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FairTax’s most important benefit: freedom

Posted: August 28, 2014 - 9:50am  |  Updated: August 28, 2014 - 3:14pm

Arecent headline for a Homer News letter to the editor  caught my attention — “National sales tax wrong for Alaska.” The author was Mike Wenstrup, chair, Alaska Democratic Party. His purpose was to counter Mead Treadwell’s endorsement of a national sales tax which is known as the FairTax. To be expected, Mr. Wenstrup ignored some very important truths.  

To make his case, Mr. Wenstrup charged a 30 percent sales tax would be added to existing prices. Not true for several reasons — the first is that the FairTax applies only to new goods and services. Goods are taxed only once under the FairTax® so there’s no tax on used goods. 

The 30 percent number is deceptive if your objective is to score the FairTax against the Income Tax. The 23 percent FairTax rate is calculated the same as the marginal tax rates found in the IRS Form 1040 instruction tables. It’s called the tax “inclusive rate.” The 23 percent rate is included in the shelf price. If you buy a $1 pencil, 23 cents goes to the feds and the merchant retains 77 cents (.23 divided by 1 =23 percent). State and local governments use the tax “exclusive rate.” Using the exclusive rate method one would divide the 23 cents by 77 cents and get 30 percent. Mr. Wenstrup likes that method. FairTaxers say take your choice, you are better off with the FairTax using either method.

Everything we purchase has embedded in the price an amount resulting from administering the extremely complex and burdensome income tax system. Dr. Karen Walby, PhD, estimates that 12.5 percent of the production costs of United States-produced goods are accounted for by corporate income taxes, the employer’s portion of payroll taxes and the enormous compliance costs. When this 12.5 percent is eliminated, U.S. producers can lower their prices to consumers by that amount and still realize roughly the same profit margin. Since foreign produced goods would not benefit from the elimination of the current U.S. tax system, foreign products would increase in after-tax sales price by roughly the full amount of the new sales tax — call it 23 percent or 30 percent as you will.

Every economic study that has been performed on the FairTax shows the U.S. economy growing at a faster rate and unemployment being significantly reduced. This is quite possibly the FairTax’s biggest economic benefit. It increases the demand for U.S.-produced goods around the world while eliminating taxes on U.S. production. The economic impact of shifting the purchasing decisions of billions of consumers would increase availability of trillions of dollars in fresh new capital.

What about those higher prices? Let’s examine how the FairTax would really affect rural Alaskans, in fact all Alaskans. First, they will no longer be subject to payroll taxes, a total of 7.70 percent. If their annual income exceeds $10,000 or more, they will no longer have to pay a 15 percent marginal income tax. So they could realize about a 23 percent pay raise. An employer will no longer have to pay the 6.25 percent FICA share so they could choose to give the employee 6.25 percent pay raise. So, the employee could even experience about a 30 percent increase in take-home pay.

Mr. Wenstrup also neglected to mention the Family Tax Refund Allowance called a “prebate.” The prebate is dispersed at the beginning of each month to ensure no American pays federal taxes on spending up to the poverty level so family members can buy basic essentials free of tax. The amount is determined by the number of persons in the household. For example: The monthly rebate for an Alaskan family of four is $754. A family of 4 could spend up to $39,320 annually without paying a penny in federal taxes. An added benefit for Alaskans — no federal taxes due on their PFD. 

The 21st century has been called the globalization century by astute observers of world-wide economic trends. The increased level of global competition that we see is a harbinger of things to come. If we continue to cling to an outmoded and inefficient mechanism for collecting the taxes for government needs, the further behind we fall in global competition. 

The Democratic Party has a distinguished history as the champion of working folks. The FairTax is a non-partisan proposal, developed by surveying the American people across the political spectrum to find out what they want in a tax system. FairTaxers welcome Democrats to the movement to modernize our tax system and ensure that we do everything in our power to ensure that the United States of America competes globally in the 21st century and remains the land of freedom and economic opportunity. 

