The Dirty Little Secrets of the FairTax - Reader comments at The New York Sun

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ScareTax, Not FairTax

Submitted by FairTaxFraud, Dec 17, 2007 06:50

The FairTax is a fraud that shifts the tax burden to the poor and middle classes while making inheritance, gifts, and capital gains totally tax free.

The FairTax really has two tax rates built in. A 30 percent rate for all consumption and an income tax based on how much you consume. For Example:

The working poor spend everything they earn to live on consumption (living paycheck to paycheck) so they are taxed on everything they earn under the FairTax (and most would say "everything they earn" means 100 percent). The rich spend only a fraction of their income on consumption so that are taxed on very little of what they earn. In other words, under the FairTax the poor will pay taxes on 100 percent and the very rich are taxed on only 5 percent (or less).

What You Lose Under the FairTax

1. The Home Mortgage tax deduction - no more deduction your mortgage interest - no incentive to buy a house.
2. The Per-Child tax deduction for dependants - no more help for large families.
3. The deduction for State and Local taxes - tack on the taxes.
4. The College Tuition tax deduction - sorry kids.
5. Roth IRA - will be taxed twice because your money is taxed again when you spend it.
6. Charitable Contributions deductions - no help for the faithful.
7. Child Care Credits - no more help for single moms and poor families with kids.
8. Refinancing Points deduction - no more incentive to refinance.
9. Health Insurance Premiums deduction - no more help for the sick.

What You Gain Under the FairTax

1. New 30 percent tax on every New House or property you buy.
2. New 30 percent tax on Cars, Boats, Campers, Home Appliances, TV's
3. New 30 percent tax on Food, Clothing, Shelter, Rent, Electricity, Gas, Phone Service
4. New 30 percent tax on Medicine, Surgical procedures, Hospital stays, Dental Services
5. New 30 percent tax on Legal Services, Trial Services, Legal Advice, Legal Winnings and losses.
6. Double Taxation on Roth IRA's or retirement money you took as a lump sum.
7. Your consumption is now directly linked to inflation - prices go up - your taxes go up.
8. Interest on Credit Cards, Loans, and Mortgages now taxed at 30 percent on top of what you owe.
9. You now have to pay the government for permission to live in America by paying taxes on all you consume.

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Other reader comments on this article

Comment	By	Date
I am a complete layman in the way of taxation and cannot find the answers to my questions in the... [MORE]	Tami	Dec 19, 2007 03:45
to manufacturing in America when taxpayers opt for purchasing existing large budget items over new ones, to avoid having to... [MORE]	Lew Waters	Dec 17, 2007 23:40
Not much. First of, as we've covered ad infinitum and as you must obviously continue to ignore, prices do not... [MORE]	Tom	Dec 18, 2007 08:45
There is NO price increase. Corporate taxes are omitted and exchanged with the sales tax!!! [MORE]	Mark M	Dec 18, 2007 09:05
You either misread or misrepresent my words. I never said prices go up 30%, I said taxes charged will be... [MORE]	Lew Waters	Dec 18, 2007 13:07
I approached the so-called FairTax with an open mind, but the more I have learned about it, the more biased... [MORE]	sirius	Dec 17, 2007 23:08
So many in fact I'm loathe to address them one by one. My time is valuable, his obviously isn't. 1) All... [MORE]	ctyankee	Dec 18, 2007 09:48
But so would your take home pay! I'm betting that offset would be very much in your favor. [MORE]	thrakazog	Dec 18, 2007 15:34
The constant jabber about the rich and the poor makes me sick. I am far from rich, and alot closer... [MORE]	Tom Kropewnicki	Dec 18, 2007 16:46
"1) All taxes are tied to inflation, as your income rises so to will your taxes." Wrong. Payroll taxes and... [MORE]	sirius	Dec 18, 2007 18:36
Idle: "You call that an argument?Cleese: "Yes"Idle: "Contradiction is not argument." Cleese: "Yes it is." 1) The income tax has brackets... [MORE]	ctyankee	Dec 19, 2007 10:13
Let's see, 30% more income, government grows stronger, poor (and all) covered with prebate, prices stay the same, 11 trillion... [MORE]	Mark M	Dec 17, 2007 19:34
This same article by this same clueless author appeared on Bloomberg.com last week, and here it is again with the... [MORE]	Tom	Dec 17, 2007 14:54
The FairTax is a fraud that shifts the tax burden to the poor and middle classes while making inheritance, gifts,...	FairTaxFraud	Dec 17, 2007 06:50
I am responding to the poster named "FairTaxFraud", who has been all over the net posting verbatim the same silly... [MORE]	Tom	Dec 17, 2007 18:39
With the IRS politicians pick who gets punished with taxes. Corporations are one of their favorites. You even said that... [MORE]	Don J	Dec 18, 2007 10:06
Nobody seems to talk about the worst part of the Fair Tax. Most personal wealth and savings has already been... [MORE]	George West	Dec 17, 2007 01:22
I'd gladly pay the 30% out of my current savings to get the existing tax system removed. Just look at... [MORE]	thrakazog	Dec 18, 2007 15:40
You have no idea of what you are talking about. The DailyPaul does not tell anyone what to do! People... [MORE]	Carolyn	Dec 17, 2007 01:12
Apparently, your newspaper is still ignorant of the nature of the 16th Amendment. It's actually a private law, not applicable... [MORE]	Jeanne Mount	Dec 17, 2007 01:06
The Fair Tax is an idea whose time has arrived. Take home your whole pay check, and pay a sales... [MORE]	Frank Fiordalisi	Dec 17, 2007 09:26
Taxes on earned income is placed on the wage earner by the city, state and federal government for the operation... [MORE]	Gene	Dec 17, 2007 10:33

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