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The FairTax proposes to eliminate, not add, taxes
Published Wednesday, February 6, 2008
On one of his recent television programs, Keith Olberman became one of many whose evaluation of The FairTax reveals their misunderstanding, and the obvious fact that he hasn’t read the bill.
The essence of his remarks was, “The FairTax simply adds another 23% tax on top of all the other federal taxes.”
The FairTax does no such thing.
The FairTax proposes to eliminate all federal taxes — income, withholding, capital gains, corporate, inheritance, Social Security and Medicare — and replace them with a 23% sales tax, also known as consumption tax, paid only once, at the final point of personal consumption, paid only on new goods and services. Used goods, and busines to business trans-actions, will not be taxed.
Most wage-earning, tax-paying American citizens are not aware of “embedded taxes,” that are hidden, and do not appear on the receipt.
Though unseen, the consumer pays them.
A loaf of bread that sells for $2.69 includes the taxes on the wheat seed the farmer buys, the seeder he uses to plant those seeds, the truck that transports the wheat to the mill, the mill operator, the truck that moves the flour to the baker, the manufacturer of the bread wrapper, and finally, the store that sells the manufactured loaf. Who pays the taxes on those seven operations? You guessed it — or did you?
The worst of those embedded taxes is the payroll deduction tax.
That is money that’s withheld from wage-earners, even those who live below the poverty line. By eliminating those embedded taxes, wage-earners will take home their entire paycheck — 100% — and set their own tax rate, based on how much or how little they buy.
When The FairTax becomes the law of the land, there will come an economic upturn of great proportions. Outsourced companies will return to our shores. Goods produced in our great country will finally have a level playing field. Even Mr. Olberman will have more money in his pocket.
Dick Grenell - Ashby
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Posted by Blixx (anonymous) on February 6, 2008 at 12:57 p.m. (Suggest removal)
If you live paycheck to paycheck then you will spend 100 percent of your income on consumption meaning you will be taxed on all you earn - 100 percent. If you are a millionaire that can afford to spend only 5 percent of your income to live on and save the rest then you will only be taxed on 5 percent of your income. Oh boy...that really sounds fair to me. The media won't cover it but find the truth at fairtaxfraud.com.
Posted by thethinker (anonymous) on February 6, 2008 at 3:10 p.m. (Suggest removal)
That is incorrect (being taxed on 100% of your earnings). You incorrectly assume everything will be taxed and that is false. Necessities would not be taxed (food, shelter, utilities, and in some proposals clothing). If you can afford to buy a new car you would pay tax. If you can afford to buy a new fishing boat, you would be taxed. It is not a blanket tax on every good sold in the nation. Only some, and that is where the debate could get interesting.
Posted by vike (anonymous) on February 6, 2008 at 5:06 p.m. (Suggest removal)
Based on what Blixx said, the person making 24,000 per year would be paying taxes on 24,000. Let me think......isn't he paying taxes on 24,000 right now. And then, about the millionare..... if a person now makes that money he probably does the smart thing and pay taxes on nothing, or very little. But, on fair tax, if he spends 200,000 of that million then he's paying taxes on that 200,000.
Posted by Blixx (anonymous) on February 6, 2008 at 5:30 p.m. (Suggest removal)
Under the FairTax food, water, rent, electricity, phone service, natural gas, clothes, medicine, and gas for you car will be taxed 30 percent. The tiny $187 poverty level prebate for an individual doesn't even come close to refunding actual necessities. Even with a big family and a higher prebate the amount actually spent on necessities is at least 5-10 times higher then what you get back.
It's true that under the FairTax if you are a billionaire you can pass it all to your heirs tax free - that why they call the FairTax the Paris Hilton Tax. It's true you can buy a used mansion and pay no taxes - but you can't buy used food - that's 100 percent taxable under the FairTax. It's true you can buy a used yacht and pay no taxes, but you can't buy used electricity or used heat for the home. It's true you can buy a used 10,000 acre horse ranch and pay no taxes under the FairTax, but you can't buy used medicine or used gas for the car. The poor pay fair-taxes on everything and since they live paycheck to paycheck they also spend all they have on consumption so they are taxed on everything they earn. The rich make out like bandits under the FairTax. See fairtaxfraud.com for the truth.
