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More back-and-forth on the Fair Tax, and a bit of history
The Atlanta Journal-Constitution
Over the weekend, Republican incumbent Saxby Chambliss issued a defense of himself and the Fair Tax in a 30-second spot that also takes a shot at Jim Martin, his Democratic rival in the U.S. Senate race. See it below.
One thing about the Fair Tax has always puzzled — the claim that it would abolish the Internal Revenue Service. Now, if this is because the IRS is all about the income tax, such a statement might be literally true.
But does anyone believe that there wouldn’t be some sort of federal institution to oversee millions of cash registers collecting trillions of dollars in sales tax — and that this institution wouldn’t be as intrusive or picky as the IRS?
Also, in the above ad, Chambliss accuses Martin of supporting the largest tax increase in state history, which is true.
The tax increase dates back to 1989, when the state sales tax was raised from three cents to four cents on the dollar. The increase amounted to $687 million, and was the first tax hike in 18 years.
The largest portion of the increase went toward education.
The 1989 hike was accompanied by a $95 million rollback in property taxes. Which means that Martin and Chambliss have a little something in common.
Chambliss complains that anti-Fair Tax ad aimed at him, paid for by the Democratic Senatorial Campaign Committee, ignores the fact that a national sales tax would be accompanied by the elimination of other taxes.
Zell Miller, then lieutenant governor, supported the tax increase, after he was able to win an exemption for food. State Reps. Roy Barnes and Johnny Isakson opposed it, though Isakson argued for a mixture of budget cuts and increases in the tax on alcohol and tobacco. Martin, who’d also been a member of the House since 1983, voted for it.
The sales tax increase was initiated and approved by Gov. Joe Frank Harris, who ran on a no-new-taxes pledge in 1982, but declined to repeat the promise in 1986.
Perhaps the most interesting tidbit in this bit of history: Tom Perdue, Harris’ chief of staff, resigned his position shortly after Harris won his second term.
Perdue is now the chief strategist for the Chambliss campaign.
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Comments
By Truth4u
October 20, 2008 10:19 AM | Link to this
Give me Fair Tax!!!
By Truth4u
October 20, 2008 10:20 AM | Link to this
Give me Fair Tax!!!
By mel
October 20, 2008 11:31 AM | Link to this
My understanding of The FairTax is that it would abolish the IRS as we know it. It would still be around in order to process the prebates, etc. But it wouldn’t be the giant monstrosity it is now.
By Copyleft
October 20, 2008 11:40 AM | Link to this
We could also do away with our cumbersome courts and prisons if we presumed everyone guilty and had a firing squad at the ready in police stations.
Doesn’t make it a good idea.
By Dragon
October 20, 2008 11:46 AM | Link to this
The FairTax is a term very few democrats will utter. That tells me a lot about democrats.
The FairTax is the biggest and best idea in years.
By sue
October 20, 2008 11:52 AM | Link to this
Fair Tax is the best solution for our current economic troubles. Of course there will be federal management required but as mel states, certainly not “the giant monstrosity it is now”. Obviously, that saves Americans a lot of money! Read the book. It is well researched and answers all of the innuendos and even direct, legitimate questions asked. VOTE FAIR TAX - it’s a vote FORour own children, our own country.
By Clarence
October 20, 2008 12:02 PM | Link to this
I fail to see how a fair tax is “the best solution for our current economic troubles.” A tax on consumption would reduce incentive to consume, and given that we have a service/consumer based economy, I believe our economy would suffer under such a tax.
By Fair Tax is bogus
October 20, 2008 12:06 PM | Link to this
One good thing about the Martin/Chambless commericials is that finally we hear another side to the kool aide drinking Fair Tax bombardment of Georgia. While DC spends like a drunken sailor, fair tax mobs (egged on by talk radio) are supporting fantasy plans that ignore the problem (spending).
By Not a Kool Aid Drinker
October 20, 2008 12:10 PM | Link to this
The “FairTax” is one of the most poisonous policies to come out of Washington right-wing radicals.
It is completely misleading and preys on the ignorance of uneducated voters…like everyone that has posted above.
The “Fairtax” will increase the size of the IRS, it will increase the taxes on most Americans…especially the disabled and retired.
Furthermore, it will not be a 27% inclusive tax…there will be an addition 50% sales tax.
The tax system does need a little updating…but it does not need to be sabatoged.
