The 'Fair Tax'

American Chronicle ^ | April 17, 2006 | Congressman John Linder

[Little Ray]

Ummm, you're missing something - the providers fo the goods and services are not being taxed so the price of the goods and services theoretically go down. You are taxed 30%, but the cost of the goods and services are supposed to be substantially lower, making the price with the tax roughly the same.
It's still better than bending over and taking it every 15 April.

[pigdog]

HR25 eliminates the income/payroll tax (and others), the IRS, and requires the income tax records to be destroyed.

Many generations ago when England had its first income tax and then eliminated it and burned he tax records people danced in the streets around the bonfires.

Many years later the populace forgot how bad the income tax was and allowed themselves to be enslaved again and they now have a regular Euro-gaggle of taxes.

Let's hope WE remember.

[balrog666]

Ummm, you're missing something - the providers fo the goods and services are not being taxed so the price of the goods and services theoretically go down. You are taxed 30%, but the cost of the goods and services are supposed to be substantially lower, making the price with the tax roughly the same. It's still better than bending over and taking it every 15 April.

Yes, some prices will go down 8-9% pretax. And some won't. And then the 30% tax is imposed on the new price.

Contract-based prices won't change. In particular, rent won't go down. What will you do when your rent goes up 30% in one day?

[pigdog]

Then you should spend some quality time on the FairTax website finding out the large benefits to those under 200K.

[Little Ray]

It won't - unless they can get at a mortgage.

[pigdog]

Why don't you spend some time investigating the effects of the FairTax by use of the FairTax website instead of trying the Chicken Little game of attacking the FairTax with nonsense?

[newguy357]

A new car would have this huge sales tax attached to it but a used one none. Same with everything!

That would be the initial stimulus. You overlook the fact that this disparity would result in an increase in demand for used merchandise, which would result in an increase in cost for this same merchandise. The resulting smaller cost difference would not be nearly large enough to warrant your worries.

[ovrtaxt]

You're already paying 23%. The Fairtax just collects it all out in the open instead fo through withholding and hidden costs of the goods you buy.

These mechanisms are the novicaine that keeps you from being outraged about your 23% rate. Precisely why the Fairtax is good for forcing spending cuts on the politicians.

[ovrtaxt]

The fairy tax should be renamed the "Shift 100% of all taxes to the consumer" tax.

They already are.

[AFreeBird]

Perhaps 23% is too high, but when you consider that hidden taxes will also disappear, then compared to what you're paying for Fed, State, local & hidden taxes now, it might end up being less. In any event as Alexander Hamilton pointed out, such taxes, like water will find their own level.

Anything is better than the system we have now and I think this plan is better than most other proposed alternatives.

[newguy357]

The fairy tax should be renamed the "Shift 100% of all taxes to the consumer" tax.

100% of the taxes already are shifted to the consumer, you just don't see it so directly. That's econ 101. The advantage of the "fair tax" is that all these hidden taxes become visible--a first step in upsetting enough people to encourage a movement against bloated, unnecessary government.

[Element187]

after reading your post...: I'm completely baffled at the lack of comprehension and understanding of 'Fair Tax' on the part of some freepers.

Sorry to bust your bubble, the fair tax book (the new softcover edition), has dispelled any and all critics to the fair tax ... so again, until you have actually read the book, I do not think your comments on Fair Tax should even been taken seriously... unless you are happy with the federal government raping tax payers.

[Doctor Stochastic]

If I buy a "used" home then it's tax exempt, but a new home is taxed at "23%" (really 30%?)

The bureaucracy needed to determine the difference between "used" and "new" and between "wholesale" and "retail" would easily dwarf the IRS.

[griswold3]

If we start at 23% and have immediate "control" over Congress and their spending, WE could determine the rates on a "pay as you go" basis. No forced collection and no more "underground" (37%) economy.
One thing that is left out of the equation that no one has mentioned is: The government collection fee (IRS) is 34%. (34 cents of every dollar is used by the IRS) & We could eliminate the IRS and let them fill all the new INS positions.

[AFreeBird]

Neither FairTax nor Flat Tax, or any other meaningful tax reform, will occur in either of our lifetimes.

You're right; why bother; never gonna happen; game over man; no need to even try.

Yep, the entrenched and powerful have you right where they want you. Cowering in the corner.

Remember back in 94; the contract with America, when the repubs actually had something resembling a spine, and they threatened to shut down government?

Imagine what would happen if Americans said - ENOUGH! - next April 15th, and said we're going to shut you down, and didn't file and didn't pay?

Actually, if we started now instead of waiting, it might actually happen in all our lifetimes.

[AFreeBird]

The fairy tax should be renamed the "Shift 100% of all taxes to the consumer" tax.

Just who do you think is paying them now? Think business doesn't pass on its tax burden to the consumer?

I've got a bridge in Brooklyn you might be interested in.

[ovrtaxt]

You are extremely ignorant of the free market, and the forces of competition.

[Your Nightmare]

100% of the taxes already are shifted to the consumer, you just don't see it so directly. That's econ 101.

Really? My Econ 101 textbook says the burden of corporate taxes could be borne by consumers, labor, or the capital holders and that no economist is absolutely sure who pays them. My Econ 101 textbook also states that prices in a market economy are a factor of supply and demand, not costs (or taxes).

[balrog666]

Oooooooooooooooooh, devastating! How will I live with myself now?

Do you pay rent? Do the businesses you shop at pay rent? Do you even know what rent is?

[ovrtaxt]

The bureaucracy needed to determine the difference between "used" and "new" and between "wholesale" and "retail" would easily dwarf the IRS.

We do it all day long at the state level in FL. Our sales tax bureaucracy is not a big deal- certainly more efficient and much smaller than Federal.