Smells like a Miltonian black-hat operation. Or after more consideration is a bit less extremist camo of Friedmanns exact ideas. Note how much the talk about abolishing taxes - strange that the rich and very rich will profit percentage wise vastly more - income tax, estate tax, capital gain - than the rest. If you belong to the middle class or to the poor you are a fool to think about supporting this. It holds a sweet snack in front of a donkey![]()
Last edited by Oleander Ardens; 11-07-2008 at 12:05.
Cicero, Pro Milone"Silent enim leges inter arma - For among arms, the laws fall mute"
Folks, the Fair Tax has a couple of key components that address most of your concerns.
1. Federal revenues should not be decreased as a result of this shift in taxation format.
2. NO OTHER FEDERAL TAX IS LEVIED -- no FICA, no Medicare, no whatever. One source of taxation revenue.
3. There is an individual "prebate" due each citizen at the beginning of the month. This prebate is a direct payment by the government, in advance, for the tax to be paid for spending on basic shelter & sustenance. Yes, the "little guy" would be paying 25% on his rent, but would have already received a check for $X to offset the expected taxation cost of her housing and food. This "prebate" would be the same for every citizen or legal resident.
4. Much of the underground economy would be taxed. Even if the industry in question was illegal, sooner or later the proceeds thereof will be used to purchase legitimate goods and then they'll be taxed.
The Fair Tax goal is NOT to change federal revenue, nor to put a burden on the "little gal." The goal is to avoid a scenario that is confiscatory to ANY segment of society will simplifying the process. This would allow us to downsize the IRS and focus government spending on those programs deemed most necessary by the leadership and the people.
"The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. And that's why it's so essential to preserving individual freedom.” -- Milton Friedman
"The urge to save humanity is almost always a false front for the urge to rule." -- H. L. Mencken
"The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. And that's why it's so essential to preserving individual freedom.” -- Milton Friedman
"The urge to save humanity is almost always a false front for the urge to rule." -- H. L. Mencken
The problem I see with a sales tax based system is when you have a economic slow down you will instantly cut federal revenue, more so then if you tax income.
I oppose it on its regressive nature, I consider that sufficient reason to be against it, especially since a "simple tax system", while psychologically appealing, is equally simple to evade. However you are correct-- this system would, IMHO, only work well when the economy is doing well. Every 20 or 50 years you'd be gutting the government or going into steep deficit everytime an economic downturn hit.
Koga no Goshi
I give my Nihon Maru to TosaInu in tribute.
"The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. And that's why it's so essential to preserving individual freedom.” -- Milton Friedman
"The urge to save humanity is almost always a false front for the urge to rule." -- H. L. Mencken
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