Don't Miss it. Especially you, Jeff!

Tuesday - March 6th

Fair Tax Internet Seminar

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Spear Road Guy's picture
Submitted by Spear Road Guy on Mon, 03/03/2008 - 9:44pm.

If you think for a second the lobby driven Congress is ever going for the Fair Tax, you need to get your head examined.

Then we have Rep. Lynn Westmoreland who is not smart enough to read the Fair Tax book. It's like teaching a rock to jump through a hoop.

Vote Republican

mapleleaf's picture
Submitted by mapleleaf on Mon, 03/03/2008 - 5:39pm.

Yes, it is! It is an income tax on the (gross) income of the sellers and service providers.

Think of the enforcement implications.

JeffC's picture
Submitted by JeffC on Mon, 03/03/2008 - 2:35pm.

I submitted a list of questions to the Boortz FairTax Seminar to be answered. Can't wait for the responses.


If I now make $1000 in every paycheck and take home $800, how much will my paycheck be after the FairTax is implemented?

Will the FairTax apply to gasoline, raising the price another (roughly) $1.00 per gallon?

Will the FairTax be applied as additional taxes to utilities such as electricity, natural gas, telephone and internet services?

Does the FairTax tax rents?

The premise of the FairTax seems to be that embedded taxes account for about 21% of production costs and with the implementation of the 23% FairTax we can do away with the income tax for essentially a (roughly) 2% net tax increase. Since we are currently already paying the embedded tax now, why is it necessary to raise an additional $2.2 trillion dollars with the federal taxes anyway?

The FairTax taxes any interest paid on mortgages and credit card debt above the prime rate. Is it “fair” to tax people’s debt?

What percentage of the population pays 23% or more in income taxes?

The President’s Advisory Panel on Federal Tax Reform and the Treasury Department both calculated that to replace only the income tax would require a sales tax rate of 34% and the Panel said that when figuring the 23% tax rate, the proponents of the FairTax assumed that the government would pay the tax on its purchases thus enlarging the base of taxed goods which allows for a lower overall tax rate. At the same time, when calculating the cost of goods government purchases, the payment of the FairTax was not included. The Panel states that, “Failure to properly account for this effect is the most significant factor contributing to the FairTax proponents’ relatively low revenue-neutral tax rate.” Your comments?

The President’s Advisory Panel on Federal Tax Reform report explains that the FairTax, even without having to raise the money for the “Prebate” would “increase the tax burden on the lower 80% of American families, as ranked by cash income… Such families would pay 34.9% of all federal retail sales taxes, more than double the 15.8% federal income taxes they pay today. The top 20% of American taxpayers would see their tax burden fall… ” Your comments?

The President’s Advisory Panel on Federal Tax Reform calculated that the Prebate would be the largest welfare program in existence and estimated its cost at $600 billion dollars in 2006, equivalent to 23% of the Federal budget. When the revenue-neutral rate was calculated to replace the amount the government collects to fund itself through taxes, was the cost of the Prebate (which will be a new government program) included?

dawn69's picture
Submitted by dawn69 on Mon, 03/03/2008 - 9:50pm.


ImJustSaying's picture
Submitted by ImJustSaying on Mon, 03/03/2008 - 2:53pm.

Hi Jeff,
Without the benefit of a reply from Boortz's Fair Tax seminar, you already appear to have formed strong opinions about why the Fair Tax is a bad idea. I ask you, is our current system a better situation to live under or do you have, in your opinion, a better idea?

JeffC's picture
Submitted by JeffC on Mon, 03/03/2008 - 3:03pm.

I am asking legitimate questions about a tax system which is being proposed and which will call for a Constitutional amendment to be implemented. Surely you are not implying that the FairTax should not be scrutinized. Do you think these types of questions should not be asked?

Nope, I don't particularly like it and I am not offering better ideas. However, I would like to point out that my questioning what I believe to be a seriously flawed plan in no way obligates me to propose a substitute tax system for the United States.

ImJustSaying's picture
Submitted by ImJustSaying on Mon, 03/03/2008 - 4:44pm.

Don't call me Shirley. I am not implying the Fair Tax not be scrutinized, Constitutional ammendment and all. Your questions are valid and I too look forward to the answers. Worthy of additional scrutiny, in my opinion, are the social engineering changes and shifting power bases that would occur as manipulation of the current tax system ceased. My point was that as flawed as you make the Fair Tax appear, why not offer, dare I say, balance? I feel reasonably sure there are elements of the current tax arrangement you find equally flawed, not? Gratefully, I realize you are not obligated to propose a substitute tax system.
Peace Out!!

JeffC's picture
Submitted by JeffC on Mon, 03/03/2008 - 5:04pm.

What we have now is horrible. I am now gathering up the documents to take to my accountant so that he can do my taxes. I submitted a list of questions because the FairTax Seminar asked for them and offered to answer. I'm willing to look at another system but the FairTax isn't going to be implemented because it is full of fatal flaws.

Submitted by sageadvice on Mon, 03/03/2008 - 1:21pm.

Don't you people have something useful to do?
Those of us who stand to pay more taxes so that those who make more, then can pay less, aren't going to stand for it.

We can spend it into the economy just as well as they can, and the same amount of jobs will be created!


look to the future's picture
Submitted by look to the future on Tue, 03/04/2008 - 9:43am.

Just think, motivated Americans could bring the manufacturing jobs back home and our dollar would again be worth more than the EURO. We should seriously consider empowering the people with their own destiny and forget the corrupt egos of our current leaders to offer any hope to the future of our country. They continually ignore the real issues such as out of control spending, ever increasing debt, the breakdown of our economic institutions, the huge tax increases that would be necessary to implement any universal healthcare plan and the country's responsibility to keep social security solvent in the not too distant future. All parties continue to exhibit their lack of social conscience and fiscal irresponsibility in their failure to plan for future generations.

The Fair Tax offers some hope in that there would be a shift in power...the return of our future and the success of future generations to the citizens. An individual's quality of life would be the direct result of the amount of effort an he is willing to put forth. There is no endeavor more noble!!!

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