, they get the whole jackpot: No sharing with the Feds.
By J Moore
April 15, 2008 9:44 AM | Link to this
It is too bad people will not take an investigative look at our wonderful Federal Tax Code. As I recall, the Income Tax was disguised by the socialists as a flat 1/2% tax and even then on a limited tax basis. Everyone paid the same rate; however, the total tax would be more for those with higher income. The concept that a percentage of $10,000 is much less that the same percentage on $100,000 is not good enough for socialists today. Now we must penalize people who actually get an education and get a “real” job as opposed to getting high and having babies at 15. Do you folks realize that about 50 percent of the population pay no taxes at all except SS/MC? And some socialists like Cynthia Tucker and Jay Bookman want to let them be exempt from that also. Meanwhile, the rest of us “slaves” pay for their entitlements, et al. This is fair? Maybe to the socialists; but, not to me. This country is in deep trouble because there is a large segment of the population that always has their hands out instead of putting their hands to the plow and getting to work.
By Brandon
April 15, 2008 9:46 AM | Link to this
Quoted from Eric. “I don’t believe it is fair that both poor and rich people would pay the same 23% rate for a gallon of milk, etc. So there would have to be a tier of a lower rates based on income. “
And that sums up the problem with the current tax code. People have no idea what ‘fair’ means!! It is absolutely fair that everyone pays the same rate. That’s basically the definition of fair!! The difference is made up in the fact that rich people people spend much more money than poor people and will pay more tax. But paying the same rate is what makes it fair!!
And FWIW, the proposal I read about fair tax included a tax rebate for the poverty level people anyway. So Big Brother can still play his part.
Think about the gov’t tax savings not having to pay for the entire IRS dept!!
By Wee Willy
April 15, 2008 9:50 AM | Link to this
This is from an IRS employee:
Taxes under Clinton 1999 Taxes under Bush 2008 Single making 30K - tax $8,400 Single making 30K - tax $4,500
Single making 50K - tax $14,000 Single making 50K - tax $12,500 Single making 75K - tax $23,250 Single making 75K - tax $18,750 Married making 60K - tax $16,800 Married making 60K - tax $9,000 Married making 75K - tax $21,000 Married making 75K - tax $18,750 Married making 125K - tax $38,750 Married making 125K - tax $31,250
If you want to know just how effective the mainstream media is, it is amazing how many people that fall into the categories above think Bush is screwing them and Bill Clinton was the greatest President ever. If any democrat is elected, ALL of them say they will repeal the Bush tax cuts and a good portion of the people that fall into the categories above can’t wait for it to happen. This is like the movie the Sting with Paul Newman, you scam somebody out of some money and they don’t even know what happened. Now this is effective (maybe not honest) marketing or maybe a better word is brain washing.
I assure you that the Dems are planning the largest tax increase since WWII by letting the “Bush” tax cuts expire. Both leading candidates for pres have already gone on record as saying so.
WAKE UP AMERICA!!!!
By mrk
April 15, 2008 9:53 AM | Link to this
First: Our tax system is already fair. The more you make, the more tax you pay (no, it is not perfect and it could be improved)
Second: The so called “fair tax” really is a distribution tax. You pay taxes on what you spend. So, if you make two million dollars a year, you pay taxes on what you spend not what you make. If you make 30,000 a year (like say a teacher) you pay the same tax. The only difference is that the rich guy pays taxes on luxery items that he can afford. Sounds fair, you say. The rich guy deserves it. Well, 80% of what you get in life is who you know, not what you know. So, good hard working people (ok, and bad lazy people) will have a larger % (percentage) of their salary going to taxes. Where as the rich, 80% of which don’t work any harder of us, will pay less % of their salary to taxes. If you plan on winning the lottery or coming up with a great invention, this is for you. If you are the average American, you don’t want to change the system.
Lastly, Government budgets are very hard to manage based on sales. Spending is so up and down, that programs would be budgeted from year to year which would lead to less productivity (yes, I know it’s hard to imagine) from our gov’t. What we have in place just needs to be tweaked a bit.
