To the extent that the maket is actually free (sans coerced subsidies 
and coerced trade protections/barriors) price competition will 
deliver justice to consumers.  


-Terry Liberty Parker 
AND Find More Free On-demand Playbacks On-line via 
AustinLibertyInterNet Radio/TV 
at http://groups.yahoo.com/group/LibertyProspects/links 


--- In [email protected], "kiddleddee" <[EMAIL PROTECTED]> 
wrote:
>
> Another problem that I see with the "fair" tax is this: According 
to 
> even the "Fair Tax" people, since businesses pass their tax burden 
on 
> to consumers in the form of higher prices, income taxes (directly 
or 
> indirectly) make up more than 20% of the retail price of products - 
> others say MUCH more! Does that mean that with the passage of 
> the "fair" tax, retail prices will immediately come down 20% (or 
> more)? Or does that mean that the "fair" tax will mean a 20%(or 
> higher) government-mandated boondoggle for businesses at the 
expense 
> of consumers?
> 
> 
> --- In [email protected], "Thomas L. Knapp" 
> <thomaslknapp@> wrote:
> >
> > Quoth Boyd W. Smith:
> > 
> > > There is an old saying that says that the perfect is the enemy 
of
> > the better.  The fair tax while not perfect is clearly much 
better.
> > 
> > Only if by "clearly much better" you mean it:
> > 
> > - Results in the theft by government of just as much money as the
> > income tax (the "Fair" Taxers boast that their proposal 
is "revenue
> > neutral");
> > 
> > - Results in the same amount of, or perhaps more, redistribution 
of
> > wealth than the income tax (the "Fair" Taxers boast that their
> > proposal is at least as "progressive" as the income tax);
> > 
> > - Puts every American on the dole so that they're recipients of
> > monthly government welfare checks which the majority will likely 
> fight
> > tooth and nail to keep coming in perpetuity (the "prebate"); and
> > 
> > - The "Fair" Taxers arguments about eliminating the IRS aside, 
> _will_
> > require a bureaucracy to administer (both to collect and to send 
out
> > the welfare checks).
> > 
> > The "Fair Tax" is at _least_ as bad as the income tax in every 
way,
> > and worse in some ways. It's not a tax cut. It's not a tax
> > elimination. It's just a strengthening of the tax system by 
linking 
> it
> > to a welfare program -- just like Social Security, which has been 
a
> > "third rail" issue in American politics for half a century 
precisely
> > because millions of Americans have a vested interest in keeping 
the
> > checks coming.
> > 
> > It may not be politically possible to get the income tax straight-
> out
> > eliminated right now, but it is politically possible to get it 
CUT,
> > which would be a far superior alternative to the "Fair" Tax.
> > 
> > The Boston Tea Party's program calls for universal, bottom-up tax 
> cuts
> > as follows:
> > 
> > "The Boston Tea Party calls for legislation adopting an annual,
> > regularized increase in the personal exemption to the federal 
income
> > tax of $1,000 or more, and the additional application of said 
> personal
> > exemption to all FICA/Social Security taxes paid by employees and
> > employers."
> > 
> > Members of Congress (mostly Democrats) routinely propose and vote 
> for
> > increases to the personal exemption, so it's politically doable.
> > 
> > Increases to the personal exemption give EVERYONE who pays taxes 
a 
> tax
> > cut, from the janitor at the local factory to Bill Gates.
> > 
> > Increases to the personal exemption remove people from the tax 
rolls
> > and withholding treadmill entirely (every time the exemption goes 
> up,
> > more people's income falls below the taxable amount).
> > 
> > Applying the personal exemption to Social Security payments would
> > address the extreme regressivity of the Social Security system. 
The
> > poorest people pay proportionately the most in Social Security 
taxes
> > (since the requirement to pay is capped at a certain income level 
> in,
> > I believe, the $60K range), and they receive the fewest benefits 
> (due
> > to shorter lifespan).
> > 
> > Eliminating the income tax is the best option. Failing that, 
cutting
> > it is. Replacing it with a tax that doesn't cut taxes, doesn't 
> remedy
> > redistribution problems, doesn't eliminate (or probably even 
reduce)
> > the associated bureaucratic and administrative costs, and puts 
every
> > American on government welfare is just a scam if the goal is to 
> reduce
> > or eliminate taxation.
> > 
> > Tom Knapp
> >
>






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