Point taken with respect to "revenue neutrality." But there is elimination of tax-related expense by simplifying the code, which actually becomes a tax reduction (For example, it can cost a biz anywhere from $4 to $7 in costs in order to send $1 to Washington.)
What's more, the invitation for constant tinkering (by Pol's and Lobbyists) trends toward increasing this cost of compliance. The prebate is the recognition that - without some progressivity - the bulk of its true tax reform will be unable to garner enough support for passage. But lost opp. for work (thus, the need for welfare) is created largely by the Pol's that insist on this progressivity - so they can continue their profligate spending lifestyles. The FairTax isn't about "code," it's about simplicity. The bill, itself, is small. And, no doubt, Pol's will try to increase its size. But we must not make this our excuse for non-support of the FairTax - certainly as freedom-loving people. The FairTax is something - within grasp, if we will get behind it - that will rid us of the current system which is way punitive, intrusive, and punishes the wage earner with THE most regressive confiscation called FICA. Perfectly well understand your comment about withholding being printed on the paycheck, but this is NOT the COST of government because we do not know what our cost is until we interpret the complex tax code in the form of a 1040 the following April 15th. FairTax would make April 15th, just another Spring day, it's true! There's no "smoke and mirrors" about the rate; nor are FairTaxers being untruthful (demagogues like to say this about us - and it is they who seek to sustain an an expensive, indiscipherable tax system rife for opportunities for "untruthful," intentional, or otherwise): The income tax is spoken of as a portion of gross income, not a rate based on your net income. Likewise, for comparative purposes, the FairTax is spoken of as a portion of the gross item cost. It's the same amount 23% inclusive, or 29.9% on the net retail cost (which is the way sales taxes are represented). Thus, people should not be shocked by the FairTax sales tax rate of 29.9% - only that this is the cost of revenue neutrality AND providing for the progressive "pre- bate" which is the price we pay to simplify and get on a course of taxation which aligns with GDP growth, rather than working against it (in concert with interest rate manipulations by the Fed). Ian PS The little poem was quite delightful; do you aspire to being a Liberal? They love to interject such entertainment into discussion about sober matters. --- In [email protected], "Thomas L. Knapp" <[EMAIL PROTECTED]> wrote: > > Ian, > > > First, you fail to observe that FairTax begins us on the path to TAX > > ELIMINATION. The FairTax ELIMINATES the following taxes: > > > > INCOME TAX > > WITHHOLDING TAXES > > SELF-EMPLOYMENT TAXES > > ESTATE TAXES > > GIFT TAXES > > CAPITAL GAINS TAX > > ALTERNATIVE MINIMUM TAX > > I can't "fail to observe" what isn't there to observe. Consolidation > of taxes into one form isn't tax elimination, it's tax consolidation. > Or, to quote a better writer than myself: > > ----- > Three rings for the elven kings under the sky, > Seven for the dwarf lords in their halls of stone, > Nine for mortal men doomed to die, > One for the Dark Lord on his dark throne > In the land of Mordor where the shadows lie. > > One ring to rule them all, > One ring to find them, > One ring to bring them all > and in the darkness bind them > In the land of Mordor > where the shadows lie. > ----- > > The "Fair" Tax sites (particularly fairtax.org) are quite clear that > their goal is to make collection of taxes more "efficient," i.e. to > make it easier for government to get its pound of flesh. > > > Another link that really nails the manner in which the current system > > makes us all TAX SLAVES is shown here (READ PAGE 2 of the .pdf file, > > first): > > > > http://www.fairtaxmi.org/resrcs/Brochure-MI.pdf > > It doesn't address why making us all TAX SLAVES _and_ WELFARE SLAVES > is "better." > > > ** Eliminating the Tax Code - the primary tool of politicians > > to keep 53% of the lobbyists in Washington knocking on their doors. > > How is instituting a new tax code "eliminating the tax code?" > > And why do you think that the lobbyists won't agitate for special > treatment with the "Fair" Tax like they do the income tax? The "Fair" > Tax already exempts some things. There's no reason it can't exempt > other things -- and when the lobbyists are done, it will. > > > ** Printing the public cost on every sales receipt. > > Just like the public cost of income taxes is printed on every paycheck > and 1040, the cost of ever state and local sales tax is printed on > every sales receipt, etc. That hasn't worked to bring about tax > rebellion, so how will it magically do so when the tax in question is > the "Fair" Tax, which is linked to a self-preservation mechanism (the > largest welfare program in American history)? > > > This is truly profound in that Joe Public will begin to understand > > just how much their government costs (answer? 23% - THE FairTax > > rate on receipts). > > The Fair Tax is 30%, not 23%, if described in the same terms as every > other tax. This smoke-and-mirrors attempt to hide nearly a quarter of > it is a big credibility issue. If "Fair" Taxers are committed to lying > about the rate of the tax, what else could they be lying about? > > > How is it that you can continue to say that the FairTax is worse than > > the current system? You see the pre-bate as "welfare." The pre- bate > > is an advance REBATE of TAX TO BE SPENT. > > ... except that it's not linked to whether or not the tax IS spent, or > how much is spent. > > > You're hung up on semantics, > > and take a position of "eliminating the tax system" entirely which is > > NOT AN ADVANCEABLE POSITION. > > Go back and read the article you're replying to. You're incorrect. > > > I am amazed, in light of all that has been exhaustively researched > > and communicated in > > this forum, > > other forums, > > http://tinyurl.com/7lssy (LINKS), > > http://fairtax.org, and > > http://fairtaxvolunteer.org > > > > that people can continue to misrepresent what the FAIRTAX IS ! > > I agreee. The "Fair" Taxers should start being truthful about what > they support. > > Regards, > Tom Knapp > ForumWebSiteAt http://groups.yahoo.com/group/Libertarian Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/Libertarian/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
