The Fair Taxers Are Rallying, Too

By TarHeel85 on April 14th, 2009 at 11:26 am

This is pathetic. The fair tax idea is a scam for the rich. And these tea parties are just a bunch of upset republicans who think they’re rich enough to complain about taxes. I bet you that 99% of the people who are ‘tea-bagging’ this week will be getting their taxes CUT by President Obama. And for the 1% of those who make enough to have their taxes increased, someone should tell them that Obama is setting their taxes back to the same rate they paid under their God – Ronald Reagan. And if this is about bailouts? Where were these ‘tea parties’ when President Bush and the Republicans began these bailouts last fall? This is why the Republican Party is in it’s current state. Because of dumb, ignorant sh*t like this.

Ok I feel better.

By Ian Reply on April 14th, 2009 at 11:52 am

Here is why the FairTax MUST replace the income tax. It’s:

• SIMPLE, easy to understand
• EFFICIENT, inexpensive to comply with and doesn’t cause less-than-optimal business decisions for tax minimization purposes
• FAIR, loophole free and everyone pays their share
• LOW TAX RATE, achieved by broad base with no exclusions
• PREDICTABLE, doesn’t change, so financial planning is possible
• UNINTRUSIVE, doesn’t intrude into our personal affairs or limit our liberty
• VISIBLE, not hidden from the public in tax-inflated prices or otherwise
• PRODUCTIVE, rewards, rather than penalizes, work and productivity

Its benefits are as follows:

For individuals:
• No more tax on income – make as much as you wish
• FairTax is paid on retail goods and services when purchased new, not used

• You receive your full paycheck – no more deductions
• Every household receives a monthly amount, or “prebate”
• “Prebate” is “advance tax payback” for monthly consumption to poverty level
• FairTax ensures poverty protection, being less regressive than income tax

• Reduction of pre-FairTaxed retail prices (due to reduced costs; increased competition)
• 29.9% mark-up yields 23% FairTax portion of new price tags
• Immediate price increases accompanied by increased household income
• FairTax portion of new prices reveal true cost of gov’t to consumers

• FairTax is captured on illicit forms of income, when spent
• Parasitic income tax filing industry eliminated
• No double taxation on goods and services
• No more IRS or FILING OF INCOME TAX returns
• Savings is bolstered with reduction of interest rates

For businesses:
• Corporate income and payroll taxes revoked under FairTax
• Business compensated for collecting tax at “cash register”
• No more tax-related lawyers, lobbyists on company payrolls
• No more embedded (hidden) income/payroll taxes in prices
• Reduced costs. Competition – not tax policy – drives prices
• Off-shore “tax haven” headquarters can now return to U.S
• No more “favors” from politicians at expense of taxpayers
• Resources go to R&D and study of competition – not taxes
• Global “free (and equitable) trade” becomes possible for currently-disadvanted U.S. exports
• US exports increase their share of foreign markets

For the country:
• 7% – 13% economic growth projected in the first year of the FairTax
• Jobs return to the U.S.
• Foreign corporations “set up shop” in the U.S.
• Tax system trends are corrected to “enlarge the pie”
• Larger economic “pie,” means thinner tax rate “slices”
• Initial 23% portion of price is pressured downward as “pie” increases
• No more “closed door” tax deals by politicians and business
• FairTax sets new global standard. Other countries will follow

The income tax system must ultimately fail, if for no other reason than that Washington politicians cannot seem to wean themselves from being “sucked down the spending hole” while seeking ways to hide the magnitude of taxation from those who ultimately pay for all of it – every working American. It’s well past time to scrap the tax code and pay for government the way that America’s working men and women are paid – when something is sold.

By Silent DoRight on April 14th, 2009 at 12:30 pm

The Fair Tax might be “fair,” but like many things it looks better on paper, rather than in practice. First, and perhaps the largest issue to consider, is the fact that only “new” products or services will be taxed. This will instantly create a market for every “used” item out there and will kill the sales of “new” products. Why would you want to buy a “new” 2010 Ford Mustang when you can buy a “used” 2009 Mustang and not pay the “Fair” Tax. Second, we would need new government oversight to identify and define “new” versus “used.” The red tape created here will make the current tax code look like a children’s book. There are many more, but I think you get the picture.

