The case for the Fair Tax; the time is NOW

Truth Detector

Truth Detector

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As a former flat tax disciple, I have been convinced that the Fair Tax will have a much better result in that unlike the flat tax, this tax will hit the underground economy as well.

I read a great book I highly recommend called The Fair Tax Solution by Ken Hoagland. It is an easy read and short book that makes the compelling case for a consumption tax.

Both taxes do away with the current abomination called the Tax Code which is over 70,000 pages of lobbyist favored politically motivated power grabbing gobbledygook.

If you want to eliminate favoritism, cronyism, lobbyists and corruption, then you will be for this tax.

With this tax, there are no forms to fill out and the $300 billion spent annually in compliance with the tax code would be re-directed to more productive uses that would create more jobs.

In addition, there would be HUGE cost savings for the Federal Government. We would not need the massive bureaucracy called the IRS and Congressional staffs whose primary job is creating tax laws and loopholes would be significantly reduced.

My previous issues with a consumption tax were its impact on low income earners. But Hoagland addresses this through a pre-bate program that is calculated based on an annually adjusted federal poverty level income basis.

The Fair Tax rate is 23% charged on all consumption. But before you say yikes, imagine that your take home pay will significantly increase in that there will no longer be a FICA tax or income taxes taken from your paycheck. Your decisions will affect how much tax you pay by what you decide to buy.

The best part is that there are hundreds of millions of dollars in an untouchable underground economy that do not pay their fair share who now would be paying every time they made a purchase. Millions of foreign visitors would also be contributing with their purchases. And best of all, hundreds of billions of dollars now removed from the economy in code compliance and enforcement would be released to more productive uses.

Read the book, become informed and then join me in pressuring your elected officials to create this Fair Tax and eliminate the abomination called the Tax Code and the IRS.
 
Youre absolutely right we need a fair tax where the USA largest corporations finally start paying Federal income tax and guys like mitt romney pay more than 13% on 200,000,000 incomes. I paid a higher percentage of fed tax than he did and I make peanuts
 
I am a retired tax lawyer/CPA, with no financial benefit from ANY tax system. For supporting details call 423-532-7337.

FT is Karl Marx on steroids AND a Bernie Madoff financial scam.

The FT proudly advertises that it INCREASES WELFARE. The Prebate is advertised as merely repaying the poor for any FT they pay, but actually would pay them far more than any FT they might pay and also gives the working poor free SS/Medi.

The FT is a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our 70% retail-sales-sensitive economy. 40% = 30% FT + e.g., 10% S/L - 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion and ZERO intentional reduction in spending).

IN ADDITION to that 40-70% tax, the FT contains several HIDDEN TAXES. FT’s 30% rate is really 42+%; the 12+% is hidden by having fed + S/L govts paying FT – they must get that money from you. The initial 30% rate is 1-5% short. The FT causes the fed budget for SS to rise by 1) SS COLA of almost 30% and 2) fraudulent new SS benefits.
The NEW IRS will be worse, more invasive, than today’s IRS – we may well have to file an “Annual FT Summary”.

We may well wind up with BOTH a NEW Income Tax AND the FT.

What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate.
Call your representatives in Congress and let them know that this is what you want.
 
YANKEE said:
I am a retired tax lawyer/CPA, with no financial benefit from ANY tax system. For supporting details call 423-532-7337.

FT is Karl Marx on steroids AND a Bernie Madoff financial scam.

The FT proudly advertises that it INCREASES WELFARE. The Prebate is advertised as merely repaying the poor for any FT they pay, but actually would pay them far more than any FT they might pay and also gives the working poor free SS/Medi.

The FT is a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our 70% retail-sales-sensitive economy. 40% = 30% FT + e.g., 10% S/L - 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion and ZERO intentional reduction in spending).

IN ADDITION to that 40-70% tax, the FT contains several HIDDEN TAXES. FT’s 30% rate is really 42+%; the 12+% is hidden by having fed + S/L govts paying FT – they must get that money from you. The initial 30% rate is 1-5% short. The FT causes the fed budget for SS to rise by 1) SS COLA of almost 30% and 2) fraudulent new SS benefits.
The NEW IRS will be worse, more invasive, than today’s IRS – we may well have to file an “Annual FT Summary”.

We may well wind up with BOTH a NEW Income Tax AND the FT.

What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate.
Call your representatives in Congress and let them know that this is what you want.
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I didn't know Karl Marx used steroids!
 
The author claims that the FT takes care of the poor via the Prebate. They usually tell us that the Prebate make sure that the poor pay no FT - as if we all agree that the poor should NOT have to contribute to the cost of the military AND they should not have to contribute to their own SS and Medicare. The big lie is that the FT goes much further and actually gives the poor a BIG WELFARE INCREASE.

