Posted on 01/12/2008 1:06:53 PM PST by SeekAndFind
Yes, I've read the legislation.
No, I don't listen to the radio show.
No, I'm no stupid, idiotic, dishonest, evil, an employee of the IRS, spouse of an IRS employee, or part of a conspiracy of journalists against the middle class.
Yes, other conservative economists who have asked tough questions about the FairTax warned me to get ready for a gusher of hate mail.
Yes, the fact that the FairTax faction (after reading a torrent of insulting email, that word seems right to me) defaults to abusive speech from the beginning means that they are a movement of zealots with a weak case.
No, my questions are not all answered in the book or at fairtax.org or in the legislation.
No, my questions are not really answered by the emails and posts which I have received. What have been answered are the questions which remind the FairTaxers of other easier questions to are addressed on the web site.
No, the FairTax will not be simple. The debate in response to my latest article proves that.
No, the apologists who responded to me did not even remotely deal with the problem of the interest portion of mortgages.
Yes, I know that that interest isn't supposed to be taxable. But I also know that if all interest remains non-taxable, there will be a massive movement towards discounting house and durable goods sales prices and then making up the difference with high interest rates.
No, none of the fairtaxers seem who wrote to me seem to know that under the legislation, only some of interest is non-taxable.
Yes, that's right the government will decide what a reasonable interest rate is, and then tax you for anything above that.
No, the legislation's choice of how to interest is not actually reasonable at all. It uses the Treasury bond rate, which is very low.
So, yes, you will be paying sales tax, not just on your house, but on a substantial part of your interest as well.
Yes, this makes the effective tax rate on houses (and cars, and washing machines, etc.) and anything else bought with borrowed money, higher than on goods not purchased on credit.
Yes, this hurts the poor.
Yes, this punishes people with sub-prime mortgages.
Yes, it means that every time the Fed meets, it finds itself not just setting monetary policy, but tax policy as well.
No, this is not just interest about the interest problem. I could go all day on about this plan. Employee discounts, tipping, taxing churches: every element of this plan is fraught with complexity. The fact that the FairTaxers shout down questions like this tells us a great deal more about them than it does about the proposed plan.
Yes, I'm done for now.
“Under the Fair Tax....you don’t have to pay if you don’t want to....just don’t buy anything new!”
Wow, you’re right! The Fairy Taxers could just eat used food!
That goes nicely with “used undies” and used “TP”
I am a Grandfather X2 and I will never understand this.
The FT is a giant Red Herring - and designed to totally screw the baby boomers about ready to retire.
The federal budget divided by the population count.
If non-specified, business will simply give big discounts on price and then make up for it in the interest calculation, as interest is deemed non-taxable. These calculations are highly malleable and can become very complex. Homes will be financed with low-ball prices and high interest rates, and sup-prime mortgages will skyrocket.
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Hey Brainiac ,, if you’re willing to sell me a new Cadillac for $12,000.00 at 100% interest for 72 months or a new 3000 sq/ft home with a pool and a 3 car garage for half price I’LL TAKE IT...
And before the first payment is due I’ll refi at my local CU at 6% and pay you off... (businesses will refi at GE Credit or simply float a bond issue).
You have no faith in the free markets correcting for such shenanigans do you? I guarantee that Boeing will sell only one plane at 75% off before they get burned and never do that again.
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Does it apply to non-profits?
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Without having to worry about losing their tax exemption churches will regain freedom to speak to the issues of the day ,, they will also have greatly increased donations as their parishioners will become wealthier ....
It should be noted that tax ememption for property tax and such is not a federal issue and would not change...
The FairTax would be good for non-profits.
I'm a boomer who has already retired and it sure a H*LL wouldn't screw me!
I've run my numbers on the FairTax Calculator every way I can think of and have yet to find a scenario where I don't come out better under the FairTax than I do under the present system.
Give it a try in the privacy of your own home with your real numbers and see how YOU would fare under the FairTax.
When you challenge the problems with the fairy tax they seem to get their used undies in a twist.
Churches would pay the FairTax on all their purchases that weren’t for resale. Kotlikoff estimated that non-profits, including churches, would have paid ~$36 billion in FairTax last year. A church could pay taxes now and speak about whatever they wanted.
Any "problems" associated with the Fair Tax are overwhelmingly eclipsed by the problems associated with the present taxation system.
but getting rid of the graduated income tax remains a freedom issue....seems like all some can do is whine about the cost..
That is EXTREMELY well said and absolutely true!
Bears repeating often!
Yes indeed!
We will never again be a truly FREE people for so long as we continue to abide the Communist inspired progressive income tax and the IRS!
Yes, services are subject to the FT, as well.
I wouldn’t have a problem with what you are saying. Sounds good to me.
B.S. and who cares?
Churches would pay the FairTax on all their purchases that werent for resale. Kotlikoff estimated that non-profits, including churches, would have paid ~$36 billion in FairTax last year. A church could pay taxes now and speak about whatever they wanted.
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Sure they could renounce their tax exempt status and be free (This is a freedom issue) today ... but then they would be paying Income Tax... Did Kotlikoff also state that the same $36B is paid TODAY by non-profits in the embedded taxes on the purchases they make?? If not he is distorting the argument by discounting the current (hidden) taxation...
I am amazed at the lengths people will go in an attempt to retain the yoke and whip of the Income Tax.
Sorry Lewis that you don't understand freedom.One of us doesn't or we simply define it differently.
The fairy tax would royally screw anyone making over poverty level and under 200k.
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Since thats probably 90%+ of the population I’d have to say that they are paying most of the taxes now...
What’s your basis for that assumption?
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