And remember the most important benefit. It’s called freedom, a benefit that cannot be scored, and a benefit that millions of patriots have paid a high price.

Wiley Brooks is the Alaska state director for the Americans for Fair Taxation. He lives in Anchorage and retired as a lieutenant colonel in the U.S. Air Force.

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YANKEE
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YANKEE 08/28/14 - 05:18 pm
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The FairTax Fraud

Mr. Brooks, AFFT AK Director merely spews more FairTax deceptive propaganda.

If you buy something that costs $100 BEFORE adding FairTax, you add $30 (NOT $23) in tax, total $130. On this planet, that is a 30% (NOT 23%) SALES tax - the FairTax is a SALES tax NOT an Income Tax.

Prices WILL go up 28-30% - see the long my paragraph on that in my Summary Letter after these introductory comments.

The Prebate is advertised only to keep the poor from paying any tax (as if we all agreed with that - I don't), but it actually gives them free SS/Medicare AND a big Tax Welfare check - see the FairTax INCREASES TAX WELFARE on my website sceldridge.wix.com/sceldridge

The rest is economic claptrap, mere sales hype. My Flat Income Tax will spur our economy and our worldwide competitiveness.

The “Fair Tax” is a Fraud – we need a 10% “Tithe” Tax!

I am a retired lifetime tax consulting professional (JD, LLM in Taxation, CPA, co-author of a 3 volume tax treatise, lecturer), with no financial stake in ANY tax system. This only a brief summary - for supporting details of all comments, call Stephen C. Eldridge tel. 423-532-7337. WE: sceldridghe.wix.com/sceldridge

The “Fair Tax” (“FT”) is a fraud – it is MORE wealth redistribution, AND a financial scam.

In their own words, FT proudly advertises that it is MORE Progressive (more welfare).

Of prime importance, the Prebate is NOTa real refund of FT paid as it appears to be. It is a new $600B ENTITLEMENT, which would have all Americans receiving a substantial monthly check from the federal govt – a very bad idea for those of us who are not Socialists. We simply cannot afford yet another huge entitlement that will only be increased in the future.

The FT and the Prebate would leave the working poor making no contribution at all to funding the federal budget and paying nothing even for their personal SS/Medi benefits. The FT and the Prebate FT then extend tax welfare to the non-working poor – and also take the next Progressive Cloward-Piven step towards giving SS/Medi to all regardless of work, by removing the tax “penalty” for reporting SS Wages, thereby “inviting” the fraudulent reporting of SS Wages (as noted by other authors).

The Prebate is apparently calculated to merely repay the poor for any FT they pay, but actually would pay them far MORE than any FT they might pay (by “assuming” the poor spend more than the underlying HHS Poverty Guidelines and also by “assuming” they will pay FT on all of their purchases, but they WON’T) - and FT also provides free SS/Medi to the working (and some non-working) poor.

FT’ers today still market the original FT lie that while workers get a large raise, retail prices will remain the same as before the FT, - but that just cannot be true. FT is merely supposed to changes the method of paying the same total dollars of tax we pay today, so that if you get a big raise, prices must go up by the same total dollar amount (except for a minor amount for savings in compliance costs) . Retail prices will rise by 25-30%. Initially, FT-retained Harvard Prof. Dale Jorgenson who first said prices would come down by 22% “embedded taxes” (over time) and go up $23 (30% x $78) for FT. He later explained that the 22% “assumed” that employees surrender their “raises” - thus his true maximum price decline is about 7% (i.e., at least a 21% price increase after adding 30% FT). AFFT’s Chief Economist, Karen Walby then said the decline would be 12.5%, but when one corrects her figures, they agree with Jorgenson). Note that both of their figures assume that 100% of their maximum potential decline will occur. Most of the 7% is the employer’s share of SS/Medi taxes which may be paid out in higher wages. Generously assuming that ½ of that 7% maximum is passed on to customers translates into a 25-30%% price increase after adding 30% FT.

