FairTax rally draws thousands

Missourian ^ | June 14, 2009 | Furqaan Sadiq

[EternalVigilance]

If hyperinflation takes hold, it isn’t going to matter much what kind of tax system we have, any more than it would matter what kind of car you had after a ninety mile per hour head-on collision. Everything will be destroyed and all the passengers will be dead.

[greeneyes]

The fed is already monetizing the debt. Gas prices are up again, and It looks to me like we are already well on our way to hyperinflation. Toilet paper at the local walmart is up 38% over what it was in January for example.

So if our goose is cooked and it really doesn’t matter what tax system we have, I might as well quit trying to understand the fair tax cause we’ll all be dead anyway, and I will have wasted my final days reading about taxes instead of enjoying my family.

Thanks again for explaining some of the issues. I’m going to sign off now.

[lewislynn]

As businesses include all raw material costs, manufacturing, labor, transportation, storage etc. throughout the supply chain all the way to the retail end of the supply chain, the federal government income tax code taxes every part of the chain, and the total adds up to an average of 20% to 22%.

Hostage is or was probably a government employee and doesn't comprehend that taxes are on profits not on all income. And that it's mathematically impossible for them to compound through the supply chain. Following the Hostage/Fairtax illogic the taxes could compound to 100% and more.

Tax:

Raw material...$100
10% Profit $10
35% tax = $3.50

Manufacturing...$100
10% Profit $10
35% tax = $3.50

Transportattion...$100
10% Profit $10
35% tax = $3.50

Storage...$100
10% Profit $10
35% tax = $3.50

Retail= costs from total of the above ($400) + 100 markup (Including $90 overhead) =$500
10% profit
35% tax = $3.50.

Total retail sale $500
Total profits $50 (10%)
Total tax paid $17.50 (3.5%)

Total percentage price can be reduced at retail.... 3.5%($17.50 / $500)

Note that xcamel, lewislynn and 3 or 4 others are always on these FairTax threads trying to bash it and cause uncertainty about it.

The opposite is true

They have an agenda.

The agenda, if you want to call it that is accuracy. Unfortunately for fairtaxers like Hostage it exposes their lies and ignorance.

BTW, the total payroll tax, including self-employment tax percentage of every working person in the country is 15.3%...TOTAL. Not that it matters because it would mean if they used that 15.3% for price reduction they would be liars about 100% paychecks...So which is the lie? 100% paychecks or 23% price reductions.

Replies like this is the reason Hostage took the coward way out by not putting my name in the "to" box.

[lewislynn]

Each year SSA will tell Congress what portion of all revenues will be needed to fund Social Security pensions, etc. And each year Congress will vote on the NRST rate.

Hostage is lying once again. Here, from the Fairtax bill HR25

`(d) Old-Age, Survivors and Disability Insurance Rate- The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.

`(e) Hospital Insurance Rate- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.

The text is very clear. The Fairtax legislation authorizes (Obama's?) unelected SS bureaucrats (maybe even a Czar) to raise the Fairtax rate every year.

There would be no debate. There would be no vote from Congress. There wouldn't even be congressional oversight. Not even a signature from the president