Thursday, February 18, 2010
The FairTax has far more pros than cons. I have trouble dredging up even one con.
To date, all the objections to the FairTax I have heard are from people who haven't read up on it, or who have an axe to grind. Mrs. P once expressed a concern relative to her hubby's business, as I recall, and many people wax horrified when they contemplate that "I won't be able to deduct interest on my mortgage!!" We have all been schooled in the importance of taking advantage of ALL the legal outs so lovingly provided by our benevolent Uncle Sam. Thus, we quail when our favorite loophole is unaddressed or eliminated in discussion of the FairTax. I would have to say that ALL objections to the FairTax stem from a single misapprehension of the facts; not recognizing one salient point:
Under the FairTax, there will be NO I.R.S. Period.
The most important part of the FairTax is the repeal of the Sixteenth Amendment. There will be NO withholding, No FICA, no need for deductions. No I.R.S. No government bullies holding a gun to your head, robbing you of your pay to hand to some bureaucrat to disburse.
You will take home your entire paycheck. Your first check after the enactment of the FairTax will be like getting a raise.
You won't need deductions, because the government won't be taking your money.
"But Mr. Aardvark, sir, isn't the FairTax still a tax?"
Yes. Yes it is. But it is truly a voluntary tax.The FairTax is a national retail sales tax, a tax you pay when you purchase something at retail. If you buy a new car, 23% of the cost of that car is what you pay as FairTax. (NOT 23% added to the price of the car. It is a part of the sticker. The lying liars in Washington like to accuse the FairTax proponents of wanting to add 23% tax ON TOP OF all the current taxes. This is NOT TRUE.
Every can of beans, DVD, or automobile that you buy already has 22% of its price as tax. Each time a raw material is changed, at each level of manufacture, a tax is levied by the government, so that by the time it hits the shelf or the showroom, 22% of its price consists of tax. At the abolition of the I.R.S., all of those taxes will vanish in a puff of justice. The FairTax will then be made a part of the price of your beans. Your $1 can of beans will remain your $1 can of beans (it may go up a penny, but with the business cost of manufacturers' compliance with I.R.S. regs vanishing, their cost of doing business decreases dramatically, and they may choose to eat the penny. I would.)
Considering that your take-home pay has increased by a third or better, you could afford a penny on the dollar.
You will have no tax forms to fill out, no accountants or tax preparers to hire, no headaches. You pay your tax when you buy your beans, your steak, your new car.
Golly, Madge, let's go to Target and pay our tax!
You even get a check or credit at the first of each month, a prebate check, to cover whatever tax would be paid up to the poverty line, meaning that the poor will pay no tax on the necessities of life, and neither will you.
If you buy a used car, no national retail sales tax. Buy a used TV, no FairTax. Only new, retail sales will have the FairTax.
All this, and no I.R.S.
But what about the Flat Tax?
You will still have the I.R.S. You will still have to file. The Givemint will still be in your bidness.
Go HERE to read the basics of the FairTax, including answers to the most popular attacks used against it.
The FairTax will truly make April 15th just a pretty Spring day.