The FT’s Pebate is a WELFARE check that leaves many dependent upon the govt for a large portion of their monthly income – a very bad idea. The Prebate is explained as being needed to insure that the poor pay no FT, merely assuming that we all agree with that goal. Further analysis exposes that the Prebate goes much further – it gives the poor a large FT PROFIT.

The Prebate gives every family a monthly check purportedly to cover the FT they would pay on “poverty level purchases” as defined by the US HHS Dept.’s Poverty Guidelines and makes “adjustments” to them. The Prebate next “assumes” that EVERY family of each size spend a certain amount of dollars ($11,490/adult, $4,020/child) which is then multiplied by 23% (the tax-INCLUSIVE rate) to yield the Prebate that will reimburse all of that FT ($2,642/adult, $925/child).

To illustrate, assume there is a family of 5; Husband, Wife, 2 kids, and the Wife’s Sister lives with them. They would be “assumed” to spend a total of $42,510 ($11,490 x 3, plus $4,020 x 2). Their Prebate would be $9,777 ($42,510 x 23%, the “tax-inclusive” FT rate). The $9,277 Prebate is calculated to pay back 100% of the FT THEORETICALLY paid by the family, but as shown below is greatly OVERPAYS that THEORETICAL FT paid by the family.

Point 1. The FT corrects for the “Marriage Penalty”

It does so by “assuming” extra spending of $7,470 and adds to its Prebate by $1,718.

The problem is that there IS NO “Marriage Penalty” in the underlying HHS Guidelines – they were developed as impervious to the age of the person. They provide $11,490 in spending for the 1st PERSON in the household and $4,020 for the 2nd PERSON (the 1st PERSON gets more to pay the rent) – it does not matter whether the person is an adult or a child. What the Prebate does is “make believe” that the HHS Guidelines say “Adult” & “Child” – they are trying to give away more money, YOURS.

RESULT: The Prebate overpays the poor by $1,718.

Point 2. The Prebate’s more generously defines “family”

FT’s more limited (than the HHS guidelines’) definition of “Family” allows for more FT “families” in a single physical household than the underlying HHS Guidelines would allow. A FT “family” includes only lineal ancestors/descendants (plus adopted). Thus, the Wife’s Sister would be treated as a separate family under FT, and thus as an adult.

RESULT: The Prebate overpays the poor by $1,718.

Point 3. The Prebate “assumes” that ALL spend AT the poverty limit.

If the family ACTUALLY spends LESS than the maximum amount a family can spend and still be at the HHS Guidelines’ limit, they will be overpaid. This family is “assumed” to spend $42,510.

RESULT: If they ACTUALLY spend $3,000 less than that, the Prebate will OVERPAY them by $690.

Point 4. The Prebate OVERPAYS for USED goods

If the family buys some goods USED (and can prove the seller paid FT) they will not have to pay FT. Yet the Prebate “makes believe” that they DID pay FT.

RESULT: If the family bought $5,000 of USED goods, the Prebate would overpay them by $1,150

Point 5. The Prebate OVERPAYS for Black Market purchases

If the family buys some goods on the Black Market, they will pay no FT. The FT “makes believe” that all of the money is spent legally so that full FT is paid.

RESULT: If the family spends $5,000 in the Black Market, the Prebate overpays them by $1,150.

Point 6. The Prebate OVERPAYS for In-Kind Welfare

If the family is on Welfare, a substantial portion of their support will be paid IN-KIND (e.g., Medicaid, Housing Assistance). The poor will NOT receive cash for these items and pay FT – WE DO. Thus, the FT “makes believe” that the poor actually paid the FT and repays THEM for FT WE paid.

RESULT: If in-kind welfare is $6,000, the Prebate overpays by $1,380.

SUMMARY:

1. Total Spending where FT is ACTUALLY paid in this illustration would be $8,570 and actual amount of FT paid would be $1,971.

2. The Prebate’s total OVER-assumed spending (where FT would NOT be paid) would be $33,940 and it total OVERPAYMENT of the Prebate would be $7,806.

3. PLUS, the poor get free SS/Medicare.
 
The author continues the FT FRAUD. He is telling you that the FT is a 23% sales tax.

He want you to think that is something costs $100 BEFORE adding FT that the FT you would add is "only" $23 - BIG DECEPTION. you would add $30 and the total is $130.

In fact, the FT tell the merchant (Sec 509) to give the idiot buyer a receipt that shows 1) $100, 2) $30, 3) $130 and on line 4, tell him the RTE of FT is "only" 23%, but don't tell him how we derived that 23% rate.

