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Reader comment on:
ScareTax, Not FairTax
in response to reader comment: What happens

Submitted by Tom, Dec 18, 2007 08:45

Not much. First of, as we've covered ad infinitum and as you must obviously continue to ignore, prices do not go up by 30% due to the removal of the embedded taxes and compliance costs built into everything new we buy. They'll go up perhaps 10%, and that is easily offset by people's increased spending power when they have no more federal withholding of any kind taken from their paycheck. Then, of course, there's the prebate, which makes a certain portion of your spending untaxed as well. You forgot that little tidbit. Besides, everything has to be new at some point right? There's only so much used stuff. And if the prices of used items increase as you suggest, then guess what? Now the new ones aren't so bad and people buy them. Then the prices for the used stuff go right back down. People like new stuff. They won't stop buying it just because it has taxes built in, especially when they have more money with which to buy it.

The problem with your entire premise, in my estimation, is that you overestimate the unwillingness of the average American to pay taxes. I don't think the vast majority of Americans are adverse to it. They understand that it is part of the price of living in the greatest nation to ever exist. And when they know that they have more say in it, by paying only when they spend, they will find it much more fair. Certainly the option is far better than the Feds confiscating your money up front monthly or bi-weekly. Would there be avoidance? Of course. There is now and always will be. But not to the extent that it will cause any appreciable decline in manufacturing.

Not to mention the myriad other benefits to people and the nation as a whole that come with the system:

- America becomes the world's biggest tax haven in which companies can operate, bringing millions of jobs.

- American made products become more competitive both here and abroad, leading to, again, more jobs.

- 11 TRILLION dollars now sitting in offshore accounts to avoid taxes can come flooding back into our economy.

- Individuals no longer have to spend any time or money filling out forms, compiling receipts and records, paying to have their taxes done, etc.

I could go on, but that's enough for now. The system is not perfect, there is no doubt. There is no perfect way to collect trillions of dollars in taxes. But this system is clearly FAR better than what we have. When you take and honest, educated, informed look at the system, then it is actually a GREAT idea, not a bad one as you suggest.

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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...	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,... [MORE]	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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Reader comment on:
ScareTax, Not FairTax
in response to reader comment: What happens