The Fair Tax and The Lies Opponents Tell

If you pay taxes, then you try to minimize your taxable income for income taxes or your assessed value for property taxes. This is counterproductive to a growth economy, and also leads to an underground economy and much fraud. The Fair Tax taxes consumption. With a Fair Tax, frugality is rewarded.

There are many half-lies about the Fair Tax – the most prevalent is omitting a discussion of the prebate. Most detractors tell you that it is a regressive tax which will hurt the poor and elderly the most. The prebate corrects that such that all truly poor and low-income elderly will pay no tax at all. The prebate refunds the sales tax up front up to the poverty line. Another lie is that the Fair Tax adds another tax onto existing taxes. The Fair Tax repeals the 16th Amendment, replaces Federal payroll taxes - including F.I.C.A. Social Security and Medicare taxes – and ends capital gains taxes and inheritance taxes. If you live in one of the states with no income tax, then you will get 100% of your pay on payday. The Fair Tax is also “progressive”. The person who spends only $1,000 will pay only $230 (and get it back with the prebate) and the person who spends $1,000,000 will pay $230,000. So the “rich” who the United States has “rewarded” more will have to pay more.

Many who criticize the Fair Tax – even commentators - have never read The Fair Tax or its sequel. In both these books the authors counter arguments brought up against the Fair Tax while explaining how it works.

If you still dislike the Fair Tax, then keep paying taxes every payday; keep up with changes to the 77,000-page tax code – or pay someone else to -, keep accurate records and worry about IRS audits.

Just for fun, Google “16th Ratification”, and read about Philander Knox commiting fraud by certifying the 16th Amendment as ratified although less than ½ of the states legally approved rather than the ¾ required.