Posted on 10/19/2006 5:11:50 PM PDT by pigdog
The upshot of the paper is that a 23% tax inclusive rate is sufficient to maintain revenue neutrality even though the paper is a static analysis only, meaning that it does not take into account the many benefits of the FairTax for the U. S. economy and most of its taxpayers.
An excellent article by several well-respected economists - and very much worth the study ...
Hong Kong did well under a 15% tax rate, but it is a city , not a large country.
Except the paper still fraudulantly insists that governments can raise money by taxing themselves. The report also states that state governments will have to raise their tax rates to make up for the additional revenues because of the taxes imposed on the states. Not a honest third party analysis, but an analysis by a paid for fairtax shill.
It doesn't matter what the rate is. The point is that if it is a sales tax people will be constantly reminded of what their real tax rate is. From this they can make education decisions when they vote.
Whatever it might start out at, my guess is that it will steady out at around 15%.
"Why hasn't anybody thought of this before?"Excellent question ... and I really don't know but it's been "thought of" now - and in fact been extensively and intensively studied by a number of economists of which these are a few.
But to answer you oher questions ... YES, that's just what it means.
In fact, it is the most thoroughly studied and reviewed tax bill ever put before Congress.
UFT ping
Your post is merely nonsense and utter gibberish and merely indicates you either haven't read or don't understand the paper (or both).
Best damn B$ they can buy... again.
You can't dispute anything, but you do win the award for posting the first personal attack on this thread. Shocking, I tell ya....
"The problem is spending."
Indeed, ONE problem is spending, but spending by itself accomplishes very little (and hasn't for almost 100 years now) and if spending were reduced it would vault right back up there since he pols can hide and play games with the reams and reams of arcane tax laws under the present system. It is the taxing system that must first be changed or reducing spending is hollow indeed.
I suggest you read the paper with understanding and realize that the income tax, its laws, its people (the IRS) and its records are ALL eliminated by the FairTax. With enough votes to pass the FairTax there will certainly be enough to retain it - especially as taxpayers realize how it reduces their effective tax rate.
In addition, the FairTax calls for the repeal of the 16th amendment. With the FairTax in place if we as voters let the government get by with the present out of control spending habits we deserve what will indeed happen.
A very good analogy. Never heard it put that way, but dead on. The #1 problem by far is most definitely runaway spending.
"... you do win the award for posting the first personal attack on this thread. Shocking, I tell ya ..."
Sorry, but no - your #5 has that "distinction" and there'll no doubt soon be more from you considering your posting habits.
No kidding. The last time any politician talked about the Balanced Budget Amendment was 1994.
(Outside the incessant whining about personal attacks)
There is absolutely no reason the HK system wouldn't work here - if not even better.
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