The FT results in a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our retail-sales-sensitive economy. 40% = 30% (not 23%) FT + e.g., 10% S/L sales tax and 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes zero evasion and zero intentional reduction in spending and zero migration from new to used goods).

In addition to that 40-70% tax, the FT contains several hidden taxes (but FT’ers fraudulently say that “the FT is fully transparent - just look at your receipt and you will see all of the FT you will pay”). 1) FT’s 30% rate is really 42+%; the 12+% is hidden by having fed + S/L govts paying FT (which is likely unconstitutional) – ultimately, they must get that money from you. 2) The initial 30% rate is 1-5% short and that plus any other revenue shortfall will have to be made up by raising more FT (or a New Income Tax), 3) The fed budget will rise for a) higher SS benefits and higher COLA’s payable to all federal retirees, both induced by FT’s price increase of nearly 30%, and for b) fraudulent new SS benefits invited by FT’s removal of the “tax penalty” for reporting SS Wages (as noted by other independent authors ) – more FT (or a New Income Tax) would be required to fund these. Used property is advertised as being exempt from FT, but may well not be exempt because of requirements that FT must have been paid and 3 listed credits against the FT were not claimed.

The FT’s new IRS (i.e., the STAA) may well be far worse, far more invasive than today’s IRS (the buyer is liable to pay FT and get/show a receipt – The STAA may audit consumers) – also we may well have to file an “Annual FT Summary”.

As also noted by others, the FT leaves us more vulnerable to winding up with BOTH a New Income Tax and the FT. Congress will repeal the FT’s laughable Sunset Clause and (with the 16th Amendment surely still firmly in place) enact a New Income Tax which I believe is Congress’ true ultimate objective – i.e., to be able to grab even more of our money to redistribute to those who will vote for them and contribute to their campaigns.

Seniors will start to pay for SS/Medi again and some will pay a 2nd-3rd tax on their earnings. Many middle class seniors will pay more FT than they would have paid in Income Tax and many will lose purchasing power because of, 1) the nearly 30% price increases and 2) the higher S/L & federal taxes required because they must pay FT and can only get the funds from us, and 3) higher federal taxes due to higher SS & pension COLA’s and fraudulent SS benefits.

The FT promises grand economic benefits which are all unpredictable - mere Hype & Change. The FT employs marketing hype and hyperbole, making countless unsupportable claims.

What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate, with business income taxed to shareholders on a very simple basis (i.e., no corporate income tax) - See H.R. 1040 (which has been included in Paul Ryan’s new budget), but with changes as noted here (IRS is neutered, 1 page tax filing, everyone pays - more evolutionary). Call your representatives in Congress and let them know that this is what you want.

rockyfatcat
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rockyfatcat 08/28/14 - 06:22 pm
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Mr. Stephen C. Eldridge merely spews more deceptive propaganda

