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  1. #1
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    from the neil boortz site.


    LET'S DEMAGOGUE THE FAIR TAX

    Perhaps you noticed that in quite a few congressional races around the country Democratic candidates have been attempting to frighten voters into believing that the evil Republican candidate is going to burden them with a horrible new tax. More specifically, the wicked Republican is going to add a 23% federal retail sales tax on everything they buy .. and this is in addition to all the other taxes they're already paying!

    Effective politics? You bet! Can you imagine how frightened some middle or lower income American would be at the prospect of paying another 23 cents on the dollar for everything they bought? If I believed that a Republican was going to do such a thing ... hell, I"D vote for the Democrat. And there aren't many things that could cause me to vote for a Democrat. A threatened beheading might do it, but I'm not even sure about that.

    The big problem with this particular Democratic campaign charge is that it is simply not true. It's a lie. Not only is it a lie, but every single Democrat who has made this charge against their Republican opponent knows it to be a lie. In the Boortz book, that makes these Democratic candidates, and that includes Congresswoman Denise Majette running for the U.S. Senate in Georgia, and Inez Tenenbaum who is running against Republican Jim DeMint in South Carolina, bold, intentional, premeditated liars.

    I've been studying the Fair Tax proposal in its various forms for 20 years. I am convinced that this plan to replace virtually all personal and corporate taxes with a national retail sales tax would bring a period of transformation and economic growth to America such as has never been seen before. On top of that, it would be a financial boon to the poor and the middle class.

    First ... A Brief Overview.

    The Fair Tax (HR-25) would eliminate all personal corporate and personal federal income taxes. It would eliminate all federal payroll taxes, including Social Security and Medicare. The Death Tax ... gone. Capital gains taxes ... gone. Gift taxes ... gone. Excise taxes .. gone. In the place of all of those taxes we would have one national retail sales tax on all purchase at the retail level. This means you would get 100% of your paycheck. The amount you place into an investment .. not taxed. The amount you put into a savings account .. not taxes. Money you give to your kids ... not taxed, neither to you nor to them. You make a consumer purchase, you pay the federal sales tax.

    One more thing. The Fair Tax plan calls for the repeal of the 16th Amendment. That's the Amendment that brought us the federal income tax.

    When the Fair Tax plan was first being developed it was believed that in order to be revenue neutral ... that is, to make sure that there is no decrease or interruption in the flow of tax revenue ... the national sales tax would be around 23%. I'm led to understand that soon-to-be-released research will show that the actual tax would be around 20% or slightly less. Since I've already run the numbers, we'll stick to the 23% figure for the purpose of this essay. Call me lazy.

    So ... let's get on to the Democrat's charges that these evil, wicked, mean and nasty Republicans are plotting a financial Armageddon for poor and middle income Americans.
    What Happens to Poor and Middle Income Americans?

    OK ... let's put on our sensitivity hats for a few minutes here and think of the consequences of the Fair Tax Act on our nation's poor, poor, pitiful poor. After all, they can hardly afford a 23% sales tax when they're living paycheck-to-paycheck in the first place, right?

    Remember ... right now, for the most part, those whom we define as "poor" aren't paying any income tax anyway. In fact, many of them are getting checks from the government. The absurdly-named Earned Income Tax Credit, for example. So, how can these people survive if suddenly they're paying a 23% retail sales tax?

    There's no doubt that any implementation of the Fair Tax would fail in short order if nothing were to change except that the poor would be paying today's prices for a gallon of milk or a loaf of bread, plus a 23% sales tax. But ... that would be far from the reality under the Fair Tax. Under the Fair Tax the poor won't only survive, they'll positively thrive! The Fair Tax could turn out to be the best poverty-fighting tool devised in this country since the concept of hard work.

    Let's begin by considering two realities.

    First, remember, please, that the poor, along with everybody else, will no longer have Social Security taxes or Medicare taxes withheld from their paychecks. Whatever they earn, they get on payday. For most of them this means an immediate 10 to 15% increase in their earnings.

    Second. There's that 22% in imbedded taxes buried in the cost of all consumer goods. This isn't my figure; it comes from respected economists. That 22% is sitting there in virtually everything Americans have to buy.. and that includes poor Americans. As soon as the competitive forces of the free market work their magic, and they always do, consumers, including the poor, will be paying at least 20% less for virtually everything they buy, including the basics of food, clothing, shelter and transportation. Yes .. they'll have to pay the new national sales tax, but when you factor in the lower prices caused by the disappearance of the embedded taxes you'll see that the total price paid for consumer goods will remain very nearly the same.

    So ... just considering these factors, the Fair Tax delivers a winning hand to people living in or near to what we call poverty. They get every penny they earn on payday, and when you factor in the Fair Tax and the lower prices, they're actually spending less of their money for a retail purchase than before.

