Wednesday, February 6, 2008

DARE TO BE FAIR

Congressman John Linder, the Sponsor of HR25 the Fair Tax in the House of Representatives, has begun a program to get a feel for the actual support of the HR25 the Fair Tax. Here is his message:

“We need to show that the issue of fundamental tax reform is critical to the economic growth of this nation, and I want to bring a million names to Washington, D.C. to make that point. Please sign on today to show your support for the passage of HR25 to create a simple and fair tax system.”

Go to this website:
http://www.johnlinder.com/citizen_co_sponsor.asp
and add your name as a citizen co-sponsor of the FairTax.

Be sure to pass this information along to all of the supporters (including spouses) that you know and remember to tell all new supporters that you bring on board.

5 comments:

srsf355 said...

Listen. I worked 25 years to build a company, taking out barely enough to live while I owned it, which I sold a few years ago. I paid 7 digits of tax to the Fed and 7 digits to the State. I split the take 50/50 with my employees and now I live off those AFTER TAX proceeds. I don't care how you slice it, if I spend that money under the (Not) Fair Tax, I get dinged twice. The newbie who is spending his paycheck on the same item I am purchasing pays less. Take out all the BS about "embedded taxes" because the bottom line is people who saved get screwed. So if you want to kid yourself that it is not double taxation, than by definition it is Zero Tax for the newbie and Single Tax for me because I am paying more than he. Not many people seem to care because not many people have saved anything.

If this passes I second the motion about the 2nd Amendment rights. Pass the amunition.

MARK said...

This guy is right. People who already saved their money the hard way, would have to pay a high sales tax on everything. Heaven forbid if they want to buy a big ticket item, like a car or new house.

But thats not the only problem with Fairtax, even though its a fatal flaw.

The major problem -- the fairtax would have to be 40% or more, just because of one math mistake FT makes. And that is -- the impossibility of the federal government paying taxes to the federal government.

Oh, I know that fed gov paid FICA for their employees, and that sort of thing. But never has any gov agency paid its own huge sales tax on its purchases. Paying for fed government FICA -- is really paying the employee, not itself.

So when the US Navy has to send in 4 billion in sales tax on an aircraft carrier -the Treasury has to pay that 4 billion. In no way is that a gov receipt that it can spend. Therefore, its a defacto exemption -- since no money is gained by the treasury.

Fairtax seems to want to count the money it pays itself, in order to show the tax rate can be 23%.

But thats like me wanting to show I earn 500,000 a year, by paying myself 10,000 dollars a day for cutting my grass. I can write the check to myself, I can even deposit the check. But I dont make 10,000 dollars. At the end of the month, I dont have 300,000.

This one fallacy (there are others) in the Fair tax actually means the entire plan is a house of cards. The tax rate would have to be 35-40% to make up for this one fallacy.

A 40% sales tax on new homes, on cars, on rent -- would actually be preposterous.

Dutchman3 said...

Mark,

Last week I would have been out there on that limb with you as regards the government taxing itself. But after a series of phone calls and emails with Bill Gale and Larry Kotlikoff, I now understand that having the federal government tax itself is a wash. It doesn't change the Fairtax rate at all. The simple reason is that if you remove the federal consumption from the Fairtax rate equation, you also have to reduce the revenue required, and it's a wash.

Now, let me add that it isn't a wash for state and local governments. Federal taxation of state and local government operations may result in either higher state and local taxes, reduced services, or some conbination of both. It also is likely to be found to be unconstitutional for the feds to tax the states under the long held doctrine of intergovernmental tax immunity. So, you are probably correct to believe that the rate will have to go up. But not due to the feds taxing themselves.

Stay tuned.

Anonymous said...

Share this video with others. :) It's awesome!!!! Go Huck! We can do it! :)

http://www.youtube.com/watch?v=_FssH6uQ3Sc&NR=1

Anonymous said...

To bad John Linder continues to vote for Big Spending items like medicare D and NCLB.


In the lastest book he and Boortz then rail against that spending....


Hypocricy?