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To: lucysmom
Well, it may comes as a surprise to you but LESS is LESS so no matter what the actual amount is it will be less than at present. Too bad you can't grasp that paying a lower effective tax rate translates into lower prices. Ask one of your kind is less=less. And you won't have to fill out any tax filings for Uncle, either - which means less work for you with no possibility of being pursued by the government minions when they decide they want to make you prove your innocence.

Also you're quite wrong about tax rates not being lower to have revenue remain neutral. The rates certainly can - and will - be lower. You don't seem to grasp the idea of an expanded tax base taxed at a lower rate bring in the same amount of money. Check some of the economic studies you were pointed to on past threads instead of merely attacking some other aspect of the FairTax.

The GSTs of these other countries seem to be your interest; they certainly are not mine. Your diversionary tacctic will not work since I couldn't care less that you don't realize those are VATs which while it may tax (some part of) consumption does so in a substantially different was and causes cascading tax costs and creates a fraud-prone bureaucratic nightmare in the government "handing back" overpayments (even if they are real). Most countries stuck in the VAT tax form now realize that what it really amounts to is a neat way to balloon corruption and bureaucracy and is easily evaded.

It's truly too bad that you don't have some sort of positive presentation of your preferred tax system to accomplish all that the FairTax does - but then again you seem to realize that there isn't one. It's easier just to attack anything you can think up, isn't it?? A lot of would love to see what sort of tax system in detail you believe this country should have. Be sure and let us know should you think one up.

630 posted on 02/05/2008 7:49:34 PM PST by baybabe
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To: baybabe
Too bad you can't grasp that paying a lower effective tax rate translates into lower prices.

In other words, all you have is theory, you can't give specific examples of what prices will be lower, or by how much.

You don't seem to grasp the idea of an expanded tax base taxed at a lower rate bring in the same amount of money.

What I grasp is that just about every time I make a purchase of a good or service, I will be taxed (tax base). To know what I'm paying in taxes, I would have to keep all my receipts and add them up at the end of the year and compare the tax I have paid with the tax I paid on income. In other words, to compare income taxes paid with FairTax paid is a cumbersome endeavor and would require more time to figure and pieces of paper to keep than the income tax.

The GSTs of these other countries seem to be your interest; they certainly are not mine.

I have an interest in real world examples. What the Australian GST gives us is an example of the economic effect the implementation of a consumption tax has on economic activity. Honestly, I predict the Australian experience was mild compared to what we can expect with the FairTax - 1. because the GST is lower than the proposed FairTax rate; 2. because the GST is a VAT and harder to evade.

Most countries stuck in the VAT tax form now realize that what it really amounts to is a neat way to balloon corruption and bureaucracy and is easily evaded.

VATs exist because a sales tax at higher rates are very difficult to collect. Sales tax evasion exists right now in this country even though rates are relatively low. When rates are as high as the FairTax would be, the motivation to evade is powerful.

It's truly too bad that you don't have some sort of positive presentation of your preferred tax system to accomplish all that the FairTax does - but then again you seem to realize that there isn't one.

Tell you what, give me 20 million bucks and and I'll see what I can come up with.

What I realize is that The FairTax is riddled with flaws that stick out like a sore thumb to those who have not been sprinkled with Fairy dust.

631 posted on 02/05/2008 10:09:27 PM PST by lucysmom
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