Monday, March 3, 2008

FAIRTAX TRULY NON-PARTISAN

Below is a letter from Joshua Pritikin, a FairTax Volunteer AND a Democrat. We need more people like him, who takes the time to check out the facts and is not afraid to go with them. If you would like to receive all of the FairTax correspondence, just sign the FairTax petition at www.fairtax.org and sign up as a FairTax volunteer. Here is his letter:

In response to three letters titled "The FairTax and the $50m jet" on 02 Mar 2008: As a registered Democrat, I was pleased to see other fellow Democrats taking up consideration of the FairTax proposal. I prefer the Democratic position on social issues, but the Republicans are ahead of us on questions of taxation.

I realize this may be difficult to understand. It only became clear to me after running the numbers myself. When it comes to questions of public tax policy, I used to avoid the discussion and stick my head in the ground.

The complexity of the current system is mind numbing. But that is where the advantage of the FairTax shows most vividly. It is simple to understand and explain. I was not surprised that letters in response to Prof. Kotlifoff were negative. After all, the topic is taxation. Some diligent study is required.

Both Mr. Laswick and Mr. Depperman pointed out that a wealthy individual who spends little money would pay little tax. They contrasted this case with a middle class earner who must spend (and be taxed) on all of his income. There are at least three additional points to consider.

Firstly, the hypothetical middle class earner will be better off under the FairTax than he is now. He will pay less tax because the sum of the income tax, social security, and medicare taxes amount to more than the 23% FairTax less the prebate. You can verify this with a calculator.

Secondly, while the wealthy keep money in the bank, that money is lowering the interest rate on your mortgage.

Thirdly, this year or next year, the wealthy can afford to buy a new house, new yacht, or new airplane and the prebate is a vanishing offset against a 23% tax on millions of dollars.

Give the FairTax a fair chance. Dust the cobwebs off your calculator. Run the numbers yourself. It is not as difficult as you might expect.--

Make April 15 just another day, visit http://fairtax.org

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