What is fair about a "fair tax"

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OpinionJournal – Extra: “Fair Tax, Flawed Tax Does adding 30% to the price of every house sold sound like a good idea to you?”

This Article should give everyone second thoughts about a national sales tax proposal called the “Fair tax”

It claims to do away with the bureaucratic IRS but it would also create a new collections, dispersement and enforcement bureaucracy.

The 23 percent figures they like to throw at you is done with very deceptive math. The figure is really 30 percent and even that low ball figure does not reflect what it will actually have to be to be revenue nutural.

In addition to the Federal sales tax you would still have to pay state and local sales taxes as well plus its other taxes. Lets say your state and local sales taxes are now 8 percent. Well, the states would have to increase that sales tax rate or retain all of their present state tax laws such as income tax. So figure if the states also went to an all sales tax system the state and local sales would be about 15 percent. Now even using these low ball figures your sales tax would be about 45 percent on everything that you buy. Of course, they will never collect what they project so your tax would have to be at least 50 percent just to be revenue neutral. And no, these percentages do not include your property taxes and school taxes.

So that $100,000 house you wish to buy now becomes $150,000 and that $20,000 truck becomes $30,000 and that $200 a week grocery bill becomes $300. Your $300 gas bill is now $450 and your $100 electric bill is now $150. Just go across the board on all goods and services that you purchase each year and you will get an idea of how much tax you will be paying. Oh don’t forget that $3.00 a gallon gas is now $4.50 and that $5 Big Mac with soda is now $7.50

Think about what this tax would do. It would drastically stop consumption and cause a depression. Everyone would buy less. It will create a huge gray market of used goods and a black market that avoids paying the sales tax.

I think the IRS and our income tax system sucks but this will suck even worse. I do not think we will ever have a fair tax system until everyone works that should be working and until everyone pays a fair portion of the tax burden.

We also need a government that provides necessary services but stops supporting all the unnecessary services that is now a good part of the cost of our government. it also means a government that does not spend more than it receives. In addition, we need a government that stops allowing all our good paying jobs to be shipped overseas.

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Date posted: Sunday, August 26th, 2007 5:00 pm | Under category: increase taxes
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