Mr. Stephen C. Eldridge You deceitful reprobate, retired lifetime tax consulting professional, with no financial stake in ANY tax system, other than one that keeps the IRS around, Who is paying you to spew this nonsense? Have you no shame? You claim to be open minded, but the web is packed with your nonsense. You must be one of those guys that refuses to admit that the sky is blue on a clear and sunny day.
You’re touting the continued existence of the IRS. The FairTax is a statically scored revenue neutral 23%. You continue to misrepresent a sales tax of 23 cents on the dollar as 30%, or are you that bad at math, or is some of that new math, or is this just liberal attack math?
AFFT paid like 18 million dollars to get the 23 percent number. Optimally the tax rate should be less than 10%. God only wants 10%, why should the government ask for, or get more? But that is not the issue. The issue is anytime there is a change to our tax code it must be statically scored and revenue neutral. What does that mean? You have more initials after your name than I do, but you apparently either don’t know or don’t care to.
Statically scored and revenue neutral, vs. dynamic scoring.
Let me give you a few examples:
Our country has the highest corporate tax rate in the world. There is over 2.1 trillion dollars parked overseas, avoiding 700 billion in taxes. Burger King is in the news for joining this avoidance. Under the FairTax, the corporate tax rate would be zero and the 2.1 trillion can come home untaxed. 2.1 trillion dollars returning to our country could grow our economy and create jobs here in America. Can’t count it, because it would be dynamic scoring.
What is the hidden economy? Drugs, Gambling, prostitution, under the table jobs, unreported income, my son mows your lawn and you give him 50 bucks. The estimated total for all that activity is estimated to be between 1.5 and 3 trillion dollars every year. So Under the FairTax, anytime any of that money visited a cash register or supermarket, we have income other than we can count under our current system or dynamic scoring and it cannot be counted.
There has been over 14 trillion dollars (and climbing) of business and investment (like burger king) that has been chased out of our country by our tax code. Back in the day, when day when the Daimler motor company merged with Chrysler. Executives wanted it to be headquartered in Detroit, the automotive capital of the world. Little problem, if they were based in Germany they would pay the German government for vehicles sold in Germany. If they were based in the United States, they would have to pay the United states for every vehicles sold anywhere in the world. Once again the FairTax would attract business and investment to return here creating jobs and growing our economy here.
But I suppose you are a good progressive and can’t stand to see our economy grow, create jobs for Americans, and would rather see workers in Red China working in a sweat shop, than eliminate good old Karl Marx’s precious income tax.
Your response that we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate falls into the hands of the best politicians money can buy.
Our original income tax was a 6 ½% flat tax that only applied to the richest 5%, and it was a commonly accepted FACT that wages were not considered income. Today that which was taxed would be considered capital gains tax, and wages are taxed at a higher rate. And the 20,000 times our politicians have fiddled with the tax code have grown it to over 70,000 pages.
If a flat tax were passed, our politicians would be right back at it, getting re-bribed to re-enact the same loopholes and deductions that turned it into this behemoth.
No sir. The requirement for citizens to submit to unconstitutional demands for information must end. Lois Lerner and 94,000 IRS employees need to either go away or turn into cash register police.

YANKEE
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YANKEE 08/30/14 - 03:30 pm
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READERS: IN RE Rocky's Rant

Readers: Rockyfatcat here and elsewhere, rants and raves superficial FairTax one liners that are just dead wrong. See my website for details: sceldridge.wix.com/sceldridge

It will take me some time to outline each of his nonsensical, statements – maybe more on Sunday.

I spew facts and analyses – Rocky does not begin to understand that.

For now, his silly insults aside, NO-ONE is paying me to tell the truth and expose the FairTax for the Progressive scam that it is.

If the sky is blue, I will say it is blue.

I tout the continued existence of a NEUTERED IRS. The FairTax swill bring us s NEW IRS, plus it will bring back the old IRS.

He is too ignorant to understand that dynamic scoring does NOT mean concocting economic fantasy. It means using rational taxpayer changes in tax strategy.

A $1 item BEFORE adding FairTax requires a $30 tax(not $23) total $130 is a 30% Tax NOT 23%. You decide whose math is fuzzy.

“AFFT paid like 18 million dollars to get the 23 percent number” - They overpaid by $17,9MM. I don’t care how much thet paid (mostly to market the FairTax), I showed you the calculation above.

Rocky, Please produce a listing of the US $2.1T and the owners’ promises to bring it back upon adoption of the FairTax (it;s a wild claim – and how much would come home with a 10% US tax rate and no tax on bringing home foreign earnings.

2 UT economusts said that the underground economy
would pay no more in FairTax than they pay today inembedded taxes.

I am extremely anti-Progressive.

A senior FairTax propagandist said the FairTax has the same vulnerability.

The IRS will likely turn into auditors of CONSUMERS - AND the old IRS will come back to life when the FairTax facilitates Congress’ enactment of a NEW Income Tax.

