That’s one of the big arguments against the FairTax. How could it be any worse than what we have today? Today we have under the table and illegal transactions. Today we have a hidden economy of illegal aliens. Today we have the prostitutes, pimps, drug dealers and just plain ordinary citizens who conduct transactions on a cash-only basis so they don’t have to pay income taxes.
Under the FairTax, the drug dealer will be paying his taxes when he spends his money. Illegal aliens will also pay taxes as they consume; however only legal households will receive the monthly prebate check to offset expenditures up to the poverty level.
The FairTax is so simple that some fear the public will understand it. It is so visible to the public that some fear the public will learn their true tax burden. It taxes us so directly that it eliminates the ability to buy and sell tax favors, so some that benefit from this practice hate it.
The FairTax would do more than any other legislation contemplated or possible to revive our economy, reverse our balance of trade, stop the fall in the value of the US dollar, save our industrial base and return to us the freedoms we have lost due to the income tax.
The FairTax eliminates the buying and selling of tax favors by public officials and lobbyists that today corrupts our political system. By this means it transfers power from Washington back to citizens where our Founders intended it to reside.
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4 comments:
The Fair Tax is such a great system. It makes so much sense for America at this point in our history; increasing productivity, encouraging moving up in the income brackets, and making taxes simpler for all. I found a great petition telling Congress to look into the fair tax, and, as we gain more signatures, money is donated to the fair tax cause.
http://www.petitionearth.com/viewpetition.php?id=64
We need to tell America to make this important change. We need to speak out!
Chris -- fairtax makes sense, as long as you never get sick or need medical help, cause if you spend 100,000 to survive cancer, you get 30,000 in taxes.
Fairtax makes sense, as long as you don't pay rent. Cause rent is taxed.
Utilties are taxed.
Insurance premiums are taxed.
Fairtax might not work so well if you have medical costs, if you pay rent, utilities, or want to buy any large new item.
Mark you are right about those items being taxed. But you are ignoring the fact that they have taxes in them now which will go away. All the companies providing those services are now paying corporate income tax, payroll taxes and the costs of complying with those rules. When all those taxes go away under the Fair Tax and the Fair Tax is added in the cost to the consumer will not increase much if at all. It is estimated that the cost of those tax issues is addidng 20-25% to the costs now, it is just hidden.
The underground economy is everything from Wendy Waitress not reporting all of her tips to Mr. Cash Money, the drug dealer.
Let’s play a little game.
Let’s look at both under the income tax and under the FairTax.
We will start with a look into the life Mr. Cash Money under the income tax.
Mr. Cash Money sells “medicinal items” for cash on the street and takes a “commission” from working ladies.
He even provides a “protection service”!
Do we think Mr. Cash Money files a tax return every year? Any year?
Don’t hold your breath.
Poof, now we are in FairTax land.
Mr. Cash Money needs a new suit.
Nothing used for this guy! Bam, FairTax paid.
Mr. Cash Money needs some groceries, Bam, FairTax paid.
Mr. Cash Money needs to pay his rent, Bam, FairTax paid.
Mr. Cash Money needs to………..you get the picture, Bam, FairTax paid.
Do you think Mr. Cash Money will expose himself to the Gov’t by applying for the prebate?
Again, Don’t hold your breath.
Now let’s look at Wendy Waitress under the income tax.
She has been good and filed her taxes, just did not report all of her tips. A bad tax plan made a technical criminal out of a good person. She has worked hard but was never able to get ahead. Her overtime is even taxed at a higher rate.
Poof, now we are FairTax land.
Wendy applies for and gets the prebate. She now takes all her tips and put them into savings which are no longer taxed. Her overtime is not taxed. She is frugal and buys used items where possible which are not taxed. She takes a night course which is not taxed. She gets a better job which is not taxed. Now she is able to buy that new car, dress, shoes or whatever she has always wanted, and yes, it is taxed. But so what, thanks to the FairTax, Wendy has been able to get over that hump of sustenance to success.
So in the grand scheme of things…….. No, the Underground Economy would not be a problem.
Perhaps taxing “income tax” can not be more fair. Is taxing income the answer?
Where is “written” that income must be taxed to fund our collective gov’t needs? It has been that way since 1913. Prior to that, various excise taxes were used.
Why must we tax income? Some how point number two of the “Ten points of communism” found in the Communist Manifesto has become the norm. (see below)
Why would we want to?
What are we taxing when we tax income?
We tax work.
We tax prosperity.
We tax upward mobility.
We tax success.
Many economists believe that if you tax something more, you get less of it.
Do we really want less work, less prosperity, less upward mobility, less productivity and less success?
Ashford Schwall
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