Important: I’ve never seen a middle class person or poor person advocate for the “fair” tax. Why is that?
I have seen those in the upper class advocate for the fair tax. Why is that?
By Filster
April 15, 2008 9:55 AM | Link to this
I support the idea of fair tax, but like anything else it needs some tweaking. First, though everyone would pay the 23% tax upfront, the rebates should be tiered to certain cut off points. For example, a family of 4 with a gross income of, say $38,000 gets a 8% monthly rebate (just pulling numbers out of the air for an example). And like ome have argued, look at your pay stub, take all the withholding taxes and add it back into your paycheck. If you divide, you’ll find out what percentage you are already paying, only without withholding, you get to decide what to buy, etc. I think overall, on average, a family which spends conservatively will find itself with more income. So what would you rather have, more disposable income each month, or a rebate of that interest free loan you’ve been giving those yahoos in D.C? As far as the rich vs. poor argument, sure, the wealthy will always figures ways to beat the system. Always have, always will. Accept that littel truism. The question you should ask yourself is whether the withholding added back into your paycheck and leaving the buying decisions up to you, will leave you better off or not.
By Chief Wiggum
April 15, 2008 9:56 AM | Link to this
JustMe:
I know you haven’t read much about the FairTax, based on your example. Please do a google search on something like “fairtax prebate”. Someone who makes $15,000 per year isn’t going to be paying any taxes under this plan either.
You’re caught up in an ignorant socialist concept anyway, talking about how taxes need to be based on what we can AFFORD to pay. No, they do NOT. They need to be based on what is needed to run a minimal government, and someone who makes 4 times as much as me surely does not use 4 times as much government services as I do. But they probably pay 10 times the tax that I do.
So yeah, JustMe, I guess I am the “Boortz type” that actually UNDERSTANDS something about the FairTax, which you showed you did NOT, when you failed to understand the prebate, and how someone making a lower income isn’t going to be paying anything in either case. Please….learn something before you open your mouth. I’ve seen you around other blog, and it’s obvious you’re a pathetic entitlement leftie.
By J
April 15, 2008 9:59 AM | Link to this
If you read the book you would know that the costs of products will not go up because all of these extra costs are ALREADY built into the price. You are already paying this “extra 23 percent” and the sales tax, and income tax. Fair Tax rules! Quit taking my money, govt!! Tax the consumers not the producers.
By Get it Right
April 15, 2008 10:02 AM | Link to this
Stick to the facts. Mr. Bartlett can’t seem to understand that.
FairTax replaces the embedded income tax already in a product. If it costs $1 today, then it would cost $1 after FairTax.
Everyone gets a Prebate that essentially pays the FairTax on the basic necessities. This has the effect of eliminating the tax paid by lower income people - just like we have today.
The richest people don’t pay much income tax today because they have tax shelters and other ways to keep them from showing “income”. The FairTax is collected when money is spent. If Joe Millionaire buys that brand new $50,000 Lexus, then he pays the 23% tax. If Joe Sixpack buys a used $1000 beater, he doesn’t pay the FairTax.
Bottom line - and it’s really about the bottom line - read the book and get the facts.
By Chief Wiggum
April 15, 2008 10:02 AM | Link to this
To the people who whine and complain, saying it’s unfair that people pay the same tax rate. Grow up.
Honestly, it’s still pretty ridiculous that someone who makes 4 times what I make, would even need to pay 4 times as much in taxes. Do they use 4 times the amount of government services that I do? I seriously doubt it! And under the current system, they probably pay 5-6 times as much as I do.
Plus…the FairTax has a “prebate” included. Low income people pay no taxes under either plan. Middle income earners will get at least half of their FairTax that they pay back as a prebate. The system is still plenty “progressive” enough for you socialists.
By lovelyliz
April 15, 2008 10:04 AM | Link to this
The devil is in the details
In my experience, when a politician promises a fair fix, in most cases, it’s fair only to said politicians $$$$$ constituents
To me a fair tax sounds more like this: After the standand deductions, all income is taxed at the same rate. Note this means all income and not just income earned by working and money spent on brand, spanking new stuff.
