The existing income tax causes prices to be higher in consumer goods and services by an average 22%. This is called embedded tax effects which we don’t see.
What the FairTax does is to say stop taxing everything in the production and service chains and everywhere in the middle and take all the taxation down to the end of the line at the consumer level; Shunt all the tax crap right down to the retail end. Voila 23%!
Problem is people will then SEE what the hell they’ve been paying.
But because it is transparent, every year Congress must vote on the Tax Rate and people will be watching what they do.
As it stands now it’s all smoke and mirrors.
I support the Fair Tax PROVIDED it is instituted by ONE amendment that SIMULTANEOUSLY (1) repeals the 16th amendment income tax, (2) intiates a national sales tax, and (3) prevents any other income tax being instituted by legislation
Otherwise, we are simply instituting another form of taxation, the sales tax, and trusting politicians to eventually get around to ridding us of income taxes.
I do not trust politicians.
You’re post is spot on, K want to reiterate this point:
“Problem is people will then SEE what the hell they’ve been paying.”
The payroll tax is perhaps the largest and most cunning fleecing of a population in the history of the world. Trillions stolen before anyone ever even sees their money. If people had their money and then had to part with it (rather than being stolen before they ever saw it), they would be up in arms.