Comments on: Fair Tax, Foul Politics

National Review Online: A National Sales Tax May Have Merit, But It's Political Suicide

[andor3]

NRO are getting desperate for credibility. Here they take an idea that has been around for a very long time, and that everybody knows is not going to happen. And they predict that it isn''t going to happen.

Hope they won''t forget to remind us how they wisely saw this one coming so we should listen to every other prediction they might make.

[jt_lancer]

Taxation is theft, no matter what form it arrives in. Even the tax rate for the Fair Tax is far too high anyways. You still must give up 23% of all the money you spend and turn it over to the State.

Besides, nearly every greedy politician will balk at any change in the tax code if it threatens their ability to buy votes through pork barrel legislation. After all, what do politicians have if they cannot spend other people''s money? NOTHING.

Politicians and bureaucrats are leeches on the *** of society. They create NOTHING. They produce NOTHING. They merely play God by redistributing other people''s property by force, as they see fit.

[incog-nito]

For those of you who think the current tax code can be made more fair, let''s assume you''re right. Let''s say a new administration gets elected and makes the tax code more fair and equitable, great! But what about the next administration? If you have a tax system that is not transparent to everyone, but easily subject to sneaky changes, you will have a system that is easily abused, if not now then sometimes in the future.

[incog-nito]

elz523: Your argument has some valid points. I will try to address them.

First, the sales tax can be made more progressive with different rates for different goods, for example, higher rates for big tickets, luxury items. Second, strictly speaking a flat tax is by definition FLAT, not regressive. The current system seems progressive on the surface, but with so many loopholes it is actually regressive, affording for the wealthy many ways to shelter their money.

As long as we have a system that encourages social engineering like the current one, we will have abuses that only benefits certain groups. Why should homeowners get a tax break while renters, who are typically poorer, do not? If we are to avoid continual class warfare, we need a tax system that is TRANSPARENT and does not favor one group over another.

[andor3]

yep this is bad--it it''s regressive even if implemented right, so it hits the low-income people more,

A fair tax is one that requires the high-income and corporations to pay the same tax everyone else does, instead of the welfare system that provides them funds now.

But I have to admit the NRO trying to say what constitutes "political suicide" is pretty funny--these guys couldn''t find the political pulse if they had to.

[elz523]

People who oppose the national sales tax claims that it''''s fraudulent or regressive, yet cannot put forth any coherent argument againts it.
Posted by incog-nito at 05:01 PM : Aug 19, 2007


I beleive that is the coherent argument. A sales tax is regressive and fraudulent. It can be made legitimate, but it will remain regressive.

This is just another attempt by the very wealthy to change tax policy to favor them, as if they were suffering today. This is the companion piece to the elimination of the inheritance tax. Elimating the inheritance tax and going to a flat tax (which is what a sales tax is) only benefits the rich. Tell me please how the poor would benefit (or the middle class for that matter), other than some costs saved in preparation. You know what though, the poor typically aren''t paying hundreds of dollars to pay thier taxes, they generally will have only wage income and can typically do it themselves.

If you want to do something to make a fairer tax, eliminate some of the tax breaks that typically apply mostly to the wealthy.

[lorinkundert]

Allowing the current system to continue abusing people who by law are not liable for taxes will be suicide as more people start learning about the system. Google "Cracking the Code"

[incog-nito]

BTW, Warren Buffet himself said that the current system is not fair, and that his secretary pays a higher rate than he does, due to the countless ways he can shelter his money, unlike most working people

[incog-nito]

People who oppose the national sales tax claims that it''s fraudulent or regressive, yet cannot put forth any coherent argument againts it.

It''s the absurd complexity of the current tax code that is regressive and hurts the poor, because it allows for special interests to take advantage of through countless exemptions, deductions, credits, etc. that the poor are unlikely to be able to benefit from anyway. By the way, the tax code should not the arena for the government to perform social engineering, which is exactly what it''s doing right now.

[elz523]

NRO, I''''m appalled at you! FairTax benefits:

INDIVIDUALS:
%u2022 No more tax on income - make as much as you wish
%u2022 You receive your full paycheck - no more deductions
%u2022 You pay the tax when you buy "at retail" - not "used"
%u2022 No more double taxation (e.g. like on current Capital Gains)
%u2022 Reduction of "pre-FairTaxed" retail prices by 20%-30%
%u2022 Adding back 29.9% FairTax maintains current price levels
%u2022 FairTax would constitute 23% portion of new prices
%u2022 EVERY household receives a monthly check, or "pre-bate"
%u2022 "Prebate" is "advance rebate" for monthly taxes on poverty level spending
%u2022 FairTax''''s "prebate" ensures progressivity
%u2022 NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals
%u2022 FairTax captured when illicit income is spent


Posted by ih2005 at 12:44 AM : Aug 19, 2007

And most importantly of all: THE RICH PAY THE SAME TAX RATES AS THE POOR (hence the Fair in Fair tax) and NO MORE TRANSFER PAYMENTS (let them eat cake)!!!

Keep trying Fairtaxers, someday average Americans may fall for your BS. Today ain''t the day!