Plus nothing is being said about changing the payroll taxes.
By Just Nasty and Mean
April 15, 2008 10:07 AM | Link to this
The most important element of the FairTax is that it takes the tax code away from the politicians and puts it back into the hands of the citizenry.
Most taxpayers are sick and tired of politicians using the tax code as leverage to raise campaign funds in exchange for favorable tax treatment.
If you bother to read the ACTUAL Linder bill, you will learn the 23% REPLACES embedded taxes currently hidden in the price of Everything. and is NOT added to existing prices.
Why not replace our current tax code that virtually everybody (But Bruce Bartlett) thinks is a laughable abomination. No other developed country on the planet spends more completing taxes than the USA.
Let’s throw out this anchor dragging our economy into oblivion and take back control of our tax system.
By b
April 15, 2008 10:15 AM | Link to this
First of all, learn math. 23/100100=23%, not 30%. If you want to claim that it’s a 30% tax you need to say 23/77100=29.9%.
Secondly, as much as I dislike to agree with the republican majority on this blog, the current tax system is incredibly flawed. The way the tax code is set up discourages hard work and responsibility, and encourages debt, irresponsability, and general laziness. It propogates our society’s attitude that the government owes us something for simply having the good fortune to be born here. America is the land of opportunity, not opportunism. If we would all shift our paradigm and start working for ourselves and for our potential, not trying to find ways to scam free money out of Uncle Sam, the results would be amazing and the USA would really be the greatest country on Earth.
By Art Laffer
April 15, 2008 10:15 AM | Link to this
The argument for supply-side economics was that taxing income discourages people from earning income, and by lowering tax rates, you provide more incentive for people to earn, therefore, income goes up, and overall tax receipts go up. There is evidence that this is still true with the Bush tax cuts, however, the problem has been that the government spending has outpaced the increased tax receipts.
The Fair Tax would be a tax on consumption, and it would drive people to consume less and save more. Maybe this would be good in the long run, but in the short run, it would be disastrous for the economy. This is why the National Retail Federation is opposed to the Fair Tax. McCain is also opposed to the Fair Tax. It’s ridiculous that AJC keeps this issue alive. Go watch Ben Stein’s explanation in Ferris Bueller if you still don’t get it.
By Larry Kudlow
April 15, 2008 10:23 AM | Link to this
KUDLOW: You talk about reform the code. Are we talking Huckabee’s fair tax? The national sales tax? Are you talking about a Steve Forbes-type flat tax? Fred Thompson’s come out for a quasi flat tax. Which direction do you want to move on that tax reform?
Sen. McCAIN: Larry, I want–I want to convene a commission with Alan Greenspan on it and you–I’m sure that it’ll be a very calm and unemotional gathering with you there…
KUDLOW: (Laughs)
Sen. McCAIN: …and have that commission report out their recommendations but have a provision like the base closing commission, that Congress within 60 days has to vote up or down. Up or down. You know, we had a very good tax reform commission that reported out a year and a half ago, and you know what happened to that. There’s got to be some teeth in it.
By the way, on the fair tax, I suggest before someone embraces that, I’d like for them to read a number of the articles that are by noted economists, especially in The Wall Street Journal. The parameters of that and the outcome of it, I frank–I think, frankly, should give us all great concern.
KUDLOW: All right, so scratch the fair tax. But let me just come back to the other. You’re going to call for another tax reform commission. I mean, with all respect, isn’t that a little bit of a cop-out? We’ve had a lot of these commissions down through the years.
By lovelyliz
April 15, 2008 10:29 AM | Link to this
Would the Fair Tax be fair to someone who doesn’t pay taxes on the 2 year old Bentley they are driving and to the person paying 23% (+ all the lcoal/state taxes, assuming that the fair tax rate would ony be 23%) on their new Hyundai Elantra?
By steve
April 15, 2008 10:34 AM | Link to this
I MIGHT go for the Fair Tax if it included a LIVING WAGE so every citizen working 40 hours a week could afford decent housing, insurance, retirement, and a good lifestyle for their family.
