Interesting. So the total tax rate collected is based on what would formerly be wages subject to SS tax? I can see that being something that could (and should) be modified in the future.
That being said, any individual who failed to report wages for purposes of SS calculations would only be forfeiting their own “benefits” and I doubt that the government would come down on anyone just for the purpose of adding that individual’s income to the aggregate of the millions of people whose wages determine the “SS portion” of the FairTax, especially considering that the nonreporters would be ineligible to collect any SS payments.
Having said that, I acknowledge the possibility that you have found an issue with the FairTax that could use some adjustment. But it seems to me that rather than recommending a tweak to make the FairTax even fairer, you want to throw out the entire idea and stick with a system that right now, every day, punishes people for earning money, or even attempting to do so. Playing with the various income tax rates in the current system is rearranging the deck chairs on the Titanic. Why are you so opposed to fundamental reform just because there are a few issues that could possibly be adjusted to better serve the people?
On a side note, I don’t want to look like I didn’t respond to your second post. I hate it when people post multiple responses to a single post, because it makes it difficult to respond to each of their points and without doing so it looks like one has no response to subsequent posts. But when you say that you are not opposed to reform, I think you have an obligation to state just which reforms you support, and why those reforms are superior to the reforms already out on the table.
I think you have an obligation to state just which reforms you support,Maybe the right one hasn't come along yet but I know it isn't the Fairtax... Funny thing is not only do I not care what you think but I also don't feel obligated at all. Nor do I think you have an obligation to respond to any of my posts to you...even multiple ones.
That being said, any individual who failed to report wages for purposes of SS calculations would only be forfeiting their own “benefits” and I doubt that the government would come down on anyone just for the purpose of adding that individual’s income to the aggregate of the millions of people whose wages determine the “SS portion” of the FairTax, especially considering that the nonreporters would be ineligible to collect any SS payments.There's no logic in your wishful thinking. You can apologize for the flaws or play all the games you want but the law isn't asking you or your employer to report your earnings it's telling you to.
That's the beauty of the Fairtax. You can pick and choose the parts you want to comply with?
The problems with the FairTax are greater than can be solved with a tweak or two. It begins with the idea that government can raise revenue by taxing itself without recognizing that taxing government increases the cost of government.
It continues with the denial that a sales tax at FairTax rates creates a powerful motive to avoid paying the tax and that with motive, ways will be found, and that enforcement will not intrude on the privacy of taxpayers
FairTaxers both advance and reject the idea that taxes collected at the register will impact spending (FairTax paradox).
Deny the inflationary impact of the tax.
Claim the tax promotes economic freedom as if paying a 30% tax before one may eat is the hallmark of freedom.
It is a fraud, beginning with the rate (23 or 30%?) and ending with the promise of transparency and control of government spending.