    A practical example: Let's pull out the calculators. Let's say that a single mother with two children spends $45 a week on groceries. The removal of the 22% embedded tax would bring the price of those groceries down to $35.10. The sales tax would be $8.07. This brings the total price to $43.17. That's less than our poor mother would have paid under today's tax system. This single mother, whom we'll consider "poor," has just received a 10% to 15% increase in her weekly paychecks, and she's paying less at the grocery story for her basic necessities! Does that sound like such a rotten deal to you?

    At this point you should be thoroughly convinced that the Fair Tax would actually benefit, rather than harm the poor. But, then again, maybe not. Perhaps you were educated in government schools, or you're just hard to convince. Sit down. Here's where I close the sale.

    The Rebate

    The folks who wrote the Fair Tax plan knew that burdening the poor with a 23% retail sales tax would doom the plan from the outset. They decided to devise a way were nobody, rich or poor, would ever have to pay the sales tax on the basic necessities of life. So, under the Fair Tax plan every consumer will receive a credit to their checking account or to a debit card equal to the sales tax that person would be expected to pay on the purchase of the basic necessities of life for that month. The size of the monthly payment will be based on the government's published poverty levels for various sized households. Considering the number of checks and financial transactions of this type the feds undertake every single month, this is entirely "doable."

    Here's an example of how the rebate payments would have worked in 2003.

    You are now a married couple with two children. The Fair Tax Act sets forth a formula for computing the poverty level, based on government figures, which negates any marriage penalty. Under the Fair Tax Act in 2003 you would have been granted an annual consumption allowance of $24,240. This is what the government would assume you would have to spend during that one year to buy the basic necessities of life for your family. The sales tax on this amount would equal $5,575. The government will rebate this amount to you in 12 equal monthly installments of $465. It's clear .. you're better off, MUCH better off, under the fair tax plan.

    But what about a single woman with one child? Her monthly rebate in 2003 would have been $232. The lowest rebate payment would be to a single person with no dependents. That person would receive $172 per month.

    Now ... bear in mind, this rebate isn't only paid to the poor. It is paid to everyone, rich and poor alike. The purpose here is to make sure that no American has to pay the Fair Tax sales tax on the basic necessities of life. Unlike the present income tax system, the Fair Tax treats each and every person in this country exactly the same. This, of course, presents somewhat of a problem to politicians who like to use the tax code to foment class distrust or outright warfare.

    OK ... let's add it up for America's lower income citizens:

    1. They get their entire paycheck.
    2. Even with the sales tax, and considering the drop in prices, they'll be paying essentially the same for everything they buy.
    3. They get a check from the federal government every month to rebate any sales taxes they had to pay.

    Though their tax returns aren't that complex, let's also include the time these the poor (all of us, really) will save by not having to keep tax records or file tax returns.

    If you're looking for some reason to oppose the Fair Tax plan, you're going to have to find a better excuse than its effect on the poor.

    The Democrats who are using sponsorship of the Fair Tax proposal against their Republican opponents know the real story. They also know that for the most part the media doesn't understand the plan and will make no effort to learn the truth. Print this, copy it, spread it among your friends. Expose the lies of Denise Majette and Inez Tennenbaum and other like them. This tax reform idea is simply too good to allow it to be destroyed by desperate campaign lies
    i wanted to put a picture here

  2. #2
    Until Americans begin doing their own homework .... on issues of great importance .. like this one here ... they will continue to fall for stories such as: "The sky is falling".

    And NO ... that was not coined famous by Chicken Little. It was coined by the infamous EPA!


    Believing lies is a tradition here ... it goes hand in hand with tax laws.



    Thankfully, not everyone is like this. Many do their homework and know what the score is.

  3. #3
    Join Date
    Dec 2003
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    2,432
    Current tax laws favor citizens who donate to charity, purchase homes, have kids, and don't make a lot of money.

    What is so bad about the system we have now?


  4. #4
    Join Date
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    Originally posted by bigtime
    Current tax laws favor citizens who donate to charity, purchase homes, have kids, and don't make a lot of money.

