Posted on 02/17/2008 7:34:33 AM PST by DivaDelMar
Your assertions run counter to the econometric analysis and are are otherwise unsubstantiated conjecture.
I have a very hard time believing that small businesses will suffer under the Fair Tax. The record keeping burdens will be much lighter than under the income tax and those who have collection responsibilities will be compensated for their trouble. By comparison, the income tax imposes a number of uncompensated costs on small business which will be removed when the Fair Tax passes.
Spending will never be “under control” until EVERY AMERICAN has a vested, personal, visible pecuniary interest in the cost of government. The income tax successfully hides the true cost from the masses who erroneously believe they pay no tax. The income tax, particularly entity level taxation, is the epitome of “plucking the goose without inducing any hissing.” —Jean Baptiste Colbert
You are correct. The rate discussion is one of the reddest of herrings. And I am part of the tax compliance industry...an industry that arose not because we produce ANYTHING that is worthwhile or a real contribution to the GDP, but because the government instituted a make-work program for accountants and lawyers. It is a travesty. I appreciate your cogent thoughts.
Stumping for the FT that doesn’t address any real problems?
(other than in the minds of tax-paranoids)
Please explain how a single, point of sale consumption tax can be transmuted into a tax that is inflicted at every stage of production.
Simple...
Dem-O-Tax-Crack-Addicts.
oh joy ANOTHER BLOG posted on news on a fair tax scam...
My, aren't we touchy today. It took one post to switch from trying to discuss facts to name-calling. Like that earns my respect for you or any of your ideas.
You’ve not explained how a simple, single point of sale consumption tax can be transmuted to a tax that is inflicted at every level of production.
So, is there something special about the income tax that precludes the imposition of a VAT? Why do you raise this strawman argument only with respect to the Fair Tax?
What precludes the imposition of a VAT today?
because the amount of the rebate can be manipulated by politicians.
Increase the formula.
Adjust what is or is not a necessity.
It makes the system more lbbyist friendly.
Take a good look in the mirror before you start in with the attacks, OK?
The prebate, like any aspect of the income tax, can be manipulated by politicians. This is a strawman argument against the Fair Tax.
The Prebate allows families to purchase goods and services up to the poverty level, as determined by the health and human services commission, effectively tax free.
a minimum wage is supposed to do the same type of thing and is routinely manipulated.
And you’ve just made my point. Anything can be manipulated by the politicians. The Fair Tax is no different. The Fair Tax, AS WRITTEN, is much cleaner and far less susceptible to manipulation than the income tax.
The prebate is provided to all, at a flat rate, on the basis of family size. As written, there is no ability in the Fair Tax Bill to change the prebate on the basis of income, to track products purchased or to provide differential reimbursements on any basis.
Wow, and making up whole new sections of the FT bill too... Amazing!!
Start at the point of consumption and engineer backward to the beginning of the process.
The point is that a VAT in Europe is collected at the point of sale. The hardest part of implementing the VAT will be achieved (by stealth) in implementing the Fair Tax. Once the point of sale collection is hard-wired, it’s easy to go backstream and add in taxes along the production process.
The next question is how does anybody succeed in getting John McCain to frequently talk in detail about the Fair Tax? Both Barack Obama and Hillary Clinton don’t want anything to do with either tax cutting or with any kind of tax reforms such as the Flat Tax and the Fair Tax. John McCain also doesn’t seem to be interested at all in the Fair Tax!
A one stick band aid is a non starter in the real world. that is one reason the current system works is because it is self adjusting for labor content.
And by making taxes more visible to the taxpayer the FairTax is the ONLY alternative on the table that will have any chance of lowering spending. Do you agree?
What is standing in their way now? Why don’t they just create a VAT and be done with it? For that matter, why don’t they just add a national sales tax to the code now?
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