Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: najida; randog

"just don't tax the necessities of life like food and be done with it."

FairTax.org's FAQ covers this:
Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after income tax and after payroll tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send their lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.


14 posted on 08/03/2004 8:48:49 AM PDT by looscnnn ("Live free or die; death is not the worst of evils" Gen. John Stark 1809)
[ Post Reply | Private Reply | To 7 | View Replies ]


To: looscnnn

In London, Vat tax is on everything. When I was there in 1990, it was 16%. On food, and every purchase you made.


26 posted on 08/03/2004 9:41:20 AM PDT by television is just wrong
[ Post Reply | Private Reply | To 14 | View Replies ]

To: looscnnn
Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after income tax and after payroll tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

I am willing to allow the rich to get more of a benefit if it keeps government out of my wallet.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send their lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.

I don't buy this argument. Michigan's sales tax exempts essential items, and such lobbying is not a problem here.

28 posted on 08/03/2004 9:42:43 AM PDT by David75 (I am personally opposed to slavery, but I cannot impose my view on others - 1860 Democrat platform)
[ Post Reply | Private Reply | To 14 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson