My Prediction if the Fairtax is passed

[netvictory]

Conservative Movement

Rush Limbaugh accuracy rating is lowered to 10% because he totally missed the biggest political paradigm change in history, which destroyed liberalism in America.  

Democrat party fails to elect anyone to Congress because they opposed the Fairtax and kept trying to change it. 

Union membership drops to less than 1% because Union leadership runs the Democrat Party.Joe Morecraft III and Walter Williams start a movement to replace the Fairtax with the head tax. No one listens or cares about the head tax, except for Rush Limbaugh who jumps on board. Rush's accuracy rating is lowered another 5 points.

Every Evangelical pastor, conservative leader and Republican candidate claims he was for the Fairtax when the Fairtax wasn't cool.

Christian Life

Christian tithing increases because people now have 22.65% to 34.65% more spending money in their paychecks. Church would then have more resources to spread the Word of God. The beginning of the largest and longest Revival occurs.  

Resurgence in Christians Hospitals occurs, driven by the increase in church revenues, Christian thrift, and Evangelist community outreach both at home and abroad. Americans Christians become known worldwide for Christian Medical missions. 

The study of Latin and Greek reappears in American as a part of a normal private school K-12 education. A restoration of Puritan values sweeps America as communities began devote their lives to promoting Crown Rights of King Jesus. 

The Family meal time is restored because people want to save money, work at home, home school, or sends their children to private neighborhood schools. 

The number abortions drop because women and families get more money in their prebate checks for each child in the family. 

Pro Life supporters’ demand the Fairtax prebate starts at the point of conception and the limit on children in a family be removed. Abortion becomes obsolete and is banned. 

Pastors under the Fairtax can say anything they want from the pulpit without fear of losing a tax exempt status, including endorsing candidates and political parties.

Membership in the Democrat Party or in a union is consider Satanic by most churches, and preached against in the pulpits of Evangelical Churches.

Almost every Bible Believing Church has a K-12 school they support or run.

Government

Americans learn the value of saving money and demand Congress and state legislators cut spending.   

Elected officials now have twice as much time to address the spending side of government because the Fairtax, which has become the Third Rail of politics, can not be touched. The Sixth Amendment becomes obsolete and no longer talked about. 

One half of the lobbyist in Washington and in every state capital lose their jobs and go home and look for real jobs because there is no tax code to play with. 

Local and state property taxes are eliminated from the American society, because the Fairtax is a broader base sales tax then any current state sales tax, and it can replace both property and income tax systems at the same percentage rate of most current state sales tax.  

The United Nations is kicked out of the United States. The League of Fairtax Nations takes over the building.  Nations must have a Fairtax and an American Bill of rights to join the new League of Fairtax Nations.

Home schooling and the number of private schools increase because education is consider an investment and not tax under the Fairtax. 

The money spent on government schools is rolled into the state prebates checks because Americans began to despise socialism. Government schools become obsolete and Teachers Colleges go out of business across America. John Dewy spins faster in Hell.

Economy

Personal debt is no longer the number one marketed product in America. Most people have access to their prebate through a Debt card, and use it only in emergencies, automatically transferring excess money over to a mutual funded each month.

The average person who starts work at 15 years of age can retire by 35 years of age, with or without a college degree. Most college graduates go back to school by age 30 and have two or three different professional careers in their lifetime.

Everyone who wants a job has a job. The economy is booming!

Corporations are moving their headquarters and manufacturing back to the USA!

American products, for the first time in history, are shipped out of the country tax free.

American products, for the first time in nearly 100 years, have equal or better advantage in the American market place. Currently, idiots run the country.

We get to keep 100% of our paycheck! Currently, idiots run the country.

Social Security is on stable footing for the first time in years! It eventually becomes an obsolete government program no longer wanted or needed.

Medicare is paying its own way and is no longer in danger of default! It eventually becomes an obsolete government program no longer wanted or needed.

The Corporate taxes and costs of compliance hidden in both wholesale and retail prices no longer exist! Even with the Fairtax prices are nearly the same as before the Fairtax.

We love our monthly prebate check! The lower income people pay no taxes because of this and the rest of us get a free ride up to the amount of the poverty level!

This means we can save more, faster and have more money available for education, home ownership and retirement!

We don’t have to fill out those stupid IRS forms anymore! We save a total of $250 billion or more (about 3% of the GDP).

The government wins too! They get the same amount of revenue they are used to getting! Currently, idiots run the country and want to keep the seesaw tax reform debate going and do not support the Fairtax. The Fairtax is not tax reform, it is tax replacement.

And guess who has to start paying taxes for the first time in their lives? Illegals, prostitutes, drug dealers, the porn industry, criminals, plus all of the other under-the-table transactions that take place! Currently, idiots run the country

The IRS and the tax code is eliminated, except as punishment for those who try and cheat on the Fairtax,.  It is later ruled unconstitutional by the Supreme Court because it is deem cruel and unusually punishment.

