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Tax Reform and why it is necessary.--Cut and pasted from sniffles comment-- Okay, you feel that we are in serious need of tax reform. Fair enough. Can you tell me in a few short sentences what you don't like about the existing progressive tax system? I'm curious. Thank you for having the courage to admit that a barrel of $100 crude oil will cost $130. SLindsey can learn from your example. I have four major issues with the so-called "fair tax": 1. Disproportional impact on certain industries, specifically transportation, health care and housing. 2. Jeffc has shown time and again how the implementation of the so-called "fairtax" will NOT increase your take home pay. 3. The so-called "fairtax" implements a tax on all imports, making it cheaper to produce things in the USA. It doesn't take into account the tit-for-tat nature of tariffs (which the so-called "fairtax" essentially is for imports). Countries undoubtedly will retaliate against our newly imposed 30% surcharge with tariffs of their own, making it more difficult to export American goods. 4. The inherent flaw of price inelasticity in professions where there is a high barrier to entry. The so-called "fairtax" model presumes that market forces will drive the purported 27% "inherent cost" down and that the savings will be passed on to the consumer. Consider industries where there are very few practitioners due to a high cost of entry (i.e. cardiac surgeon for example). My cardiac surgeon may have his costs go down, but owing to the lack of competition (who price shops surgeons?) there is no need for him/her to lower his/her prices. He/she has realized a windfall at my expense. I won't ask you to justify the so-called "fairtax" on an intellectual basis, I think you're smarter than that. I'm simply pointing out my opinion that, in addition to having an adverse effect on taxpayers in the 30K-200K bracket, it has an adverse effect on certain industries as well. The existing tax structure may be fundamentally flawed. I'm open to arguments as to its replacement, but I feel tha so-called "fairtax" is little more than snake-oil that depends on the average citizen's dislike of the IRS to promote a revised tax structure that would have them pay more. I WILL COMMENT ON THIS TONIGHT-SNIFFLES The Wedge's blog | login to post comments![]() |