• November 26, 2014

Replacing income tax with FairTax will put curb on spending

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Posted: Sunday, February 3, 2013 4:30 am

To the Editor:

The FairTax is an idea whose time has come.

Congress — both House and Senate, Republicans and Democrats — has demonstrated time after time, the inability to restrain itself with the public purse.

Congress simply can’t govern effectively as long as the income tax is in place.

Even the “fiscal crises” legislation passed by the current Congress added $74 billion more to the deficit; all to favor special interest groups.

In order to save America, Congress must be denied the instrument of its folly; the income tax.

A solution has been filed away in a drawer somewhere by Congress for more than 10 years. It’s called the FairTax.

It’s neither a Republican nor Democrat idea, but truly an American idea.

If adopted, the FairTax would replace the income tax, repeal the 16th Amendment and annihilate the IRS.

Within one year, America would experience unprecedented economic growth and thousands upon thousands of new jobs would be created.

Contact your congressional representative through his website.

Insist that he do everything possible to bring the FairTax proposal to the floor of the House — and once there, to support it.

Large numbers of citizens must demand the FairTax if we are to have it.

Glen E. Terrell

Arlington

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Welcome to the discussion.

2 comments:

  • YANKEE posted at 6:33 pm on Tue, May 20, 2014.

    YANKEE Posts: 3

    Mr. Terrell is spewing outright lies and mere propaganda. You must read some of his many tweets - outrights lies and fraud.

    The FT does NOT repeal the 16th Amendment - it cannot.

    The FT has NOTHING to do with spending- it purports ONLY to change the way we collect tax revenues.


    He claims that within 1 year FT will produce unprecedented growth and thousands upon thousands of new jobs and for ONLY $19.95 + S/H (and as a special bonus, FT will take 10 lbs off our waistlines in just 3 days).. As W.C. Fields said., "there's a sucker born every day" and FT seeks them all out.

    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.

    The so-called “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 (yes, it is MORE WELFARE).

    Of prime importance, the Prebate is NOT a 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 paid Harvard Prof. Dale Jorgenson who first said prices would come down by 22% “embedded taxes” and go up $23 (30% x $78) for FT. He later changed his mind and explained that 2/3 of that 22% (15%) was the employees’ Income Tax & SS/Medi taxes and they would not surrender their raises to the employer who will thus be unable to pass that on to customers, thus leaving his price decline at 7%. AFFT’s Chief Economist , Karen Walby then said his 7% decline would be 12.5%, but when one merely corrects her incorrect figures, she agrees with Jorgenson (whose 7% decline translates to a 21+% price increase after adding 30% FT). Note that their 7% is the MAXIMUM POTENTIAL price decline and they assume that 100% of that MAXIMUM will be achieved. I suggest to you that is just wrong. Most of that 7% is the employer’s share of SS/Medi taxes which may be paid out in higher wages. Generously assuming that as much as ½ of the 7% MAXIMUM is passed on to customers translates into a 25+% price increase after adding 30% FT.


    The FT produces 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 (notwithstanding that FT’ers fraudulently tell you 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, – more FT (or a NEW Income Tax) we be required to fund these (as noted by other independent authors).

    The 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”.

    We may well wind up with BOTH a NEW Income Tax AND the FT. Congress will repeal the FT’s Sunset Clause and (because the 16th Amendment would likely still be in place) enact a NEW Income Tax which I believe is Congress’ true ultimate objective – i.e., to be able to obtain 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 that are intended to deceive the public.

    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.

     
  • Smithjr38 posted at 12:50 pm on Wed, Feb 6, 2013.

    Smithjr38 Posts: 114

    Sir only a revolution where Obama and the Democrats are send to visit Jimmy Hoffa will stop foolish spending.