We have to get rid of the prebates.
Aw geez! not this $@!^ again!
a tax on consumption will inhibit consumption which will hurt the overall economy.
a zero-sum cost to the taxpayers is a pipe dream when dealing with the realitiers of washington. Ain’t gonna happen.
Businesses will NOT pass 100% of their savings (not having to pay taxes) onto consumers.
those who consume will pay more. meaning that those who spend more of their paycheck on goods and services will pay more, whilst thosw with higher incomes (super ruch) who spend less a percentage of their income on goods and services.
eliminate the IRS??? Who’s gonna mail them “prebates” to people each and every month?? sounds like a net beauracratic growth to me.
note no taaxes on capital gains - the dems are gonna love that one!
Every household in America will receive a check or a credit to an account at the beginning of every month equal to the amount of FairTax that household would be expected to pay during that month on the basic necessities of life. Poverty figures for various family sizes from the Commerce Department will be used to calculate the size of this "prebate." This guarantees that nobody will have to pay the FairTax on the basic necessities.The Commerce Department? Hasn't Boortz read the bill? Sec. 303 clearly states that the poverty level is determined by the Department of Health and Human Services.
“A Hard Look At The Fair Tax (sic)”What's the "sic" for Neal? The bill's official short title is "Fair Tax Act of 2007."
The FairTax eliminates all corporate, business and personal federal income taxes, all payroll taxes, capital gains taxes, dividend taxes and estate taxes, and replaces them all with one embedded sales tax on the sale of all goods and services at the retail level.The FairTax would not be "embedded." Sec 510 clearly states "For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase."
• The home mortgage interest deduction is of no value whatsoever to someone who does not pay income taxes.
how many people are paying mortgates and not income taxes??? My guess is that if one is too poor tp pay taxes, they are probably too poor to afford a house. Why not KO the housing industry altogether?
• People don’t contribute to charity in order to get a tax deduction. Who would give away $1000 just to save $350 on their taxes? Somehow that doesn’t seem to be a good trade to me.
huh? that's countraindicated - if the tax deductions on charity are so miniscule, why are they even deduc table int the first place unless it is to encourage charity.
• If lower tax rates on capital gains encourage investment … think what NO taxes on capital gains would do. That’s life under the FairTax.
ayup. the dems are really gonna go for this. the superrich get super richer, and guess who has to make up for the revenue loss due to this exemption. "what's gonna pay for this tax cut for the rich?"
• Ditto for dividends.
ditto for favoring the rich at the expense of the middle class/poor.
This guarantees that nobody will have to pay the FairTax on the basic necessities.Not true. The bill determines the "prebate" by multiplying the poverty level by the inclusive rate. The tax on poverty level spending would be the poverty level multiplied by the exclusive rate. The prebate would not guarantee that nobody would have to pay the FairTax on the basic necessities.
And how, Neal, are you going to guarantee that that 22% will disappear?
Simply put … every person, business or other entity that has any involvement at all in bringing any product or service to the retail marketplace incurs a tax cost arising from that involvement; and every one of these entities will incorporate that tax cost into whatever they charge for their labor, ideas or material goods. All of those tax costs come home to roost in the final retail cost of that product or service, to the average tune of 22 percent. Again, simply put, the FairTax removes those embedded tax costs from the price of all goods and services at the retail level and replaces them with the embedded 23 percent FairTax.Hasn't Boortz learned his lesson about "embedded taxes"? The 22 percent number comes for one study done by Dale Jorgenson. The majority of those "embedded" taxes are personal income and payroll taxes! To get those out of prices workers post-FairTax gross pay would have to equal their pre-FairTax net pay, i.e., their take home pay would not change. This isn't going to happen, thus these "embedded taxes" can't be removed from prices.
1. Enter your total income __________
2. Enter $5000 for single-filer, or $10,000 for married filers _____________
3. Enter your number of dependents times $5000 ____________
4. Add lines 2 and 3. ______________
5. Subtract line 4 from line 1. ________________
6. If line 5 is less than zero, this is your refund __________
7. If line 5 is greater than zero, multiply line 5 by .2 - this is your tax bill __________
And if you keep income tax payroll deductions, then there would be one more line to deal with that.
The true believers won’t be swayed by this one iota. Their love of the IRS and their own personal scam under the current system is more important than a truly equitable system.
