The tax code has tens of thousands of pages because our government is corrupt, and the tax code is the weapon of choice. Votes can be bought and lucrative favors and post-government employment obtained with the “loopholes” in the tax code. The problem with getting rid of loopholes is the loophole which purchased your vote is precious to you. You may own your home because you want a deduction for the mortgage interest that you pay. It doesn't matter to you that renters must subsidize you and the real estate industry. Is that “fair”? Those generous folks who give to charities get a deduction. It doesn't matter that donors to non-profits who hate America get the same deduction.
If the Politburo – those with governmental power – simply removes some loopholes, then we have a flatter tax. We still have an Internal Revenue Service – expanded to tax those who refuse to accept PPACA. We still have a huge tax code. We still tax income.
Except for a few, we try to minimize the amount of tax that we pay. To do that we must minimize our taxable income. Do we really want to do that?
Instead of taxing income why not tax consumption? Then you decide where and when to pay taxes. The Fair Tax ensures that those “poor” and elderly who have incomes below the poverty line will pay NO tax. Those currently outside the tax system – drug dealers, prostitutes, black marketeers, etc – will pay a tax every time they purchase new things. The “rich” will still pay more than anyone else assuming that they continue to spend. Consumption taxes encourage frugality, so that $100,000 car or that $1 million third home on the beach or in the mountains doesn't look as good with a sales tax added. I seriously doubt that Warren [Buffet] and Bill [Gates] will radically change their lifestyle!
Taxes are too high. The income tax and fiat money have allowed the federal government to expand. It is almost impossible to cut spending – even at the edge of the fiscal cliff. Radical surgery will be required to fix the problems, but Romney is correct: the takers will not vote for it. The sheeple – those who believe what politicians say – think that the status quo can be permanent! Ignorance is bliss!
Hilarious that you would say ignorance is Bliss and be so ignorant of what's in Fairtax
ReplyDeleteBut I cant blame you, you havent read the fine print or the report by President Bush Tax Advisory Panel -- a report that Fairtax spokesmen admit is factually correct.
You assume that they tax personal retail sales and nothing else. Actually, that's only a small part of it. They have massive OTHER taxes. For example, out of 3.4 trillion in an estimated year, Fairtax would have well over 2 trillion from these OTHER TAXES.
That are these other taxes? Well, the fact you don't know shows that Fairtax was rather slick explaining it. See, they tax all city county and states. Say you live in StLouis. Your city council would have to send in about 15-20 million dollars, as taxes on wage and pension expenditures. See, all government operating expenditures are taxed. yes, they are. It's in the legislation, and President Bush tax panel reported it, and Fairtax spokesmen admit it.
Now, we are not finished. St Louis COUNTY would have to pay 30-40 million. And the state of MO would have to pay about 800 million- 1.2 billion.
You have to read the fine print. And remember, this is on top of the personal tax. Fairtax has a tax on "natural persons" and a much larger tax on city county and states. Again, it's in the fine print, it's in the Bush Tax Panel report, and Fairtax leaders admit it. Also sworn testimony to WM Committee last summer highlighted it. Fairtax leaders have never refuted it, or even disagreed with it. They defend it.
SO, where does ST Louis city and county get the money? And the state?
Read the fine print in Fairtax documents! They tell you. They "assume" city and states will have to raise their tax rates.
http://fairtaxgoofy.blogspot.com/