YANKEE
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YANKEE 08/30/14 - 03:47 pm
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YANKEE
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YANKEE 08/30/14 - 03:52 pm
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ggeett37
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ggeett37 08/28/14 - 08:23 pm
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Mr. Eldridge's comments

Readers BEWARE: Mr. Eldridge does not write the truth.

rockyfatcat
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rockyfatcat 08/29/14 - 05:35 am
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Mr. Stephen C. Eldridge correct me where I am wrong

The FairTax is statically scored revenue neutral 23%. Current law requires all changes to the tax code be statically scored revenue neutral. True or false?

If it isn’t required I would demand a 10% FairTax rate.
You continue to misrepresent a sales tax of 23 cents on the dollar as 30%.

So the sale of a one dollar item with a 23% sales tax equals $1.23. True or false?

I gave 3 examples:
Our country has the highest corporate tax rate in the world. Under the FairTax, the corporate tax rate would be zero and the 2.1 trillion can come home untaxed. 2.1 trillion dollars returning to our country could grow our economy and create jobs here in America. True or false?

The estimated total the hidden economy is estimated to be between 1.5 and 3 trillion dollars every year. The FairTax Taxes that activity and our current system does not. True or false?

14 trillion dollars (and climbing) of business and investment (like burger king) that has been chased out of our country by our tax code. If and when that business and investment returns here it could help create jobs and grow our economy here. True or false?

Karl Marx’s 10 PLANKS stated in the Communist Manifesto included progressive income tax as a step to subjugate those in free countries. True or false?

Your response that we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% flat tax. So 100 years, 20,000 changes later our tax code is over 70,000 pages. True or false?

The 5th Amendment No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation

So the constitutional right to free from being compelled in any criminal case to be a witness against himself doesn’t apply to the income tax forms. True or false?

44 U.S.C. 3500 – 3520, also known as the "Paperwork Reduction Act" (PRA). In Section 3512 of the Act, titled "Public Protection," it says that no person shall be subject to any penalty for failing to comply with an agency’s collection of information request like the 1040 income tax form. If it doesn’t display a valid OMB control number. Under this law no American can be required to fill out a 1040 form. True or false?

http://www.givemeliberty.org/rtp2/updates/update2006-06-09.htm

All of your spewing of lies is an attempt to keep in place a broken system. True or false?

ChuckB
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ChuckB 08/29/14 - 08:51 am
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The FairTax Fraud????

When a FairTax® detractor can back up his/her erroneous (and in most cases false) statements about the proposal with any studies that can counter over $22 million privately funded and spent on scholarly research done by world renowned economists from Harvard, Stanford, MIT, Brown, Suffolk Universities to name a few, I’d be happy to look at it. Otherwise, they should stop the detractions and do something constructive with which they are familiar.

JoeAllen
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JoeAllen 08/29/14 - 09:08 am
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Yes or Yes ... !!!

Yes, I want to replace the national INCOME TAX with a national SALES TAX ... !!!

Yes, I can also accept the idea of replacing the national INCOME TAX with the Eldridge FLAT TAX.

Somehow, Eldridge and the FLAT-TAX advocates, need to join forces with the FAIR-TAX people, to abolish their MUTUAL ENEMY (i.e., the present national INCOME TAX).

The present on-going impasse between Eldridge and the FAIR-TAX people, reminds me of Protestants and Catholics battling over the level of devotion due to Mary, the mother of Jesus, while agreeing 100% on the worship due Jesus.

Nail238
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Nail238 08/29/14 - 10:53 pm
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Mr. Eldridge's comments

I’m not a shrink, but I think Yankee may be mentally deranged. I hate to be insulting but MAN GIVE IT UP. I know you have dedicated your life feeding at the trough of the income tax system but we all come to a time when we learn there is ‘a better way to skin a cat.” I congratulate you on the credentials you earned to fill out tax forms saving clients substantial sums. But the time has come for you to retire and enjoy your bountiful earnings. For me – I’m going to listen to the below list who also have very impressive credentials. They are all supporters of the FairTax®.
Professor David Burton, University of Maryland
Dan Mastromarco, Argus Group
Steven Moore, Economist with The Heritage Foundation
Professor Dale Jorgenson, Harvard Univ
Bill Beach, Economist with The Heritage Foundation
Jim Poterba, The National Bureau of Economic Research
Professor George Zodrow, Rice U & Baker Institute for Public Policy
Professor Joseph Kahn, MIT
Vernon Smith, Professor of Economics at George Mason U and Nobel Laureate in Economics.

