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Ashford Schwall has his ducks in a row. He has his priorities straight. I was so impressed with his commentary, I simply had to make sure nobody missed it. Thank you, Mr. Schwall!

Ashford Schwall has left a new comment on your post "WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?":

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. 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