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Text 731, 75 rader
Skriven 2006-05-27 23:37:00 av BOB KLAHN (1:123/140)
     Kommentar till en text av JOHN MASSEY
Ärende: Tax breaks
==================
 RS>>>> And THAT is why the Fair Tax will never pass.
 RS>>>> Too many lobbyists and their all-too-willing whores.

 JM>>> As long as the country has people that think negative like
 JM>>> you it won't. But it is picking up a following as a grass
 JM>>> roots movement. You could help by going to FairTax.org and
 JM>>> educating yourself then let others know.

 BK>>   I have, and I am letting others know. It's a fraud with great
 BK>>   potential to do harm to our country.

 JM> Explain why you think it is a fraud.

 I hadn't looked at the website for a while, so I went back on it
 to make sure I remember it correctly. There's a lot of words
 there, but not all that much substance. I'll save this msg and
 go through it as I go through the material I downloaded. This
 time I'll start with their talking points.

 The first point of fraud is in their claim that, under Fairtax,
 you get to keep your entire pay check. Well, that's only true in
 a sense. You get to keep it a little longer, but not much for
 working people, the middle class and lower middle class. If you
 spend 90% of what you earn to live all you get to keep it for is
 the length of time it takes you to spend that 90%. A lot of it
 within a week, more within a month. AFAICS all you gain on that
 is to handle the money for a bit between the employer and the
 retailer.

 Then there is all that about how prices will drop, and what you
 keep will rise. If it's truly revenue neutral, there should be
 little difference on that. In fact, with the poor paying nothing
 at all and the rich not spending as much, proportionately, the
 middle class are likely to wind up paying more.

 One thing that is not really wrong, just quite annoying, is they
 switch between calling it a sales tax and a consumption tax. It
 may be the same thing, but it's annoying, and the term,
 "consumption tax" is, IMO, intended to make it look more benign.
 Tell people they are going to have to pay a 23% sales tax, by
 their figures, on top of their 4 or 5 or 6% state sales tax, and
 watch the support evaporate. Let me see, isn't Texas 8%? Make it
 31% on purchases and watch people's eyes bug out.

 Yes, it's still the same amount, but people won't like it coming
 out in one chunk like that.

 I do have to give them simplification. And when I'm doing my
 taxes I might even vote for it. However, one day of
 inconvenience a year is no basis for national economic policy.

 They make it sound like making taxation of income
 unconstitutional is somehow a wonderful thing. I think it's a
 really dumb idea.

 And they tout the reduction of tax evasion. I see it as an open
 invitation to tax evasion. I see little reason to evade taxes
 with an effective rate of under 20%, when so little is involved.
 With a tax rate of 30%, on as much as I can include, evasion
 suddenly becomes much more attractive.

 On Social security and Medicare I actually agree... except... I
 think a VAT would be preferable. Taxing only at the end leaves
 too much opportunity for evasion. Taxing at each step makes
 evasion harder, more tracable, and reduces the reward at each
 level.

 More as I go through the rest.

BOB KLAHN bob.klahn@sev.org   http://home.toltbbs.com/bobklahn

... Don't yank my chain. My sanity is fragile enough.
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