September 03, 2014
Wednesday PM

Recently, SitNews published a long letter from AFFT Vice President, Phillip L. Hinson. While he may be well meaning and acting in good faith, that does not at all assure that in his analyses and conclusions are wise – they are very UNwise.

Mr. Hinson dwells on at length about the evils of the current tax system. Yes, we can all agree that the US tax system (among other problems) is hurting our economic growth and that we alone tax the remission of foreign earnings - but AFFT’s propaganda glosses over the right answer. That is, we don’t need the disastrous FairTax to fix those problems. Not mere tinkering, but a dramatic simplification of the Income Tax (including the elimination of the tax on remitting foreign earnings) with a big reduction in the tax rate is the more acceptable evolutionary way to fix the problem.

The FairTax starts with more redistribution of wealth – the poor would pay ZERO tax towards the general burden, ZERO for their personal SS/Medi benefits, AND receive a big tax welfare check. It results in a 40-70% sales tax that will destroy our economy, PLUS another 15% HIDDEN TAXES, mostly by the fact that the Fed & S/L govts must pay FairTax and get that money back from us. It is a Trojan Horse for a NEW Income Tax and we would be saddled with BOTH – i.e., Congress’ true goal (Congress would surely repeal FairTax’s laughable “Sunset Clause” and the 16th Amendment will Not likely be repealed anytime soon).

I take issue with a specific comment Mr. Hinson made. He claimed that Ways & Means Chairman David Camp’s proposal (which I have not studied yet) did not “score” as improving the economy. Congressional (JCT) “scoring” does not even try to GUESS (not predict) the effect of a tax proposal on the economy - it attempts ONLY to estimate the amount of tax revenue that a tax bill will generate. It is disingenuous of AFFT to attempt to fool people into thinking that Congress or any economist can predict economic results.

Stephen C. Eldridge
Website: sceldridge.wix.com/sceldridge
Cosby, TN

Received August 28, 2014 - Published September 03, 2014

Related Viewpoint:

FairTax Fanatacism By Philip L. Hinson

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