Fred Thompson answers "The Question"!(Supports The Fair Tax)

Americans For Fair Taxation ^ | July 25, 2007

[Man50D]

Former Senator Fred Thompson came to Houston to attend a fundraiser as he considers throwing his hat into the ring for the 2008 presidential primaries. A small rally was held at the airport for his arrival, and FairTax supporters were out in some force.

FairTax.org is determined to put the FairTax on the national agenda during this election cycle, and to that end, supporters are asking each candidate and potential candidate "The Question": "If Congress passed the FairTax Act and you were President, would you sign the bill into law?" Despite an enormous amount of jostling from the crowd and media people, we were able to get his answer on videotape. Click here to watch the video.

To see where the other candidates stand on the FairTax, click here to go to the Presidential Candidates' Scorecard.

[Bigun]

My dad has spent his whole life complaining about taxes, and it’s one of the primary reasons he’s been a lifelong Republican. Now that he’s retired, I’m sure he’d be damned to pay taxes on his earnings all over again.

I am retired and a lifelong republican as well who cannot wait for the fairtax to be enacted.

If your father has IRAs or any other tax deferred savings he would realize a huge windfall by not having to pay income taxes on those savings when they are withdrawn under the fairtax plus the purchasing power of those those dollars he has to spend would be greatly increased.

[Hostage]

We are doing studies to quantify embedded taxes on broad categories of products.

The initial results are eye opening.

The results of our studies will be used to push for ‘Truth in Taxes’ legislation. This is where retailers would either hang a preprinted placard, print on a receipt or label individual items with an estimate of embedded federal taxes.

[Man50D]

The Fair Tax won't simultaneously repeal the 16th Amendment though.

House Joint Resolution 16 currently before the House will repeal the 16th Amendment. Americans For Fair Taxation will work concurrently to push HJR 16 through Congress for ratification by the states.

[Bigun]

I invite you and your dad to spend some time here and enlighten yourselves. (Pay particular attention to the notes on the right had side which will open up LOTS of information when you roll over and click on them.)

[Hostage]

I think it’s premature still for high profile candidates to take a position but we are getting there, we’re making progress on the FairTax.

I am satisfied with FDT’s answer. I believe he will sign it if Congress passes it.

If FDT has said “I don’t know, I have to study it” like Romney did, then I would be disappointed. But he didn’t say that.

I would like to see FDT be bold and declare that we need to test the FairTax on a few selected states.

No one can argue against a test.

I think Florida and Georgia would jump at the chance to go NRST, Texas too.

[Turret Gunner A20]

re: 391

You know what? I think you're wasting your time: it's no getting through.

[Hostage]

I think you’re right.

[lucysmom]

Not everyone produces, yet everyone consumes. Fair Tax is a consumption tax, capturing EVERYONE into the tax code.

How's that? Drug dealers, pimps, etc. will collect the FairTax on all their transactions and hand it over to the government?

[counterpunch]

There is no such plan and no such plan is necessary because, under the fairtax, although some prices may rise temporarily (I doubt that myself) virtually everyone's (99.44%) purchasing power will increase.

How do you come to that figure (99.44%)?
I'm really interested in that one.
I'm also confused how the cost of goods and services would not go up once an income tax is shifted to a consumption tax. Are you saying that the the after-tax cost of living would remain the same, and there would be no federal income tax?

I understand supply-side economics quite well, but I do not see how the such a plan would be tax revenue neutral. The taxes still have to come from somewhere, and increased buying power alone would not make up the difference.

Plus there is the tax revenue uncertainty principle, since consumer spending fluctuates from quarter to quarter significantly more than incomes, and thus is far less predictable.

So please explain again how someone like my parents would not see their savings which they are living off of be taxed all over again, forcing their cost of living to rise dramatically. Thanks.

 

[counterpunch]

Answer the question. Does the Fair Tax do away with federal income tax or not?

[Man50D]

Please re-read what I wrote.

You should heed your own advice.

My post #11 The Flat Tax also retains the oppressive IRS and its 67,000+ page tax code.