This policy comes from the same people that wanted to privatize social security a few years ago…thank god that did not happen. Just remember, if the fairtax were in place (as it is written) our annual deficit would triple.
By Support Fiscal Responsibility instead
October 20, 2008 12:24 PM | Link to this
Instead of fiddling with the Fair Tax (which won’t work at 23% and is politically impossible to pass) how ‘bout supporting something that will work… like fiscal responsibility. We need to reform Social Security, Medicare and bring down the debt.
By Just A grunt
October 20, 2008 1:04 PM | Link to this
Thanks DSCC. They once again show how unconnected the Beltway insiders are from mainstream America. They just gave Saxby Chambliss something to hit Martin over the head with. And let me understand this correctly. Critics of the Fair Tax are against it because it will give less money to the government to spend? Uh isn’t that what we want it to do?
By Conservatives Against the Fair Tax
October 20, 2008 1:06 PM | Link to this
Real Conservatives don’t support the Fair Tax (i.e. Heritage Foundation, the Libertarian candidate for Senate in Ga). I’ve read the book and studied this for years… The Fair Tax doesn’t work.
By vanno
October 20, 2008 2:18 PM | Link to this
Forget the Fed, if the FairTax has a chance, it will be at the state level. Michigan almost got it on the ballot this fall.
“The Michigan Fair Tax Proposal would amend the Constitution of the State of Michigan to eliminate the Michigan Income Tax of 4.35% and the Michigan Business Tax and replaces those taxes with a 9.75% sales tax on all consumer purchases of goods and services, but does not tax business to business transactions. No other statewide tax could be restored, enacted, or the sales tax increased without a vote of the people. The state shall reimburse to every Michigan citizen’s household an amount based on the Federal Poverty Level Guidelines. This proposal would constitutionally guarantee Revenue Sharing for counties, townships, cities, and villages”.
e plan is simple and brilliant and would have saved Michigan.
By Will Jones
October 20, 2008 2:59 PM | Link to this
The “Fair Tax” is perfected caesarism, freeing corporations, fully in violation of the letter and spirit of their Public Charters and their fascist false-elite masters from the income and capital gains taxation which has failed to prevent the spiraling concentration of wealth destroying the eighty percent Working Class - the People: unsound money, off-shoring, downsizing, promotion of illegal immigration, usury, fascist welfare bailouts, inflation, and visas for foreign workers.
By forcing the poor and working poor onto the tax rolls through a levy on consumption, while regressively removing the corrupt rich who have tacitly condoned or participated in the present overthrow, by a treasonous sectarian faction of Our Republic, Chambliss demonstrates for “every eye to see” his open, frank work on behalf of caesaropapism’s Fifh Column in Our Country.
“Render unto Caesar” only applied to the Old Sectarian Order of King and Pope. America is the New Secular Order as Our Founders knew explicity and consciously rejected caesarism and the Roman Anti-Christ upon which it rides to follow only the “King of America,” Annuit Coeptis, the Creator, One G-d.
Jim Martin chose to place his life at sacrifice for the Constitution and the People when Duty called 9.2 million of us to serve during Vietnam.
Chambliss, like Gingrich, Perdue, Cheney, Bush and the rest of the Gay Old Perverts and Traitors-in-power were proving their craven cowardice learning how best to serve the Roman Anti-Christ which assassinated John Kennedy to send us to their slave plantation of Vietnam, and has now committed 9/11 for more false war on behalf of global caesaropapism and the “Urbis et Orbis” one-world order.
Martin may not be as well-spoken as the silver-tongued “devil” Chambliss’ own mother said her son was, but he doesn’t have a comb-over like Chambliss’ pathetic attempt to hide his weird baldness, nor is he a draft-dodger like Chambliss.
Chambliss is a fake of a man and a false patriot. His consituency is the false-elite now subverting America. He supports the “Fair Tax” to assist in the concentration of wealth and power the Roman Anti-Christ needs to complete its subjugation of the American People.
He is not one of us. His draft-dodge and failure to protest showed us then. His support for homosexual draft-dodger Bush’s 9/11 and false war treason, and for the “Fair Tax” now, shows he still doesn’t know the correct side to butter righteous American bread.
