"Many economists believe that a consumption tax would be best from the perspective of promoting economic growth - particularly if one were designing a system from scratch - because a consumption tax is likely to favor saving and capital formation," Mr. Greenspan said.
That should provide a boost to the Fair Tax bill introduced and championed by Georgia Congressman John Linder, a member of the House Ways and Means Committee. Congressman Linder (R-GA), reintroduced his personal consumption tax proposal, H.R. 25, also known as the “FairTax.” on the first day of the 109th Congress.
There are several Republican lawmakers who recognize that tax reform and social security reform need to be considered together. A total tax overhaul will take enormous political effort, but Linder sees good momentum in Congress. It’s time to get behind this commonsensical tax bill that lives up to its name—“fair tax.”
--James Jewell
If the fairtax would work -- fine. But its largely a fallacy.
YanıtlaSilFor one thing, it depends on the absurd notion that the federal government can raise revenue by taxing itself.
Ask Mr Greenspan if that trick is possible.
Neal Boortz wrote "The federal government itself will become a major taxpayer" (Page 148 Fair Tax Book).
Nonsense - Thats like me paying myself 500 dollars for cutting my own grass.
Fairtax planned on getting 300-500 billion -- by taxing itself! So when that doesn't materialize, the rate would have to be 34-38%.
Fairtax plans on taxing cancer patients on their surgery, on their chemo, on their hospital bill. One cancer patient could be taxed 100K.
Fairtax plans on taxing ALL health care -- a 2 trillion dollar market - 23%. That means people getting health care will be taxed a combined 460 billion.
That means nursing home paitents could be taxed 40K a year -for a sales tax on their nursing home bill!
It means the parents of a child with leukemia could get a "sales tax" bill of 70K.
Its utter nonsense. These patients will scream bloody murder when they find out that fair tax shifted much of the tax burden onto them!
And Congress won't make the elderly and sick pay these huge sales taxes. The 460 billion dollars Fairtax depended on -- just won't be there. Just like the 300-500 billion they pretended to tax government won't be there either.
Fairtax plans on taxing people who rent -- rent ANYTHING - the "sales" tax. There are 42 million people who rent their housing in the USA -- and I bet not ten know that fairtax is trying very hard to raise their rent expense 30-40%.
And these renters will be pissed.
Fairtax also taxes insurance premiums. Few americans know that.
Imagine you wake up one day, a week after Fairtax passes, and your rent went up 500 dollars, your utilities went up 300 dollars, your back operation went up 20,000 dollars.
You thought prices were going DOWN. But you just had 21,000 dollars extra in taxes. And you dont even MAKE 21K .
DO you think you might be a tad pissed off?
THere are going to be a lot of pissed off people if this passes.
I can't wait!
I hope the fairtax is passed, I would LOVE to see the uproar that would follow!