YANKEE
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YANKEE 08/30/14 - 07:06 am
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My reply to ggeett37 (Glen Garrett) , whose mind is CLOSED

Notice this pathetic attempt to scare naïve readers with a “warning” (which he posts often).

He never specifies exactly what I said is ”allegedly” untrue so that he never needs to offer any substantive, factual comments to support his claims.

When he makes some of his own false claims about the FairTax benefits, the senior AFFT officers admit that he is wrong (lying). Such is the nature of Mr. Garrett, a FairTax propaganda zombie.

YANKEE
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YANKEE 08/30/14 - 07:08 am
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My reply to RockyFatCat, whose mind is closed

Yes, it is my understanding that GENERALLY bills are scored statically, but I think I read that they may use some dynamic scoring. However, I don’t think that you understand what dynamic scoring really means. It is my understanding that dynamic scoring means only that some changes in taxpayer behaviors can be taken into account, e.g., a lowering of the cap gains tax would likely result in taxpayers harvesting more gains resulting in more tax revenue – it does NOT mean that they consider wild speculative economic miracles but can only use CBO’s economic assumptions about the next ten year period. Thus, AFFT wild economic claims remain mere fantasy and CANNOT be considered even in dynamic scoring.

Rocky has apparently permanently fallen for the AFFT lie. Rocky, get this straight. If a product costs$100 BEFORE adding FairTax, you must add $30 (NOT $23) – total $130. AFFT gets is deceptive 23% by dividing the $30 tax BY THE TOTAL $130.

Whatever money can come home (Your $2.1T and $14T are myths) can come home WITHOUT the disastrous FairTax – all we need is my 10% Flat Income Tax or just reducing or eliminating the tax on bringing home foreign earnings. Businesses legitimately invest oversees for lower labor costs and to be closer to customers (think of Toyota’s several US plants).

So what if Karl Marx promoted progressive taxes. My Flat Income Tax is infinitely less Progressive than today’s Income Tax. The FairTax is marketed by AFFT as being VERY Progressive – see my paper on my site (sceldridge.wix.com/sceldridge) “FairTax’s Progressive-Socialist Goals).

Steve Curtis, AFFT Board member, when he received the very same challenge about the possibility of that happening to the FairTax, replied that was a vulnerability of FairTax (as well as my Flat Income Tax and the answer is for us to pay closer attention to what Congress does in the future.

Give it up. You have to file a tax return under penalties of perjury.

Rocky might not be stupid (I don’t know him) but he is outrageously deceptive. He asks me if I am trying to keep the CURRENT tax system in place. How can he possibly miss my Flat Income Tax that cuts out 90% of today’s tax code thus making it thoroughly un-comparable to today’s system (the only resemblance is that they are both based on income).

YANKEE
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YANKEE 08/30/14 - 07:09 am
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My reply to Chuck B, whose mind is CLOSED.

If Chuck, or anyone else want to see my back up for my summary comments, please vist my website sceldridge.wix.com/sceldridge.

I explain there that AFFT’s $22MM in “research” is mostly MARKETING and the small amount of economic “research” can predict absolutely NOTHING. “Paid-for” lobbying “Research” is always suspect. AND most of their researchers” do NOT favor the FairTax.

Note also, the unspecific claims that I lie – mere propaganda denigration works on their unsophisticated target audience.

YANKEE
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YANKEE 08/30/14 - 07:12 am
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My Reply to Joe Allen

You offer a great thought, but it needs some tweaking.