Martin/Obama ‘08: for true Georgia and a godly America
By Deewey715
October 20, 2008 3:40 PM | Link to this
The agency to “oversee millions of cash registers collecting trillions of dollars in sales tax — and that this institution wouldn’t be as intrusive or picky as the IRS?” already exists in 45 of the states including Georgia. Collection and administration would be handled by the state sales tax authority for which that group would receive payment of 0.25%. Ask any businessman what happens if they do not remit the sales tax today. Should any of the 5 remaining states choose not to be involved, the function would be handled by the Treasury Department.
Prebate payments would be handled by the Social security Administration, they have plenty of experience.
By NoGovNoTax
October 20, 2008 3:42 PM | Link to this
This Country has been around longer without the Income tax than with it. Let’s get rid of it again. Because of the grassroots,support and attention of the fairtax, this could happen. The only ones in it’s way is the lobbyists, special interests,uninformed and ones who want to argue about for the sake of argueing, or the commies who enjoy working to put food on the congress’ table. This is A way. No other proposal has come close. Im confident it will happen.
By JerryT
October 20, 2008 4:54 PM | Link to this
So the states collect the sales tax, then send it off to the Feds, who skim some and then return some of it back to the states?
That sounds efficient.
Actually, I think I get it now. It’s wealth redistribution. We take money from the wealthy (blue) states and send it to the poor (red) states.
By Will Jones
October 20, 2008 5:21 PM | Link to this
regressive tax:
“A tax that has a rate that declines as the amount to be taxed increases. In terms of income, federal and state taxation of cigarettes is regressive because low-income smokers pay a higher rate of taxation in terms of their income than high-income smokers do. A system of regressive taxation tends to free more funds for investment because high-income individuals tend to save a greater portion of their income. However, a regressive tax is often considered socially and politically unacceptable. Compare progressive tax.”
The Fair Tax is a de facto regressive tax and opposite the American Creed.
Not only should the People rise up to reject this overt caesarism, only those who are co-beneficiaries of the treasonous false elite who have brought us to the present financial crisis, and their dupes, support it.
This “Fair Tax”-promoting false-elite is the Roman Anti-Christ’s American Fifth Column which must be fully expropriated to balance the books on the astronomical debt its minions have amassed to pay for their false war and, enslaving the People, redistribute wealth into their own pockets.
Its leaders must be tried and hanged. Those found guilty of Misprision of Treason must be banished.
Chambiss’ advocacy for the Roman Anti-Christ might play well in a Roman Catholic/Mafia-run area of our country, it should not, by G-d, be acceptable to the finest of Americans, the People of the Greatest State - Georgia.
By Truth4u
October 20, 2008 6:41 PM | Link to this
USA Would become the Car Maker of the world!!!
Corporate tax on major company’s are around 37% and I do not think anyone really knows the exact amount built in to USA goods because if you look at the BMW plant here in SC, If you took the tax they pay It would be a HUGE under-estimate to just look at BMW’s passed down on to the car because Michelin tires also pay Big taxes and pass them down on their tires to BMW as do Lear Seats as do Spartan Steel as do the battery maker and on and on and as do every single part on that car that is made here in the USA. It would be very interesting to know exactly how much tax is really built into that car, I believe it would be shocking.
They say around 27% of the cost is taxes passed down but I think it would be a little higher because if you look at how much the Companies spend on keeping up and paying these taxes and also keeping up and being a tax collector with pay roll taxes this cost has to be high and also passed down on a product also.
*Even just taking the 27% built in figure, with fair tax a American car that now sales for $20,000 would come down to $14,600 and then be taxed at the retail level at 23% bring the cost to $17,958.
*But now with the Fair Tax the American made car can be exported and sold over seas for $14,600 instead of $20,000. Just think of all the car manufactures rushing here to the US to build their cars, JOBS, JOBS, JOBS.
*Imported car makers are not taxed by the US. so there is no US. tax built into their cars so a $20,000 imported car taxed at 23% would then be $24,600.
**How about the Cheap imports- a imported car selling below what our car makes can make them for at the very low cost of $14,000, when fair taxed it becomes $17,220 . Now compare that to the $20,000 American made car after Fair taxed above.
Just think of all the car manufactures rushing here to the US to build their cars, JOBS, JOBS, JOBS.
