Why Democrats should love the FairTax

Boston Globe ^ | February 24, 2008 | Laurence Kotlikoff

[Man50D]

SUPPOSE A presidential candidate proposed taxing wealth and using the proceeds to reduce taxes on workers and provide a rebate large enough to cover taxes paid by poor workers. Such a candidate would be hailed by the left and reviled by the right.

Thus, it's remarkable that so many Democrats, with the exception of presidential candidate Mike Gravel, oppose the FairTax and so many Republicans, particularly presidential candidate Mike Huckabee, support it. In fact, the FairTax, which replaces all federal taxes with a federal retail sales tax and provides a rebate, represents a way to tax wealth, reduce taxes on wages, and disproportionately redistribute money to the poor.

A sales tax effectively taxes wealth?

It does. When we buy goods and services in a sales tax world, part of the payment goes to sales taxes. So we end up with fewer real goods and services.

Take Mr. Megabucks, who is sitting on $65 million and wants to buy a jet like Oprah Winfrey's - a 10-passenger, $50 million Global Express XRS. Under the FairTax, the jet costs him an extra $15 million because of the 30 percent sales tax. Mr. Megabucks gets the jet, but the extra $15 million, which he had budgeted for Beluga caviar, Dom Pérignon, and other flight snacks, goes to Uncle Sam.

[xcamel]

I assume you have a link to the transcript of this in its original form?

or is it just another “rabbit out of the hat” ?

[groanup]

I assume you have a link to the transcript of this in its original form?

or is it just another “rabbit out of the hat” ?

You can start here:

Bill Archer 3rd para. from the bottom.

Now where are your anti FairTax economists?

[xcamel]

5.4 billion / 220 million = 24.55 hours (by hand, without modern software)
232 billion / 220 million = 1,054.54 $/hr - I don’t think so.
There is no “average taxpayer”
$60 (1920) = $662.31 today’s dollars

Just to hit a few points.

[xcamel]

A blog isn’t a transcript. Try again Mr Bunny.

[longtermmemmory]

nonsense, you have people avoiding mere single digit sales taxes using the internet.

The same will be done as sure as night follows day when it is 23% or 30%.

[groanup]

A blog isn’t a transcript. Try again Mr Bunny.

You wanted links, you got one. Now it's your turn to do some work jack rabbit.

I know Princeton Economics is a big word but try real hard, OK?

[xcamel]

Read post #101, if you can, and try to let the poster speak for themselves for once, if you can, which I mostly doubt, unless , as per usual, you are trying to Jack the thread, which allways seems to happen when you're getting your butt kicked.

[groanup]

The goofy-doofy fair tax dip$hits

Are you expecting us to retaliate so you can join your fellow income tax preservationists in accusing us of personal attacks? Or, more likely, are you just that common and uneducated?

[Nervous Tick]

>> are you just that common and uneducated?

Yeah, that one.

Good-bye.

[groanup]

I read and answered post 101. I'm trying to figure out who cares about post 101. It has been answered and put away, thank-you very much. If you want to learn something look at the links I followed up with. Of course you want to learn something, don't you?

LOL.

[Danae]

LMAO

[ovrtaxt]

That effect is so obvious it’s painful. Who wouldn’t relocate to America if it became the most amped up tax haven in history?

[xcamel]

Provide a link to the survey data or get your little buddy to retract the statement. No proof - didn’t happen - more FT smoke and mirrors.

[xcamel]

No proof, never tried, no hard data, pure speculation, 36 countries already better at it with flat tax systems.

Next?

[lewislynn]

The author does not know the FairTax very well.

LOL! He is THE Fairtax economist.

Some think it's a barely known hick radio talk show host, but no, it's definitely Kotlikoff.

[ovrtaxt]

You’re a businessman too, you know better and so do I.

[xcamel]

I know better than listen to the snake oil, pitchfork and torch bunch. You should too.

[groanup]

36 countries already better at it with flat tax systems.

What is your idea of a flat tax system? Has America ever had one?

[xcamel]

You still have a statement you backed to come clean on. You even going to try?

[Bigun]

The Tax Foundation says that for 2007 the number is $305.30 Billion. I'm not going to argue with them but you can if you want.

Total Federal Income Tax Compliance Costs, 1990-2015