FairTax Poison By Stephen C. Eldridge October 11, 2013
Walker rambles incoherently but I will try to address some of his points. He drones on about needing to make govts pay FT to be fair to the private sector. However, govt’s would remit FT but they don’t PAY it – we do. Thus, the FT’s superficial analysis falls apart under analysis. Also, a govt which engages in a “commercial activity” has to charge FT just like any private business. FT’ers talk around the truth. Walker talks as if the 16th Amendment is repealed by the FT – it is NOT and likely will not be repealed. The FT’s laughable “Sunset Clause” which supposedly terrorizes Congress into repealing the 16th Amendment, will itself be repealed and we will wind up with BOTH the FT AND a NEW Income Tax. Walker rambles on suggesting the (old) FT lie that Ft replaces currently “embedded taxes” and prices will stay the same – even the AFFT now admits that prices will rise (at least) 15% - I say closer to 25-30%. Walker suggests that FT will collect the same taxes as today and might even be LOWERED. FT’s outrageous economic “assumptions” of ZERO FT evasion and Zero voluntary spending reduction in reaction to the 40-70% sales tax rate will cause the F rate to RISE (not fall). Also, evasion and voluntary spending reductions will cause a HUGE shortfall in FT collection. Terrell’s Letter is a Rah-Rah, crowd-rousing rant. I will pick out the only 2 substantive points he addresses (fraudulently). He suggests that prices will come DOWN under FT – see above where I note that even AFFT now admits to at least a 15% price increase – I say 25-30%. He also suggests the same old FT cry that “criminals/illegals/everyone would pay tax”. What he slides by is that the poor pay NO tax (they get MORE WELFARE & FREE SS/Medicare), illegals send most of their money home in remittances and we would have 320MM new tax criminals trying to avoid paying FT at every possible opportunity. Reply to David Shipp: I don’t believe that Mark Curran, nor any other FairTax (“FT”) critic, was trying to suggest that the FT is added on top of the currently existing taxes. While that was clearly the FT’s initial deception, the AFFT later had to admit that was not true, after the economist who wrote that initial paper making that original claim, recanted. Now AFFT admits to a net 15% price INCREASE and that is their reluctant admission under pressure and so it is likely they believe prices will go higher – I say 25-30%. These FT marketers keep spewing out volumes of mere verbiage that is deliberately confusing, irrational superficial and deceptive. It’s all sales HYPE. Stephen C. Eldridge About: "Stephen C. Eldridge is a retired tax lawyer/CPA, author and lecturer" Received October 08, 2013 - Published October 11, 2013 Related Viewpoint:
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