By Truth4u
October 20, 2008 6:43 PM | Link to this
The IRS sends out 300,000 trees worth of forms and instructions every year. Eight billion pages. Twenty-eight times around the world if laid end-to-end. at a cost of $11.2 billion
By Truth4u
October 20, 2008 6:45 PM | Link to this
Fair Tax Monthly Prebate would be-
FAMILY of 2 would receive $367 a month
FAMILY of 3 would receive $429
FAMILY of 4 - $492
FAMILY of 5- $554
FAMILY of 6- $617
[http://www.fairtax.net/14.htm]
By Truth4u
October 20, 2008 6:48 PM | Link to this
Based on the fact that we import $200 billion worth of goods per month and this is before the store marks it up for their profit. If after the store added their mark up and it was fair taxed at 23% this should generate somewhere close to 3/4 to almost a trillion dollars per year. And this is just from imports, Right now the IRS collects 2.2 Trillion in taxes with 11 billion of that going to the IRS in the cost of collecting it.
Now if the Fair tax can generate almost a trillion just off imports just think of what it could do on every thing else
By Truth4u
October 20, 2008 7:04 PM | Link to this
Receive A Check Monthly Bring home A bigger Pay Check
You could receive a check Monthly from the Gov. for doing absolutely nothing, WOW! But That’s not all. you could also eliminate all fed. Taxes from being took out of your pay check, That’s Right!! With the Fair Tax this is all true but there’s even more, you would no longer have to file them confusing tax forms every year, Also no more investment, Estate tax or capitol tax, And there’s even so many more benefits to see the whole list visit text to be linked . With the fair tax all the taxes above and more would be eliminated by just a simple 23% sales tax, That’s Right! No more Tax worries and headaches just by simply adding a simple Sales Tax. You may be asking how I can get the Fair Tax, It’s Simple, Just Call and Email your Governor and your Representatives on State and Federal level and Demand the Fair Tax NOW!!!!
By Truth4u
October 20, 2008 7:31 PM | Link to this
I like the Fair Tax, It has the ability to bring back over 13 trillion dollars that are now in Tax shelter accounts. Some if not all of this would come back in our banks, backing up loans so tax payers will no longer have to. Plus America would become a tax shelter bringing in even more to the banks from others trying to hide they money from their taxes.
By Dutchman3
October 21, 2008 3:57 PM | Link to this
That $13 trillion parked in offshore accounts isn’t coming home, because home isn’t here!! According to the Tax Justice Network. which tries to track offshore holdings, there is indeed around $11 trillion in offshore accounts, but it is owned by wealthy individuals and corporations from all over the world. They estimate that only $1.6 trillion belongs to North Americans, and there are 23 sovereign countries in North America. The estimate for the US is around $700 billion, and when invested and taxed in the US, would bring in less than $50 billion in revenue. No big deal. And, if you think that foreign assets are going to rush to our shores, read HR25, Section 905 which places a 23% tax on dollars earned in the US by foreign owners. This whole offshore issue is just another Fairtax myth!
By Truth4u
October 22, 2008 9:17 AM | Link to this
If that wealth is setting there to keep from being taxed, then if it was no loner taxed here most would come back and other countries wealth would also come to our banks for the interest, Most off shore accounts charge a hiding fee and that’s it, you do not make interest from it, here they could get interest.
By Aaron
October 23, 2008 5:28 PM | Link to this
Come on AJC, you’re a newspaper in the middle of FairTax country, do some digging… In HR25 (the FairTax bill) the IRS is defunded and abolished after 3 years of wrapping up audits, etc. The STATE sales tax organizations collect and remit the FairTax to the new Federal Sales Tax Bureau.
The FairTax would revolutionize the American economy and throw off the horrible tax code we are suffering under now. Almost $300 BILLION dollars we spend now figuring out our taxes could be put to good use and its estimated trillions of investment dollars would come to our shores with the elimination of corporate taxes. Those are the taxes the people end up paying anyway while today they are driving the “Made in America” label overseas.
Now we just need to get the FairTax past the politicians…
By Aaron
October 23, 2008 5:34 PM | Link to this
Come on AJC, you’re a newspaper in the middle of FairTax country, do some digging… In HR25 (the FairTax bill) the IRS is defunded and abolished after 3 years of wrapping up audits, etc. The STATE sales tax organizations collect and remit the FairTax to the new Federal Sales Tax Bureau.
The FairTax would revolutionize the American economy and throw off the horrible tax code we are suffering under now. Almost $300 BILLION dollars we spend now figuring out our taxes could be put to good use and its estimated trillions of investment dollars would come to our shores with the elimination of corporate taxes. Those are the taxes the people end up paying anyway while today they are driving the “Made in America” label overseas.
Now we just need to get the FairTax past the politicians…