Posted by pilsnerurquel (anonymous) on February 6, 2008 at 6:16 p.m. (Suggest removal)
I can't believe how obsessed Republicans are with taxes.
Posted by Dewey715 (anonymous) on February 6, 2008 at 8:19 p.m. (Suggest removal)
Blixx - Just what system do you prefer?
Posted by Ian (anonymous) on February 6, 2008 at 10:27 p.m. (Suggest removal)
Gov. Huckabee's advocacy of the FairTax ( http://snipr.com/irsgone ) is the single most important policy position in this election for the simple reason that the research ( http://snipr.com/fairtaxslate ) shows enormous benefits that will ensue with its enactment.
ALERT: Kotlikoff refutes Bruce Bartlett's shabby critiques of the FairTax ( http://snipr.com/bbrebuke ).
Posted by thethinker (anonymous) on February 7, 2008 at 10:33 a.m. (Suggest removal)
There are several versions of this "Fair Tax" or "National Sales Tax". I can gurantee one thing about the version that gets implimented (if it does): it will NOT include tax on necessities like food, water, and utilities. Such an endeavour would cause mass rioting in the streets as the People realize just how much further they are getting screwed by the govt.
Posted by chugalugalug (anonymous) on February 7, 2008 at 5:46 p.m. (Suggest removal)
PLEASE CONSIDER THIS ALSO:
22% of the price of all that you buy currently is tax / tax compliance cost. When that cost goes away (under the Fair Tax) the price of your $1.00 item (purchased at Wal-Mart, for example) drops in price to 78 cents (without damaging the profit margin).
1.23 X 78 cents = 96 cents.
Seeeeeeeeeeeeeeee!!!! Even with the 23% Fair Tax added on, your originally $1.00 item is now 4 cents cheaper.
The "out-of-pocket" cost of living , under the Fair Tax , will be no more than it is now.
Under the Fair Tax there are NO LOSERS, only winners, the difference being that some win BIGGER!!!! than others due to their increased FRUGALITY.
Best Regards,
John Paul McDaniel
Go to: www.fairtax.org
Posted by chugalugalug (anonymous) on February 7, 2008 at 6:04 p.m. (Suggest removal)
We here in Texas have a state sales tax and it has resulted in NONE! of the
dire predictions some foresee. There has been no scandal, corruption,
or cheating in relation to it. It has funded our state government
SPLENDIDLY! We Texans, tourists, illegal aliens, criminals, etc. are all
in INSTANT COMPLIANCE!! every time we go through the
"cash-register-check-out-line". Virtually no one escapes paying. If it works for Texas
it will work for the nation. I would appreciate your support for the Fair
Tax.
THINK ABOUT IT MORE...................................................
Read and Enjoy..................................................
APRIL 15TH????? Let's make it just another Spring day.
HR 25, the Fair Tax Act, is in the House Ways and Means Committee of
congress, waiting to be passed into law. If passed, the Income Tax &
IRS would be abolished and replaced with a national (retail only) sales
tax.
Everyone shoud go to: www.congress.org and tell their congressmen that
they want HR 25 passed into law ASAP!!!! If we all "push together", we
can make it happen. There's nothing to it, BUT TO DO IT!!!!!!
Read and Enjoy.
The FINAL SOLUTION!! for the IRS & Income Tax Problem
50 Reasons I Support the FairTax
(How many reasons can you give for supporting the present obsolete IRS
& income tax system?)
Those Who Know the Facts Love the Fair Tax
"Family Friendly Tax Reform"
Tax Reform with far less pain and much more gain!
Out with the Old Code and in with the New (national RETAIL ONLY sales
tax).
www.fairtax.org
Read at the following link and ENJOY:
http://50reasons.blogspot.com/
Best Regards,
John Paul McDaniel
Go to: www.fairtax.org
Posted by Elizabeth (anonymous) on February 8, 2008 at 10:22 a.m. (Suggest removal)
I don't think "If it worked for Texas, it will work for the nation" is really a motto we should be endorsing right now.
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