The FairTax will replace all payroll taxes. Payroll taxes are quoted as embedded taxes. If you were to quote your entire Social Security tax bill (and that includes your employer’s so-called “contribution,”) as an exclusive tax the rate would be 20.5 percent.Uh, no, Neal. The employer portion is not "embedded" and it's already expressed in exclusive terms.
Notice how practically everyone of Boortz’s rebuttals is based on these mythical “embedded taxes.” He’s basing this all on one study by Dale Jorgenson. Don’t you think if these “embedded taxes” really existed there would have been much more study on the issue? I don’t know about you, but I’m not ready to risk the economic future of this country based on one theoretical study from one economist.
Anything that abolishes the IRS is good for this country. If the Fair Tax does that, I’m all for it. The CPAs, attorneys and everyone at the IRS can find other employment. I doubt it can actually come to pass but I can dream.
It's advocates talk about how there are already embedded taxes that we all pay that show up as a portion of the price we pay for items. That's fine. Then they try and say that because the taxes are being paid at the point of sale, businesses will earn more. The businesses won't pay as many taxes directly, but their customers are still paying the taxes, so that money is still being siphoned out of the economy by our government.
They make comments about the destruction of the IRS that get a lot of people worked up because everyone hates the IRS, but taxes are still being collected by other means, that the government still pays for, so the actual cost savings are tiny at best.
So why are people that really understand the Fair Tax pushing for it? The only reason I can see is protectionism.
You see with all the tax burden being placed on domestic sales, exported items don't get taxed, which acts as a huge export subsidy.
Since the sales taxes are on all domestic sales, imported goods bear an equal tax burden in the US as domestic goods, as well as any embedded taxes they face in their home countries. This acts just like a huge tariff on imported goods.
The other thing that gets left out is what happens to when we switch to a sales tax from an income tax? Well, we get a lot bigger paycheck, but it is evened out by what items cost. Your purchasing power on your income stays pretty much the same (due to higher take home pay), but now each dollar buys less.
Anyone who has been following the effects of the sliding dollar should have some idea of what that might cause.
Anyone want to guess what all of our creditors that have lent our government money would think of getting paid back in US dollars that are now worth 20% less? How do you think that would effect our continued ability to continue to finance our current massive national debt? A large portion of that debt isn't long term debt. It is short term debt that we continuously refinance.
If we are unable to continue to refinance that debt at low interest rates, we will have to pay higher rates, and the national debt will soar even if our government was able to exhibit fiscal responsibility.
Who is going to lend us money at a few percentage points when we showed a willingness to drop the value of our currency by 20+% which means we effectively defaulted on 20+% of that debt?
The Fair Tax is really a protectionist tax. It doesn't cut taxes, and it doesn't simplify taxes any more than a flat tax would.
Implementing it also has a serious detrimental effect on people's cash savings, and on our nation's ability to continue to finance our debt that we have foolishly accumulated.
So if they aren't trying to get the US to effectively declare bankruptcy and start over with a more protectionist economy, what are they trying to do with the Fair Tax?
IOW the same BS as he has said before.
It is still the largest new entitlement program since the adoption of Social Security with the prebate.
it will destroy all large items which will move overseas to avoid the insane sales tax ponzi scheme. This is what happened in the 1991 luxury tax regime which killed the luxury boat and car industry.
Bortz has been called out again and again and the only thing he can do is push the same recycled BS.
Hucabee who has risen supports this BIG GOVERNMENT entitlement scam. Hucabee supports the prebate which will put the GOVERNMENT in deciding what are allowable “necessities” for the pre-bate entitlement.
the excuse of we had to include that to sell the deal is just more BS. The current system stinks and the Fair Tax SCAM is not the way to do it.
The fact he has nothing new in his denial retreads only makes him look like a zelot scientologist. (not that he is a scientologist, he vehemently denies the current SCAM has anything to do with the identical SCAM pushed by the church of scientology to abolish the IRS as pushment for not giving them tax exempt status faster. IOW they just ACT like scientologists.)
http://boortz.com/nuze/index.html http://boortz.com/nuze/index.html FAIRTAX, THE TRUTH ... COMING TOMORROW
Yes, I know I dwell on this a lot in the Nuze. Web Guy tells me that I get emails every day telling me that I'm just in this for the money. You know, there is just no way in the world you're going to escape those types of criticisms. So I don't let them slow me down a bit. Trust me, if I was going to write another book for the money it wouldn't be on taxes and it wouldn't be coming out in a trade paperback format that you can buy for under 10 bucks.
