Ian,
You write:
> 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.)
The "Fair" Tax claim for reducing these costs rings pretty hollow.
Sure, the IRS may be eliminated _in name_ -- but there will be
multiple new bureaucracies required to administer the "Fair" Tax and
bust down black marketeers.
To start with, fifty state-level "mini-IRSes" to ensure compliance by
businesses.
Plus the federal bureaucracy to send out the welfare checks.
Plus a federal enforcement arm to bust welfare cheats who keep their
dead moms and dads on the dole and so forth ("Fair" Taxers never want
to talk about the fact that households _will_ have to fill out forms
for their households "proving" how many people are in the family for
calculation of the "prebate").
And, of course, a federal enforcement arm to bust interstate evaders
who buy stuff new for re-sale (no tax), then sell it to themselves in
another state for re-sale (no tax), then sell it as "used" (no tax,
and a very attractive price compared to the same stuff on the shelf
down the street at Best Buy which now costs 30% more).
By the time it's done, I'll be surprised if the new bureaucracies
aren't twice as big, three times as intrusive and four times as brutal
as what we have now.
> What's more, the invitation for constant tinkering (by Pol's and
> Lobbyists) trends toward increasing this cost of compliance.
I've yet to see any convincing argument that the "Fair" Tax will get
rid of the lobbyists. It already has exemptions in it (for "used"
goods). The ink won't be dry on it before the auto industry lobbyists,
the homebuilder lobbyists, etc., start pleading for exemptions too --
and getting them.
> 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.
I agree. The excuse for non-support of the "Fair" Tax is that it
pretty much sucks even worse than the current system, in pretty much
every way imaginable.
> 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!
And it would make every Spring day just another April 15th.
> 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)
In the nearly universal language of sales taxes, they are calculated
and discussed "tax-exclusively." In other words, if you buy an item
priced at one dollar, and ten cents in tax is added, you are paying a
tax rate of 10%.
The "Fair" Taxers calculate and discuss their proposal
"tax-inclusively." If you buy an item priced at one dollar, and thirty
cents in tax is added, they want to pretend that the rate is 23%
rather than the 30% that it actually is.
That. Is. Dishonest. Period. If your tax won't pass muster at its real
rate, then change the rate instead of trying to hide the rate.
Regards,
Tom Knapp
------------------------ Yahoo! Groups Sponsor --------------------~-->
Yahoo! Groups gets a make over. See the new email design.
http://us.click.yahoo.com/WktRrD/lOaOAA/yQLSAA/KlSolB/TM
--------------------------------------------------------------------~->
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/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/Libertarian/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> 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/