By Political Mongrel
April 15, 2008 10:36 AM | Link to this
If you read the Boortz and Linder books carefully, you realize (a) in spite of what they tell you, they can’t do arithmetic (b) they distort the effects of their system repeatedly (c) the middle class will take up most of the tax burden (d) the upper income bracket will save a ton in taxes (e) the Prebate system will require a national ID system that tracks your every purchase (f) the administration of the prebate system will be an unbelieveably expensive nightmare with tremendous potential for fraud and abuse and again (g) Boortz and Linder can’t do arithmetic.
In spite of Boortz’s ridiculous effort to disguise it, the tax is 30%, not 23% as he says. We teach children the difference between discount rates and taxe rates in school. Somebody should have taught him.
You owe it to yourself to read http://taxreformpanel.gov/final-report/TaxReform_Ch9.pdf for real criticism of this idea. The FairTax is just another boneheaded idea that doesn’t work out numerically. Sure, the present tax system is an abomination, but we need to replace it with something that works, not just anything.
By Fairly Odd Tax
April 15, 2008 10:42 AM | Link to this
My latest book, to be published soon, will cover the topics of fair taxes and who should (versus is) paying them. The subject is very complex since it delves into the complexities of Profit and Loss statements, EBITDA, the impact of stock options on shareholders, global labor markets, hidden expenses, the truth about taxes, off balance sheet transactions, golden parachutes for the Corporate Upper Class, etc. This is not a book for the mathematically challenged or for people unwilling to invest the necessary time in a thorough study of the subject matter. For example, Chapter 51.5.6 discusses the tax burden currently imposed on U.S. taxpayers to pay the cost of providing services that are used exclusively by U.S. corporations and their executives. The section discusses the current structure that taxes these higher paid executives at a higher rate than others in order to insure a more equitable tax structure that shifts the burden toward these end user(s) of the services. These and other hidden costs that would be borne almost exclusively by middle class tax payers under a plan such as presented by Mr. Boortz and Mr. Linder are brought to light for the first time in this shocking book of revelations. Keep an eye out for America’s Greedy (will never) Have Enough coming to a store near you.
By pdpmishap
April 15, 2008 10:47 AM | Link to this
Wow…I messed up my own math.
$23/$77 x 100 = 30% is tax.
By cityofdecatur
April 15, 2008 10:48 AM | Link to this
Todd you listen to too much Boortz but you don’t listen close enough. an item that sells for 1.oo (before tax) is taxed 23% then the final price is 1.23 screw your insults about public ed. What the fair tax people start with is 23% of the final price because that sounds better than the more truthful 30% add on which is how sales taxes are applied. ONE SHOULD STOP AND THINK something you Bootzskyites don’t do you let Neal lead you around like sheep. Quit lying it’s a 30% add on sales tax which comes out to 23% of the final price (item + tax) . the fair tax is an Orwellian double speak pie in the sky sales pitch aimed at lowering the tax burden of the upper earners and shifting it to the lower earners. the Black market of prohibition will seem like a small time operation once the fair tax is implemented. BEWARE of things too good to be true they usually are. And for all you Boortskyites that want the gov’t off your back you’ll all be sooo thrilled waiting on the monthly rebate check every one is supposed to get. which will lead to the national i d card you all loathe. Be careful what you ask for The unFAIRTAX is being devised to help the highest earners and sold to those easily swayed by talk radio. Unless every state city county switches at the same time as the (Boortzskyite) Imperial Federal Government. this will not come close to any of the promises. P.s. Todd crawl back under that rock and turn up your hate this hate that radio you’ll be happy
By AH
April 15, 2008 10:54 AM | Link to this
YES YES YES
In case you don’t realize it right now the government is taking 25% or 33% depending on how you want to calculate it. So do you prefer 23 or 25 / 30 or 33????
The Fair Tax is one of the best tax proposals since taxes were conceived of. Almost all of the arguments above are misguided attempts to discount the Fair Tax.
By gamecock kev
April 15, 2008 10:55 AM |