YES, we should get together, but in a SENSIBLE campaign.
My Flat Tax is a MUCH BETTER answer to our terrible tax code – the FairTax is WORSE in its own way.

I would like nothing more than for the FiarTax grass roots lobby to come over to my Flat Income Tax and let’s march together and we can get this done for the benefit of the country.

YANKEE
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YANKEE 08/30/14 - 07:15 am
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My reply to Nail928, whose mind is CLOSED

No he is NOT a shrink and I am not deranged.

I HAVE retired and make NO money from today’s tax system that I propose to gut (I have explained that hundreds of times).

Dale Jorgenson (Harvard) said “in trying to replace all 3 taxes, the FairTax takes on far too great a burden for it to carry”.

MIT’s Jim Poterba (who we know personally) does NOT support the FairTax.

Burton & Mastromarco WROTE FairTax bill (and were likely paid to do so).

Some of the others like consumption taxes but have not specifically endorsed the FairTax. In any event WHO CARES – I am not impressed by names, but ONLY what they write in explanation. I have read the BHI papers and find the “assumptions” to be ridiculous (e.g., ZERO evasion/avoidance). Only FairTax’s target audience of the naïve and unsophisticated are swayed by some (false) celebrity name endoresements.

rockyfatcat
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rockyfatcat 08/30/14 - 07:55 am
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So show me how do you turn 23% into 30%?

If a product costs$100 BEFORE adding FairTax, you must add $30 (NOT $23) – total $130. AFFT gets is deceptive 23% by dividing the $30 tax BY THE TOTAL $130.

So hr 25 reads:

``CHAPTER 1--INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC.

``Sec. 101. Imposition of sales tax.
``Sec. 102. Intermediate and export sales.
``Sec. 103. Rules relating to collection and remittance of tax.

``SEC. 101. IMPOSITION OF SALES TAX.

``(a) In General.--There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
``(b) Rate.--`(1) For 2015.--In the calendar year 2015, the rate of tax is 23 percent of the gross payments for the taxable property or service.

So the text of hr 25 is 23%. So where do you get 30%? 1.23 X 100= $123.00 except you keep coming up with 4130.

jbennettatty
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jbennettatty 08/30/14 - 11:32 am
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Is the FairTax(R) Really a Fraud?

Yankee seeks every opportunity to deface favorable postings about the FairTax(R). For some background on Yankee go to:
https://drive.google.com/file/d/0B6dVmCK2Z_e0eDdqSlV4aUJRX00/edit?usp=sharing

jbennettatty
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jbennettatty 08/30/14 - 11:33 am
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Is the FairTax(R) Really a Fraud?

Yankee seeks every opportunity to deface favorable postings about the FairTax(R), and his comments are repetitive. For some background on Yankee go to:
https://drive.google.com/file/d/0B6dVmCK2Z_e0eDdqSlV4aUJRX00/edit?usp=sharing

ChuckB
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ChuckB 08/30/14 - 12:57 pm
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The FairTax Fraud?????

Hmmmm ..... marketing, lobbying????

I'll match these guys to any detractor who has done some addition and subtraction on the back of an envelope:

Professors David Burton and Dan Mastromarco, University of Maryland and The Argus Group
Laurence Kotlikoff, Boston University
Stephen Moore, The Cato Institute
Professor Dale Jorgenson, Harvard University, Nobel Prize Winner
Bill Beach (economist), the Heritage Foundation
Jim Poterba, The National Bureau of Economic Research
Professor George Zodrow, Rice University and the Baker Institute for Public Policy
Professor Joseph Kahn, Massachusetts Institute of Technology

YANKEE
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YANKEE 08/30/14 - 05:05 pm
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Reply to Joe Allen

Joe,

My professional analyses tell me that the FairTax is a financial scam and more Progressive wealth redistribution.

You can base your choice on whatever criteria you chose - BTW, exactly what are your criteria?