By Joey Jo Jo Jr. Shabadoo on April 14th, 2009 at 12:42 pm

Wow, nice cut and paste. Almost makes me want to:

1) increase my current federal tax obligation along with everyone else in the middle class

2) double tax my current savings (since they’ve already been taxed once)

3) not be able to sell my home (that 30% extra is a stinker) and not be able to deduct mortgage interest.

4) sink the ‘ole US of A once and for all when we all start participating in a new underground economy. Chaos, yay!

By TarHeel85 on April 14th, 2009 at 1:46 pm

Pres – I see why people called Bush a liar, because he did. Time and time again. But you just called your new President a liar without any justification. THAT is ignorant.

By Pres on April 14th, 2009 at 5:15 pm

Tarheel,
You do have a point except for Obama saying he would cut spending, not put any lobbyists in his cabinet, allow a week for a bill to be read and understood before he would sign it, etc., etc.

By RallyThis on April 14th, 2009 at 6:00 pm

The FairTax is a 30% exclusive sales tax and you will not have a larger pay check, The employer gets to keep the part you currently pay toward taxes, Should read Boortz straightening out some confusion page. Here is a little of what Boortz explains and I think this sums it up pretty good -( “Does this 22% include the income and payroll taxes that are paid by employees? Yes, it does. So … what does this mean to your paycheck after the FairTax becomes law? When the FairTax is implemented, and when business and personal income and payroll taxes disappear, your employer is going to have to make a decision. He will either take some or the entire amount he had been withholding for federal income and payroll taxes and add it to your weekly check, or he will readjust your pay figures so that your entire paycheck will be equal to what you used to call “take home pay” before the FairTax.”)– http://boortz.com/nuze/200509/09152005.html

By NoFairTax on April 14th, 2009 at 6:25 pm

37% of the goods currently sold in the USA are imported. That means that there’s no embedded taxes in them, thus no chance of them coming down in price. And when you add the 30% (exclusive rate) tax to them, that means that almost 40% of the goods sold in the USA will increase in price by almost a third.

I do agree that in the long run that this would mean manufacturing jobs coming back to the USA, but how long would that take? I’d say at least a year or two for most industries, possibly longer for others…thats a long time for the middle class consumers to take it up the tailpipe in the meantime. And even then, would US manufacturers be able to produce goods as cheaply as they are in China and southeast Asia, where people work for dollars a day (if they’re lucky)?

There’s a lot of other flaws with the ‘Fair’Tax. For instance,it would heavily penalize those with steep medical bills, and it’s tax-free status for pre-owned items would be the nail in the coffin for the US auto industry. Plus, what is ‘fair’ about a celebrity buying a multi-million dollar estate tax free when a family that rents has to pay an extra 30% on their rent EVERY month? And the unemployed would be getting another check from the government, of our hard-earned tax dollars every month.

By NoFairTax on April 15th, 2009 at 9:47 am

I’m no fan of the current system, but the ‘Fair’tax clearly isn’t the answer. Just because someone opposes the ‘Fair’Tax doesn’t mean that they support the current system – it just means that they can think for themselves.

The ‘Fair’Tax is designed to be revenue neutral, which means that the government would collect just as much tax money with the ‘fair’tax as it does now! Under the ‘fair’tax the poor would pay less due to the prebates, the vast majority of the the rich would pay far less in tax than they do now, and businesses would pay zero federal tax. That means that the middle class would be paying more, because the difference has to come from somewhere.

Bush’s Tax Advisory Panel’s study found that the middle class’ tax rate would actually go up under the ‘fair’tax – although they did slightly alter it by factoring in fraud and eliminating the government taxing itself (its unrealistic to claim that those changes wouldn’t be necessary).

Like Ron Paul has said, our real tax problem is with runaway government spending. This has been a trend ever since Reagan took office – although now massive government spending is one of the main things ‘priming the pump’ of our economy, and now is NOT the time to cut government spending. In general, we do need to cut it considerably though, once the economy is healthy again.