Note: Part of the list was stolen off a blog. My apologies to the owner of that blog.

 

Thanks,
James A. Hodges  

Podcast: gopwing.podomatic.com 

Memberships:

• http://fairtax.org
• http://kraa.org
• http://gopwing.com

[steadfastconservative]

Regardless of the what the benefits of the Fair Tax would be, I doubt that even half of these predictions would come true.

[dirtbiker]

I had a flashlight that stated it was waterproof down to 500 feet, explosion proof, etc. EXCEPT in cases of shark bite, bear attack, and children under 5.

THAT was a guarantee, wasn't it?

Besides, who's to say they are certain NOT to happpen....

Argue "absolute certainty" all you want, but the only 2 "absolute certainties" in this life are death and taxes....

[dirtbiker]

You also took my guarantee statement out of context. Here is the full statement.

Every mfgr. wants as much market share as they can get, and as soon as one HINTS of a price cut, the rest will match or beat it. GUARANTEED!

The only time this doesn't happen is with government run anything.

[sauropod]

Boortz ain’t gonna like your assessment of a new Revival b/c of the Fair Tax.

[William Terrell]

Even with your qualification, is it GUARANTEED?

[guardian_of_liberty]

Sounds like you know nothing of free market forces.
Prices will be forced down by compatiton.

[Jacquerie]

With a zero percent tax on capital, said capital will flow in a torrent to the US. The stock market will boom to unimaginable heights as the dollars arrive. Seniors with retirement accounts will reap benefits that vastly outweigh their retail sales tax concerns.

[dirtbiker]

Even with your qualification, is it GUARANTEED?

Even with your pessimism, is it NOT....

[A_Tradition_Continues]

Sorry Charlie....I head up two extremely successful businesses. I KNOW BUSINESS.

[Man50D]

In some ways I like the fair tax because it seems to be functionally equivalent to the VAT

The Fair Tax is nothing like a VAT. The purpose of a VAT is to impose taxes at each stage of production. The Fair Tax will impose tax only at the final state since embedded taxes will not be incurred due to the elimination of corporate taxes.

but I will never, never, never support it unless the amendment to the constitution for income taxes is repealed, first.

That would prolong passage of The Fair Tax. There is a separate bill, HJR 16, which repeals the 16th Amendment to the Constitution but it must go through a different adoption process than HR 25. HJR 16 has to be passed by a two-thirds vote of members of both the House and the Senate and be approved (or ratified) by three-fourths of state legislatures (38) Fair Tax FAQ #50 and therefore take longer than passing HR.25.

The last thing in the world that I want to see is two tax systems.

So does the Americans For Fair Taxation that is why AFFT is working on both bills concurrently. Keep in mind the FairTax legislation does three things that effectively dismantle the income tax: (1) it abolishes the IRS, (2) it repeals all statutory language having to do with taxing income and payroll (i.e., the Internal Revenue Code), and (3) it eliminates the filing of annual income tax returns to the federal government for over 140 million Americans. The 16th Amendment does not “require” an income tax, it only “allows” one, and the FairTax will have broken that egg in a million pieces.

It can be modified and changed 10 minutes after it has been passed.

Only if the people allow it to happen. Attempting to raise the tax rate would create two problems for politicians. The transparency of the tax rate printed on a bill of sale will make their constituents aware what is happening causing Congress Critters to experience the wrath from the populace. Contrast that will the convoluted income tax code that has so many loopholes and exemptions people are much less likely to know when taxes are raised. More importantly raising the rate too high will cause taxpayers to spend less. Less spending will mean less taxes collected by the government. Less taxes would force government to spend less. Congress can only maximize tax collection by keeping the tax rate within reasonable bounds. Founding father and first Secretary of The Treasury addressed this concept in his Federalist Paper #21. To quote:

"It is a signal advantage of taxes on articles of consumption that they contain in their own nature a security against excess. They prescribe their own limit, which cannot be exceeded without defeating the end proposed-that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty that, "in political arithmetic, two and two do not always make four." If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them. ."

[Navy Patriot]

Soft drink companies raised the price of a soft drink exponentially, including artificially sweetened drinks. When sugar prices returned to normal, guess what, soft drinks stayed at their high levels.

Excellent case in point.

Then the soft drink companies turned to shelf space maneuvers to squeeze out small time price competition. They never lowered prices to reflect costs.

Several industries created phony "shortages" to try price gouging in a similar manner, mostly successful in the long run.

[groanup]

Your picture of gloom and economic doom is certainly not in sync with economists. How come you know so much more than these guys?

http://www.fairtax.org/PDF/Open_Letter.pdf

[Your Nightmare]

Meanwhile, back in reality...

[CyberAnt]

I’m not for or against it - because I don’t know what it says.

However, you short-change Rush’s ability to have the pulse of the people. Maybe Rush is not supporting it because he can already sense that the general public will not accept it. Rush is much smarter than you appear to be giving him credit for.