They get that 23% rate by dividing the $30 in FT BY THE TOTAL INCLUDING THE FT, $130. They try to rationalize that view (that they still try to slip by people), but their
excuses make no financial sense - they are merely trying to fool us into thinking the rate is lower than it really is.
 
The author's major point is the coomn FT myth that the underground economy will now be taxed, as if that underground economy will magically now become legal. That economy will remain underground and will avoid paying FT on their purchases. Economist at UT wrote a Paper saying that criminal will now pay the same tax just via a different method.

The author's claim totally ignores the fact that 320MM Americans will become FT-criminals by trying to avoid paying FT at every opportunity. Their evasion/avoidance will overwhelm any possible small increase in tax paid by the existing underground.
 
Dantès said:
I have no problem with that, if they are poor they probably could use a little more money!
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I will defend to the death your freedom and right to give the poor as much of YOUR OWN MONEY as you chose.

I will defend to the death my right to keep you from stealing MY MONEY to the poor person that YOU or Nancy Pelosi choose.

Sorry, Comrade, we are not redistributing some national pot of wealth - welfare is forced wealth redistribution.
 
I much prefer the flat tax. This one utilizes sales taxes, which is just awful, not to mention unbelievably regressive beyond the pale.
 
YANKEE said:
I will defend to the death your freedom and right to give the poor as much of YOUR OWN MONEY as you chose.

I will defend to the death my right to keep you from stealing MY MONEY to the poor person that YOU or Nancy Pelosi choose.

Sorry, Comrade, we are not redistributing some national pot of wealth - welfare is forced wealth redistribution.
Click to expand...


I bet your fine with corporate welfare though aren't you? And the expansion of the defense industry and the military industrial complex and tax subsidies for Walk-Mart that allow its workers to work and still be eligible for food stamps and subsidized Medical through Medicaid. That takes a hell of a lot more of your precious damn tax dollar than any other social program and the interest in the national debt that has been repeatedly run up by ignorant, profligate Republicans such as your personal hero, George W. Bush. Has he found even one of those weapons of mass destruction that he invaded Iraq to locate? I guess not huh?
 
Dantès said:
I bet your fine with corporate welfare though aren't you? And the expansion of the defense industry and the military industrial complex and tax subsidies for Walk-Mart that allow its workers to work and still be eligible for food stamps and subsidized Medical through Medicaid. That takes a hell of a lot more of your precious damn tax dollar than any other social program and the interest in the national debt that has been repeatedly run up by ignorant, profligate Republicans such as your personal hero, George W. Bush. Has he found even one of those weapons of mass destruction that he invaded Iraq to locate? I guess not huh?
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Shut up faggoty ass faggot queer
 
YANKEE said:
The author continues the FT FRAUD. He is telling you that the FT is a 23% sales tax.

He want you to think that is something costs $100 BEFORE adding FT that the FT you would add is "only" $23 - BIG DECEPTION. you would add $30 and the total is $130.

In fact, the FT tell the merchant (Sec 509) to give the idiot buyer a receipt that shows 1) $100, 2) $30, 3) $130 and on line 4, tell him the RTE of FT is "only" 23%, but don't tell him how we derived that 23% rate.

They get that 23% rate by dividing the $30 in FT BY THE TOTAL INCLUDING THE FT, $130. They try to rationalize that view (that they still try to slip by people), but their
excuses make no financial sense - they are merely trying to fool us into thinking the rate is lower than it really is.
Click to expand...

The horror, the horror!

If Neal Boortz supports this tax that's good enough for a free thinking tea bagger like me. I'm far too illiterate to understand all the ins and outs of the complex math you propose here but if Boortz, the Bore, supports it, I'm down with it! Feed the Poor and give them a healthy Prebate. Sounds good to me. I like the ring of it. And I don't know how many Karl Marx'd there are but he was no libertarian. All that talk about chains was malarky, he wanted to enchain not unchain. And thinking about all this gave me a horrible nightmare last night, so I don't want to think about no more communists right now. please!
 
Cuntès said:
The horror, the horror!

If Neal Boortz supports this tax that's good enough for a free thinking tea bagger like me. I'm far too illiterate to understand all the ins and outs of the complex math you propose here but if Boortz, the Bore, supports it, I'm down with it! Feed the Poor and give them a healthy Prebate. Sounds good to me. I like the ring of it. And I don't know how many Karl Marx'd there are but he was no libertarian. All that talk about chains was malarky, he wanted to enchain not unchain. And thinking about all this gave me a horrible nightmare last night, so I don't want to think about no more communists right now. please!
Click to expand...

Still talking faggot?
 
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