    What is so bad about the system we have now?

    most people don't donate to a charity for a tax break. the amount of break for those donations is miniscule. what about those people who give to the needy without going through a recognized charity, they don't get a break. how's that fair?
    to get a break for your home you must be making payments on it. with the recent low interest rates, those deductions are going to be less. you are actually penalized with the current system if your house is paid for.how's that fair?
    yes you get a tax break if you have kids, but should you decide not to have, or cannot have children you are penalized. how's that fair?
    people who don't make a lot of money. what do you call a lot of money? the trully wealthy get their money through tax free dividends instead of salarys. how's that fair?
    what about the business owners on this site, will their families be able to pay the inheritence tax, or will they have to sell the business? how many family farms have disappeared due to the inheritence tax. how's that fair?
    what about the illegal aliens who don't pay taxes now. with the new system they will be taxed like everyone else. what about the drug dealers driving around in their $100k cars and suvs. they don't pay taxes now but they will under the fair tax act.
    there is a lot of complaining about outsourcing of jobs. one of the major reasons for this is our tax laws. how many companys do you think would flock to this country if they knew they could come here and do business without tax penalty's. i don't think the construction industry could keep up with the new building that would take place.
    i wanted to put a picture here

  5. #5
    Trey, ya havin' a rough night? I'm not meaning to insult you.

    If your house is paid off, I applaud you.
    If you give to the needy and dont like to have records showing publically that you did this ... that is great!



  6. #6
    Join Date
    Aug 2001
    Location
    forney texas
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    and best of all, the 50.00 fillup at the gas pump would jump to 61.50, immediately. If it ain't made here Tax it.

  7. #7
    Originally posted by acmanko
    and best of all, the 50.00 fillup at the gas pump would jump to 61.50, immediately. If it ain't made here Tax it.
    That's probably true...but if you had $100.00 (after taxes)you would have $50.00 left...

    Now, if you had $150.00 (without taxes)you would have $88.00 left....

    Do you need someone to draw you a picture numbnutz!!

  8. #8
    I remember about 15yrs or so ago, someone was trying to push this same deal and he was using 10%. He claimed this country would be out of dept in just a few years and have in the trillions surpluss in just a few years after that. But he got blackballed and you never heard from again, Maybe he ended up being fish bait.
    I thought it was a great idea then and now with a better understanding think it's a great idea now!!
    Thanks tlcartman!!

  9. #9
    Join Date
    Aug 2001
    Location
    forney texas
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    Do a little research on the subject. How do you think the Government paid its bills prior to an Income tax.. Before WW11, when the U.S. was mainly an Agricultural state, the sole source of revenue was from duties paid on everything that entered the country. After the war It took money to be a world power and what we were getting wasn't enough. Now all you worrying about deficits and whether your granchildren will pay the price, want your children to be taxed now on everything the buy. Hypocrites all.

  10. #10
    Originally posted by acmanko
    Do a little research on the subject. How do you think the Government paid its bills prior to an Income tax.. Before WW11, when the U.S. was mainly an Agricultural state, the sole source of revenue was from duties paid on everything that entered the country. After the war It took money to be a world power and what we were getting wasn't enough. Now all you worrying about deficits and whether your granchildren will pay the price, want your children to be taxed now on everything the buy. Hypocrites all.
    With this plan there will be no deficit so our children and grandchildren won't have to pay for it!!

    We are being taxed on everything we buy now....AND pay Income tax, state tax, property tax, exise tax!! I personally have NEVER seen sales tax go down!! With this plan you will only pay a sales tax, though higher will be much less of a burden on future generations by having to pay sales tax ONLY and having much more money left in there pocket at the end of the month!!

    So tell me where this hurts our children/grand children?

    1) Country will be in a surplus, No dept for our children/grand children!!

    (example only)
    2)Net income of $2500/mo without income tax. refund for necessities aprox $400/mo total income $2900/mo
    Net income of $2000/mo with income tax.

    3)No IRS, no tax filing.

    So "Hypocrites" I don't think so!!

  11. #11
    Join Date
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    Location
    forney texas
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    Hey goofy, with this plan, if you give your child money and he/she buys anything , he/she will be a taxpayer. Everybody is taxed no exceptions.

  12. #12
    Let me say before the flames, i am in favor of the fair tax act. However....I find it extremely difficult to believe the poor wont be adversly affected. Not a word has been mentioned about the already established state income or sales taxes that will be heaped up on top of the 20 to 23% already mentioned. Take for example that you reside in a state that has an income tax of 3%, and a sales tax of 9%. Taking the high figure, 23, and adding the 9 makes the total now 32% on retail sales, plus the 3% on your income for the year.

    Again, i am FOR this act. If only to do away with the IRS, i would be beside myself. But the moving around of numbers, and the proposed "trillions" in debt relief, are meare projetions that have no basis in fact. Nobody can project with any certainty exactly how the economy will be effected by this untill it happens. What will be the effect on exports? Do we really believe the retailers will adjust their prices just to be competitive?

    What is 32% of a 20.000 dollar car? In a industrial based economy, I can see where the poor will be affected. It has always been incredulous to me that we are penalized for being married and not having kids, and i am for anything that will change that. But let's be real and admit that after the change people will be no better off than they are now. their lives will be different, but not better. Poor folks will still bear the brunt of the tax burden, one way or the other.

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