Just because you like the fair tax doesn’t mean everybody will .. or that everybody has to.

[Man50D]

Are Sunday mornings difficult for you, sir? The American economy is a wealthy economy, a very large percentage of which is made up of "luxury" industries kept in business by wholly discretionary spending. Such industries possess elastic demand curves; changes in price produce swift, proportional changes in demand. If we were to transfer the tax burden immediately from incomes to sales, the "luxury" industries would suffer an immediate, sharp increase in the effective prices of their wares.

No more difficult than for you to research and read pertinent information sir. Those same industries, as with all industries, also possess embedded corporate taxes and compliance costs for businesses that are passed onto the consumer in the form of higher prices. The Fair Tax eliminating corporate taxes and dramatically reducing compliance costs will be a considerable savings to companies. Competition will require them to pass those savings onto the consumer by lowering prices because businesses realize failure to do so will result in losing business. Factoring in the Fair Tax will bring the total cost of a good or service back to where it was with the income tax. Consequently there will be no price increase due to The Fair Tax. Additionally purchasing power will increase for individuals due to the elimination of federal taxes from their paychecks. People tend to spend more money when they have more money, increasing the number of people and frequency of purchases for luxury items. Stable prices and increasing purchasing power will subsequently increase demand.

My word, some people really should learn to read before they attempt to write.

You should heed your own advice. There was no misinterpretation of your statement. My statement in my previous post to you was and is a direct response and on point to your if scenario.

That presumes that your Utopian scenario, in which the income tax and the IRS are iummediately abolished, does not arise. If the income tax and a federal sales tax were allowed to coexist for a few years, you can bet your bottom dollar -- probably all the rest of them, too -- that powerful forces would marshal in an attempt to keep them both.

Your erroneous presumption they will co exist for a few years clearly shows you have not read The Fair Tax Act Of 2007(H.R.25). By actually reading the bill you would realize defunds the IRS in a much shorter time frame than you assume. To quote:

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.

(b) Records- Federal records related to the administration of taxes repealed by title I of this Act shall be destroyed by the end of fiscal year 2011, except that any records necessary to calculate Social Security benefits shall be retained by the Social Security Administration and any records necessary to support ongoing litigation with respect to taxes owed or refunds due shall be retained until final disposition of such litigation.

Yet another demonstration of willful incomprehension. The existing Treasury Department is far too small to provide the tax police required by a law that mandates tax collection from America's four million businesses.

Yet another fallacy based on supposition instead of referring to the facts stated in The Fair Tax Act.

Section 301(C)(2)and (3)

by striking `Internal Revenue Service' each place it appears and inserting `Department of the Treasury', and

by striking `Commissioner' or `Commissioner of Internal Revenue' each place they appear and inserting `Secretary'.

Businesses are likely to mandate more scrutiny and enforcement than individual income taxation ever did, because their largely unmonitored cash flow is traditionally the vehicle by which the well-to-do have evaded taxation.

Hmmmmmmmm, let's see, the Income tax code is 67,000+ pages while The Fair Tax is only 133 pages. Not to mention eliminating all exemptions, tax loopholes and the mutltitude of income tax forms to verify will lessen paperwork dramatically. I wonder which one will be easier to enforce?

Be an enthusiast for the FairTax if you like -- as I wrote above, I support it myself -- but be a realist about political dynamics and the likelihood of unintended consequences. Oh, there's that word again.

A realist wouldn't resort to false assumptions and supposition but at least recognize it would be prudent to read all relevant material. You purposely choose to exclude reading any relevant information from the source of The Fair Tax (HR25) itself or the organization that created the bill but instead are willing to make assumptions from whatever sources you claim to use that do not have expert knowledge of The Fair Tax. That is hardly the definition of a realist.

[lucysmom]

The tax removal from airline ticket prices in the mid-1990’s is a perfect example of what would happen (because it DID happen). Prices immediately dropped because of competition. Your example is speculation as far as I know.

I guess that's why the last time I flew across the country I got a sandwich in a paper bag rather than a hot meal on a plate.

[lewislynn]

Every mfgr. wants as much market share as they can get, and as soon as one HINTS of a price cut, the rest will match or beat it. GUARANTEED!

What's stopping them from doing that now?

Maybe every business wants as much as they know they can handle. Regardless of the tax structure, taking on more than they can handle can cause dissatisfied customers and can be devastating with long lasting results.

A race to the bottom is sure death for any company joining the race.

[lucysmom]

The stock market will boom to unimaginable heights as the dollars arrive.

That's not necessarily a good thing. Remember the dot com boom?

[kjam22]

My prediction... if we overhall the taxcodes, we’ll all pay more taxes when it’s done. That’s the way life is. Once the government starts collecting taxes, they don’t quit. They might call it fair, or flat, or sales, or consumption. But it’s always more.

[Cannoneer]

On top of that: ALL TAXES ARE PAID BY THE END USER!!!