Anyway ....
A lot has happened since we shocked the DC establishment with the FairTax book in 2005. Books on taxes just flat-out don't debut No. 1. The FairTax Book did. Since that time it has been virtually impossible for any Congressman or Senator to show up at a town hall meeting without having to field questions on the FairTax.
Over the past three years I've been buried under stacks of letters from these elected officials .. letters sent to constituents in response to queries about the FairTax. To put it in polite language ... I've never seen such a collection of unadulterated bullshit in my entire life. That, my friends, is why Congressman Linder and I wrote FairTax, The Truth.
Some have asked if this new book explains the FairTax in detail. I'll give that a qualified yes. You don't, however, get the benefit of the complete story behind the FairTax and our current tax system. More importantly, I think, is the fact that FairTax, The Truth responds to the misinformation, confusion and outright lies that have been spread throughout the media relating to the FairTax:
*** The FairTax does not increase the price of everything you buy by 30%
*** The FairTax does not put an increased burden on the poor. It literally "untaxes" them.
*** The FairTax does not destroy the middle class. *** Scientologists had nothing to do with it.
***What is the truth behind the "you get to keep your whole paycheck" concept
*** Retired Americans living on their investments and savings are not "double taxed" by the FairTax.
*** FairTax rate will not have to be 40, 50 or 60 percent.
*** The FairTax will not "destroy" our economy, no more than nutritious food would damage a starving child.
We've been listening for a couple of weeks now about some sort of a grand economic stimulus plan from our keepers in Washington. They're idea of economic stimulus is to put about $600 or so in the hands of millions of carefully selected Americans ... .selected on the basis of vote-buying. It's a joke, my friends. All these politicians have been doing is trying to target some specific voters out there with a little walking-around money in order to get their support in November.
*** You want economic stimulus? Great .. I'll give you some economic stimulus. How about making the United States the number one tax haven for business in the entire world?
*** How about freeing up anywhere from $300 to $500 that is spent by Americans and businesses to comply with our current tax code? *** How about bringing some of that $13 trillion – that's with a "t" – that has been working overseas to escape our punishing tax system, bringing that money back home to work here, in our economy.
*** Instead of giving some households a $600 goodie just this once, how about giving every legal household in this country hundreds of dollars every month to offset the taxes on their basic necessities.
*** How about totally removing the tax component from all capital and labor in this country.
*** How about letting people invest with untaxed dollars, and then not taxing the profits from those investments? To paraphrase Crocodile Dundee ... "Economic stimulus? That's not economic stimulus. This is economic stimulus."
Come on, folks ... we can DO this. It is clear that the politicians have to be drug into this kicking and screaming ... as does anyone who thinks that America is great because of government. You have to remember ... you're still running the show out there. Every single one of those congressmen out there is up for reelection this year ... and your vote counts just as much as the next voters.
This election year is showing all of us just how elected officials like to manipulate the tax code in order to favor their constituents and punish those who don't vote for them. For months now we've been hearing calls for more taxes on the rich, more rebates for the poor, and a variety of ideas as to how to use the tax code to change people's behavior. This has to stop.
Many historians have written that this country will be doomed to destruction once a good segment of the voters figure out that they can use their ballots on election day to reach into the pockets of those who have more money, and grab some for themselves. The FairTax will make people keep their hands in their own pockets, not yours. Don't you just love the idea of watching the moving vans pull up to those law offices on K Street after the FairTax is implemented? All those thousands of lawyer-lobbyists packing their gear to move off to greener pastures somewhere else ... weeping at the loss of their six-figure incomes earned by manipulating the current tax system for the benefit of their clients.
We can do it. We can drag these politicians kicking and screaming to the FairTax. We can make them willing – though reluctantly – participants in the greatest transfer of power from the government to the people since our Constitution was ratified. We can do it with our emails, our letters, our confrontations at town hall meetings, our persistence and our votes. This country is too precious to do anything else.
FairTax, The Truth, Answering the Critics hits the book stores tomorrow. Buy one. Buy a few. This week is crucial. We sell enough copies – the book debuts at or near the top – and every single vote-hunting politician inside the Beltway knows that this idea is still alive, still strong, and still something to be reckoned with. If you can't get to a book store, click here for Amazon.com and here for Barnes & Noble.com. You'll have your book by the end of the week.