FairTax cut for 2-parent families

WorldNetDaily.com ^ | January 19, 2008 | Howard and Raymond Richman

[Man50D]

During an election season, one of the first losers is the truth. The current misinformation campaign against the FairTax has been particularly virulent. Last month the FairTax was being panned by some columnists as a "crackpot scheme," even though it could be collected exactly the same way as its close cousin, the value-added tax, which is the most successful tax in the world. This month the FairTax is being vilified by various columnists as a tax increase for the middle class, even though it would provide a substantial tax cut for two-parent middle class families. Specifically, in a recent column, George Will asked, "Do you want a president (Mike Huckabee, proponent of a national sales tax of at least 30 percent) pledged to radically increase the proportion of federal taxes paid by the middle class?" Similarly, Time magazine's business and economics columnist Justin Fox wrote a blog piece entitled, "The FairTax and its big break for the $200,000-plus crowd."

The FairTax is a national sales tax that would replace the income taxes, the payroll taxes, and the gift and inheritance taxes. It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption. To help you pay the tax, you would get a prebate check or a debit card credit at the beginning of each month equivalent to the amount you would pay when buying necessities. In 2007, that amount would have been based upon $10,210 spending per adult and $3,480 spending per child.

[Paladin2]

"You're going to spend it?"

As others have pointed out, it's only when you buy a NEW car that you have trouble. Just go get a hooptie and all will be cool.

BTW, what do you think about the tuition exclusion of the FT (where "all goods and services are taxed, without exception")?

[Paladin2]

"Mojave's question to you remains unanswered"

Apparently the more problematic questions remain unanswered as the FT b0ts are not programmed to handle those yet.

[robertpaulsen]

"Getting into a he said/she said 23/30% discussion/argument can be fun"

I fault the Fair Taxers -- they're the ones who called it a national retail "sales" tax.

If they would have called it a national retailer income tax or somesuch, there would be no discussion/argument.

[Paladin2]

I believe that HR25 calls it a sales tax, which it would be without the prebate.

[robertpaulsen]

"BTW, what do you think about the tuition exclusion of the FT"

I think it's just the beginning of "exclusions".

Oh. I predict the "prebate" will be means-tested within the first two years.

[Paladin2]

"But in spite of occasional caterwauling by grandstanding congressmen and senators, the IRS does exactly what it has been assigned to do by Congress"

For those FTers would so hate the IRS - call your congress critter.

[Paladin2]

""BTW, what do you think about the tuition exclusion of the FT"

I think it's just the beginning of "exclusions".

Oh. I predict the "prebate" will be means-tested within the first two years."

Baybabe, what say you?

[Paladin2]

"We can never discount the kleptomaniac vote. People will simply not give up their government check in exchange for lower taxes. Rather they will vote for politicians who promise to shift the burden to others."

Another quote from the link a page back (100 post/page).

Hence the prebate.

[Paladin2]

OOPs, same page, link @ #520.

[groanup]

How’s it worked out for Nauru?

A Micronesian island nation that exports only phosphate? After it ravaged its environment it tried to become a tax have but mainly became a money laundering center. You think that's a valid comparisson? LOL!

[lucysmom]

Merely illustrating that the “tax haven” designation has a sleazy connotation.

While the elimination of corporate income taxes, and taxes on investments would make the US a good place to locate corporate headquarters and park one's money; the sales tax would make the US a bad place to live.

I doubt the FairTax would do much for manufacturing, but would be good for financial services.

[Paladin2]

How's Lucy?

I suspect she couldn't get far with the "...but everyone else's mom says it's OK..." :-)

What doesn't kill ya makes you stronger.

[Antoninus]

I’d take this over the income tax any day of the week.

[afortiori]

It’s not that I doubt the sincerity of the FT’s backers.

I base my trepidation on what is likely to come out of the legislative sausage factory.

[phil_will1]

“Flat tax.....I understand that.”

Which flat tax proposal do you support?

[phil_will1]

“Regardless of the system used 30% is an abomination! Just think THIRTY PERCENT! Almost one third of every dollar in your pocket. And then you still have the city, county and state taxes. Ugh!”

Right! It is much better to hide the true cost of government, than to put it in everyone’s face, wouldn’t you say? The current system is outstanding in that regard.

[phil_will1]

“I therefore respectfully disagree and suggest a FlatTax for your consideration.”

Which flat tax proposal do you support?

[phil_will1]

“Hence all those who live at home in the basement are strongly attracted to the FT (along with drug dealers and others who don’t want to report their income).”

So you think that drug dealers are reporting their income today?

Are you sure you want to stake out that territory?

[phil_will1]

“What makes a tax successful”

“One that politicians love. All sorts of ‘rats want a VAT ‘just like Europe.’”

Bruce Bartlett, one of the most vocal of the FT’s critics, is a strong supporter of a VAT. He would love to add it in addition to the income tax.

[phil_will1]

“...the Fairscammers are so delusionally invested in this specific proposal that they can not see of some OTHER way to achieve all our mutual goals.”

Which alternative proposal would you say is the most politically viable at the present time? Is there a bill in congress which accomplishes what the FT does and which is gathering any momentum at all?