Your reply in post #52. No it doesn't.

Even with a Fair tax, the IRS will still exist in one scope or another. Who's going to collect the revenues?

The IRS will be abolished! Section 301(a) eliminates funding for the IRS. Consequently it will no longer exist!

SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED FEDERAL TAXES.

(a) Appropriations- Appropriations for any expenses of the Internal Revenue Service including processing tax returns for years prior to the repeal of the taxes repealed by title I of this Act, revenue accounting, management, transfer of payroll and wage data to the Social Security Administration for years after fiscal year 2011 shall not be authorized.

Who's going to collect the revenues?

The already existing Department Of The Treasury

Section 301(C)(2) c) Conforming Amendments- Section 7802 is amended--
(2) by striking `Internal Revenue Service' each place it appears and inserting `Department of the Treasury'

It is obvious you haven't bothered to read The Fair Tax Act or visited the Americans For Fair Taxation website. I suggest you do so before making anymore incorrect statements and assumptions.

[Hostage]

You're giving orders now?

Well here’s my order to you:

Go and do your homework. Here is your study syllabus:

http://www.fairtax.org

[lucysmom]

They might hate it less if their income, capital gains, estate, and all other federal taxes were repealed, which is what H.R. 25 would do.

HR 25 does not repeal all federal taxes.

[Bigun]

Here is an old thread (now closed for additional comment) but still very much worth taking the time to read.

[lucysmom]

I hate the income tax and IRS (and its infernal snoopiness) with a passion but the 16th Amendment authorizes Congress to lay a tax on incomes from whatever source derived. Thus, q.e.d., the income tax, however despicable, is nonetheless quite constitutional.

Another amendment would be needed because the income tax is Constitutional even without the 16th amendment. Operative phrase; "whatever source derived."

[lucysmom]

If the IRS is abolished, what kind of information could we use to verify income for things like mortgage loan applications? If you’re an employee...you wouldn’t need a W2 anymore.

Because earnings must be reported to SS to determine future benefits, perhaps SS would issue verification, or the employer would.

But, that brings up another issue - if SS benefits are based on earnings, what documentation would SS require from the self-employed?

[lucysmom]

A friend of mine joked we should outsource our elderly to Mexico where the living and healthcare costs are lower.

Mexican billionaire, Carlos Slim, wants to do just that. He would build and own the retirement homes, of course.

[lucysmom]

However, it will reduce the burden greatly on the upper income ranks, so there will be more money to spend...

That doesn't mean the have to, or will spend it in the US.

[Bigun]

How do you come to that figure (99.44%)? I'm really interested in that one.

I got it from an old Ivory Soap commercial. It is my way of saying the vast majority which is probably what I should have said rather than use the old soap commercial number.I'm also confused how the cost of goods and services would not go up once an income tax is shifted to a consumption tax. Are you saying that the the after-tax cost of living would remain the same, and there would be no federal income tax?

I'm also confused how the cost of goods and services would not go up once an income tax is shifted to a consumption tax. Are you saying that the the after-tax cost of living would remain the same, and there would be no federal income tax?

That is EXACTLY what I am saying.

PLEASE be kind enough to read some of the links I've already posted for you, particularly the lead in article of the old thread I drew your attention to, and then we'll continue the conversation.

So please explain again how someone like my parents would not see their savings which they are living off of be taxed all over again, forcing their cost of living to rise dramatically. Thanks.

There are a great many factors involved in this such as what form are your parents savings in and what is their tax bracket. The VAST majority will be far better off under the fairtax that they are under the present income tax system. If you are REALLY interested I again ask that you read the material at the links I have already referred you to as I an not inclined to reproduce all that here.

[lucysmom]

There are an average 23% of embedded taxes in every product and service.

Prove it.

There is no such thing as tax-free spending unless it for used items, then someone else has already paid the product embedded taxes.

Unless the item was originally purchased for business use, then the item would be taxed when sold for private use, even though used. Think used cars from Hertz