Flat Tax Vs. Fair Tax Vs. Herman Cain's 9-9-9 Plan

Forbes ^ | 10/13/2011 | Nathan Lewis

[longtermmemmory]

No, because as a practical matter everyone will have to register their “family” unit. Also, the law is silent as to legal status. Thus taxpayers will be footing the bill for illegals.

The proposal is not a zero sum game.

As for the “any person” it means “any person.” This includes any entrepenue garage effort or kid with a lawnmower. Suddenly Jr. will have to register with NuIRS because they are selling lawn cutting service.

It is endless considering all the minor transactions that occur, sell a firearm in a private sale? you must be registered. Rent a room to a college student? you must be registered. Work as a handyman doing odd jobs? you must be registered.

In order for the government to assure all taxes are collected it will by its very nature have to be invasive. We have only discussed what is in the proposal under HB 25. it does not take much to go from voluntary to involuntary.

The proposal also fails to consider the lessons from universities that accept federal money. Once you accept the prebate for “government approved necessities” you are easily subject to their rules. Accept prebate? you must buy government approved health insurance from Obamacare, inc. Accept prebate? you may only buy goods from the government approved list.

[Armando Guerra]

I definitely think that transparency is key. Unfortunately, calculating it is the tough part. Corporate tax (and the cost of complying with them) is built into the cost of every item and passed on to the consumer. A label as to the amount being passed on would clear the way for a FairTax because people would see the embedded cost right there. If it also had to include the compliance cost then you would probably get a rate higher with the current system than under the FairTax. I used to be a Flat Tax proponent and still have the Heritage Foundation booklet within arms length. The problem is seeing what happened after the Reagan reforms. The rates were flattened and deductions were repealed but look what has happened to that now. It has become so convoluted with specialized deductions and complex rates that you can't tell what you really pay. Yes, a 23% or 30% rate can also be raised but I think that it would actually be more difficult. The rate is right on your receipt and people already are complaining it would be too high. Transparency is what has sold me. I am not convinced that keeping the current system and just flattening the rates will solve that. I want people to be able to see taxes being paid every day and throughout the day so they know how much the monster is truly feeding.

[Bigun]

YOU do not know, even remotely, what the heck you are talking about and I have no more time to waste on trying to educate you! Most people can read and interpret the English language but you are an obvious exception.