Supporters of the so-called Fair Tax — a national retail sales tax that, in theory, could replace the income tax – are gearing up for a major push on Capitol Hill next week, including intensive lobbying, reports WSJ.
The highlight of the week will be a Ways and Means Committee hearing on the Fair Tax, as well as other consumption-tax variations, such as the European-style value-added tax.
Former Arkansas Gov. Mike Huckabee – who’s expecting to be one of the witnesses at Tuesday’s hearing – so far claims more than 25,000 signatures on a petition he hopes to deliver to lawmakers, says WSJ.
All changes to tax collection, including "reforms", Fair taxes etc., are extremely dangerous as they set up the potential for tax increases. The current tax system should be frozen in place, with tax reductions from the current system. Anything else is a trap.
It's a trap!
ReplyDeleteAgree with Anon@4:23.
ReplyDeleteThe ONLY way I'd think it might be a good deal is if it were a constitutional amendment that scrapped the income tax and replaced it with a "sales" tax that had to apply to EVERYONE equally.
That way, when scumbags argue for tax increases, the burdon would be spread amongst everyone, and it would make it much more politically unpalatable. The amendment should also state that the tax can not be lumped into the main price of an item; it has to be accounted for separately.
Of course, I'd rather see Ron Paul's idea of repealing the income tax and replacing it with NOTHING.
I just love how tea party activists are also the "fair" tax and sales tax activists while they ignore Ron Paul.
ReplyDeleteAnon @ 4:45 We all want to abolish the income tax. But fantasizing about what could be won't take us there. A national sales tax is preferable over the income tax, hence we should pursue a national sales tax as a substitute. Don't make the perfect the enemy of the good.
ReplyDeleteThey will enact the sales tax and we will have both income and sales taxes like they do in the Borg Collective...err...Europe.
ReplyDeleteThey will not ever stop until they have 70% of your earnings.
All taxation is theft and therefore immoral. Eliminate all taxes, but I'm no idiot we are dealing with stupid immoral jerks, aka politicians... so its gonna get worse before it gets better.
ReplyDeleteOne issue the Fair Taxers have not addressed is the "revenue neutral" aspect of the plan. One of the main selling points is that it is revenue neutral, but based on which fiscal year? 1983? 1999? Present day? The Fair Taxers love to quote the 23 percent rate, but do they really believe that a 23 percent rate would generate enough revenue to be "neutral" as compared to the present tax structure?
ReplyDeleteAll taxes should be abolished, of course, but the "Fair" tax will be an addendum to the income tax. With all of the political deals that go on behind the scenes, and with the exponentially growing debt problem in the U.S., politicians will never "replace" a tax system; they will simply add to it.
So, is it wrong to visit Huckabee's site and sign on as Mike Izasham?
ReplyDeleteMichael Labeit said... "A national sales tax is preferable over the income tax, hence we should pursue a national sales tax as a substitute. Don't make the perfect the enemy of the good."
ReplyDeleteI was taught that before there was an income tax there was a sales tax similar to a national sales tax and it fell on the poor disproportionally as the rich could do things to avoid the tax. Things such as owning livestock, slaughter it themselves and store it in bulk.
Not that doing that to avoid a tax is bad or anything, but the poor have little means to do so and the burden which is "heavier to carry" falls back on them the same as today. In fact, that's what I was taught was the main selling point of an income tax back then, to avoid letting the rich not pay taxes. Funny how that worked out.
That's Just what I was taught, by the government, so it's likely a slanted view, I don't know.
There is no just way to collect 20% of the production of the American people for the benefit of those connected to the government in a way which is "fair." This was my position when I was a minarchist.
ReplyDeleteA sales tax will kill those who saved to this point. They paid up to 40% tax when they earned it. They paid tax on any nominal interest they made. They'll pay a huge national tax when they spend it. If you do the socially beneficial thing and actually PRODUCE then you must "share the burden" of supporting the political class. Why bother?
I've read the book, albeit quite a few years ago, and I don't recall the Fair Tax being billed (no pun intended) as a supplement to the income tax. If it's implemented in full, if I recall correctly, it would abolish the IRS, simultaneously acting as a "voluntary" tax to replace the income tax and all other forms of taxation.
ReplyDelete@Justin:
ReplyDeleteI own the book, and it's personally signed by Neal Boortz (I used to be a neo-con). I know all about the Fair Tax. However, believing that the Fair Tax as is will make its way into law is being naive. In the political world, taxes never go away. Political deals would be made to make the Fair Tax another tax vehicle to raise revenue.
So they are going to replace the income tax with this "fair" tax? HA!
ReplyDelete