YANKEE
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YANKEE 08/30/14 - 05:09 pm
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YANKEE
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YANKEE 08/30/14 - 05:17 pm
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YANKEE
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Points
YANKEE 08/30/14 - 02:43 pm
0
0

Reply to Jim Bennett

I take every opportunity I can to expose FairTax's fraud, which I find intolerable.

Please see Bennet's pathetic Rebuttal to me and my RESPONSE on my website: sceldridge.wix.com/sceldidge

YANKEE
0
Points
YANKEE 08/30/14 - 03:15 pm
0
0

Reply to RockyFat Cat

You have been fooled by the sneaky lawyers who wrote the FairTax statute, but don’t feel badly because I have had to straighten out lawyers and CPA’s who misread the statute like you did.

Please re-read the words AFTER, “23% of the total” – they say INCLUDING THE FAIRTAX.

Thus, $100 BEFORE adding the tax, add $30 tax, total $130. $30 tax divided by $130 (the total INCLUDING THE TAX) is ONLY 23% - pretty sneaky isn’t it.

When most people realize this fraud, they understand that the FairTax merchants are a bunch of slime-balls (we told them that to help them look less deceptive, but they are loathe to admit their deception).

Nail238
0
Points
Nail238 08/30/14 - 03:27 pm
0
0

Stephen Eldridge rants

The below links expose Eldridge for what he is -- a fraud. If you think any of his charges have any validity, please take the time to read them.
http://www.gafairtax.org/answering-the-critics/
http://www.gafairtax.org/addendum-1/

Nail238
0
Points
Nail238 08/30/14 - 03:45 pm
0
0

Rebuttal to all Stephen Eldridge claims

Mr. Eldridge is a gadfly who spends all his wake hours defending a tax system that confiscates personal property and has become totally corrupt. The below link details just how fraudulent his claims are.

https://docs.google.com/file/d/0B6dVmCK2Z_e0eDdqSlV4aUJRX00/edit?pli=1

YANKEE
0
Points
YANKEE 08/31/14 - 04:13 am
0
0

Reply to Roxckyfatcat

Rocky wrote "so the sky is not blue on a clear and sunny day
none are so blind as those who refuse to see." Readers, do you think Rocky is a moron or simply a fraud - what the heck is he saying, specifically?

This clown can only repeat Bennett's pathetic "REBUTTAL" to me (pathhttps://docs.google.com/file/d/0B6dVmCK2Z_e0eDdqSlV4aUJRX00/edit?pli=1)

Please see my website sceldridge.wix.com/sceldridge for my RESPONSE to Bennett's pathetic Rebuttal at http://media.wix.com/ugd/acdb03_cf84c3da09c3475db3a9256e7de35eb4.docx?dn=%22My%20Response%20to%20AFFT%27s%20(Jim%20Bennett%27s)%20Rebuttal%20%20to%20me%20(7-24-14).docx%22

YANKEE
0
Points
YANKEE 08/30/14 - 04:20 pm
0
0

Reply to Nail238

These FairTax zombies expose themselves to be truly pathetic.

He FALSELY claims I try to “defend a tax system that confiscates personal property and has become totally corrupt.” He cannot possibly be stupid enough to have failed to read 1,000x that my Flat Tax makes the current system UNRECOGNIZABLE and eliminates tax preparers and consultants.

Unbelievably, he offers the identical fraudulent claim that Bennett “exposes” me by giving you the same URL to Bennett’s pathetic “REBUTTAL” – see my RESPONSE on my website sceldridge.wix.com/sceldridge – the specific URL for my Response is Jim Bennett (AFTT) responses http://media.wix.com/ugd/acdb03_cf84c3da09c3475db3a9256e7de35eb4.docx?dn=%22My%20Response%20to%20AFFT%27s%20(Jim%20Bennett%27s)%20Rebuttal%20%20to%20me%20(7-24-14).docx%22

ChuckB
0
Points
ChuckB 08/30/14 - 04:23 pm
0
0

The FairTax Fraud????

The "Yankee" doth protest too much, methinks.

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