Immigration and the Fair Tax Bill

Discussion in 'Politics' started by North Carolina Tentmaker, Jun 13, 2006.

  1. North Carolina Tentmaker

    North Carolina Tentmaker
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    I am a big fan of the Fair Tax Bill (HR 25 this year). I suspect many conservatives here are. The idea of putting thousands of lawyers and accountants out of work would be a dream come true.

    Mac Johnson has written a column about how passing the fair tax would help immigration. I thought it was great. You may read the entire column at:

    http://www.humaneventsonline.com/article.php?id=15535

    Highlights:

     
  2. billwald

    billwald
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    law of unintended consequences

    First, it is a cash register tax, not a sales tax. It is the equilalent of over 30% sales tax.

    Second, it would do nothing to stop the under ground economy or slow the transfer off assets to Swiss banks.

    Third, it only applies to "new" property sales thus would be only paid on consumables. For example, a new car becomes a used car when driven. A car dealer could let his employees drive the cars for a week and them sell them as used "demos."
     
  3. North Carolina Tentmaker

    North Carolina Tentmaker
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    Technically it is called a consumption tax. You can learn more about it here:

    http://www.fairtax.org/

    The FairTax proposal is a comprehensive plan to replace federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax proposal integrates such features as a progressive national retail sales tax, dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. Included in the FairTax plan is the repeal of the 16th Amendment to the Constitution. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.

    From fairtax.org

    The FairTax:
    • Abolishes the IRS
    • Closes all tax loopholes and brings fairness to taxation
    • Maintains our current Social Security and Medicare benefits
    • Brings transparency and accountability to tax policy
    • Allows American products to compete fairly
    • Reimburses the tax on purchases of basic necessities
    • Enables retirees to keep their entire pension
    • It completely detaxes the poor – no American below the poverty level will pay one dime in taxes.
    • It ends federal payroll deductions and the Social Security Tax
    • Enables workers to keep their entire paycheck
    While it is true that it would do nothing to stop the underground economy [If you grow corn, I own trees, and I trade you a truck load of firewood for a load of corn than I get to eat and you can heat your house and we never paid taxes to anybody] it would eliminate the transfer of assets to offshore accounts because there would no longer be any reason to do so. It would encourage savings because you would not be taxed on your money until you spend it.

    The example of the used cars is completely false. The only way the dealer could avoid paying sales tax on the cars would be to prove that he charged sales tax when he sold them. At whatever point the vehicle was consumed tax would be paid. What would happen in the example billwald gave would be that the dealer would only have to pay tax on the wholesale price of the vehicle if he sold it used. The tax savings would only be on the difference between the wholesale and retail prices. (but I thought all car dealers sold less than wholesale, that is what they say on TV)

    Of course the biggest plus I see of the fair tax is the abolition of the IRS. No returns, no audits, no record keeping, no government institution prying into my private life. To me that equals greater personal liberty for all Americans.

    57 members of the house are now co-sponsors of this bill.
     
  4. Baptist in Richmond

    Baptist in Richmond
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    The fair tax will NEVER happen. I don't care what Neil Boortz says: it will NEVER happen. Do you really think that the tax attorneys are simply going to watch their livelihood go down the drain? And do you think that folks at the IRS are simply going to go and find other jobs?

    No chance, unless of course some sort of national ID card is enacted, so even the underground economy can be taxed........
     
  5. Hope of Glory

    Hope of Glory
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    Another lie that people use to demonize the fair tax is that it will raise the costs of things. By removing several other taxes from the middle, the costs of most items (particularly those made here) should remain the same or even drop.

    But, often these are the same people who spread the lie that the oceans will rise if the ice caps melt. So, I'm not surprised. The average American has been dumbed down to the point that he neither understands economics or physics.
     

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