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Beware of the “Fair Tax” Scam Solution While they Call for the End to the IRS.

To me the fraud of the Fair Tax does not address one big issue. That is ending the reign of the Federal Reserve Bank. It does not eliminate the ” Death Tax” were the US Government writes itself as a beneficiary of an estate without the consent of person writing the will by taxing the estate. We no longer have no taxation without representation. Today we live in a world of taxation out of hesitation. The fair tax is just a Trojan horse of switching from one form of economic slavery for another.

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I find the FairTax to be a

I find the FairTax to be a step in the right direction. The income tax and the several other taxes would be replaced by the national sales tax (INCLUDING, by the way, the Estate/Death tax - not sure where this blogger got that information). The sales tax would make it painfully obvious how much money you're forking over to the Federal government, compared to the national income tax where it's basically hidden in the background.

Opponents to the "left" generally express outrage at how the FairTax is a 30% tax. "It's outrageous, 30%!?!?!" Well, we're already paying the 30%! It's a revenue-neutral system. Shouldn't we all be outraged already? It would be an eye-opener for many.

Fair Tax is NOT a Fraud

I have been involved with various movements to eliminate the income tax since the 1980's. The people involved have been well meaning. The movements have been funded by the same type of private money that funded the Ron Paul campaigns.

Fair Tax can no longer eliminate the IRS due to ObamaCare. But it can help eliminate ObamaCare by stressing that the IRS exists for the purpose of supporting two failed programs - the income tax and Obamacare.

Gene Louis
Supporting a Needed Tool for Government Feedback:
A Citizen-Operated Legal System.

While I agree it is not the holy grail, the end game of end game

it is a step in the right direction. I know, I know - many on here don't believe in steps back- they have a fantasy of waking up one day after an election and having all that is good in the world restored - but I am a realist.

Know why my wife is paying more attention these days(besides my obsessive rants and the DP that is)? I "went out on my own" - started my own company last year. With that came a lot of things -one of them being quarterly estimated taxes.
Now despite having paid MUCH more quarterly in federal taxes when I was on salary(I got paid a lot more) - the fact that she now must write a big check every three months(actually two - one to the fed, one to CT) - it INFURIATES her. See, it's phycilogical. Before -she never felt it was my money - clearly it was the governments since they just took it right? Now when we get checks in the mail - we move 40% of that check over to a savings account labled Tax Accrual. We know it is for taxes, we know we are not keeping it - but in her mind it is OUR money they are taking now - not THEIR money. And she gets angry over it!!!

If we took away w2's and paid everyone with 1099's - the country would burn the IRS down withing 6 months. That second check really started to irritate my wife, as I imagine it would MANY people.

The fair tax may not be fair - and it may not make much difference since again - it is being pecked to death by ants - but it sure is easier to understand than the current system.

Not to mention - it would save me countless hours of aggrivation keeping track of receipts, and expenses and mileage and on and on.

fireant's picture

Fair Tax is just re-shuffling the deck.

While I agree it is attractive due to eliminating the IRS meddling in our personal lives, it does nothing to restore a Constitutional Republic, and maintains a bloated FedGov overlord.
Look at it logically. The only way to implement such a tax and ensure we don't end up with a national sales tax AND and income tax, is to repeal the 16th (assuming it was legitimate in the first place, which arguably it was not). That would leave us with the original intent, which clearly forbade any direct tax upon the people by the FedGov.
We would solve most of our complaints against the FedGov by simply following the Constitution, and tax the States based upon the same apportionment as for determining the number of Representatives. Restore State Representation via repeal of the 17th, and the FedGov would quickly be put back in it's Constitutional bounds.

Undo what Wilson did

Throwing Out The Baby With The Bath Water

Fair Tax is the ONLY popular legislation (63 Co-Sponsors) that would require the elimination of the 16th Amendment. You can't have everything that you want in one shot. I've watched this all or nothing thinking get us further and further away from the Constitutional Republic ideal each year for the past several decades.

Gene Louis
Supporting a Needed Tool for Government Feedback:
A Citizen-Operated Legal System.

Fairtax is what first brought

Fairtax is what first brought me into politic. I was a big supporter of Mike Huckabee in 2008 because of his support of Fairtax. This Ron Paul guy was crazy talking about no taxes at all. I had automatic monthly payments in support of Fairtax. I was talking about it and convincing a lot of my friends and colleagues. That was a long time ago, and today I would still be in favor of it if it came up as an option, as it is supposed to replace the income tax entirely. A consumption tax would be far better than an income tax. However, today I no longer send monthly payments to Fairtax and I tend to agree with the fact that the federal government needs to be a lot smaller than what it is today. I believe Fairtax would help in making the government smaller over time, basically because everyone would be paying their share of the burden and it would therefore be in everyone's interest to reduce the size of their tax burden and therefore the size of government. But I don't think it would reduce the size of the government fast enough. It would be a fairer tax system than what we have today, but it would not get rid of the Federal Reserve and the fiat system fast enough, if at all. I don't think Fairtax is a scam, I believe the original founders of Fairtax had honest objectives and good goals. But today as a strong Ron Paul supporter I believe we need to do more to reduce the federal government and cut their income source deeper that what Fairtax would accomplish. However,I think and collapse of the dollar and the U.S treasury will come much sooner than any implementation of the Fairtax. I wish them luck with their endeavors but nowadays I think it will never happen.

It is better to look dumb and not be, than to look smart and not be.

Id take a sales tax over an

Id take a sales tax over an income tax anyday

Mises article written by Mr. Vance from 2005

about fair tax. He doesn't like it and neither do I. The proposal is complicated, would require a constitutional amendment, and does nothing to reduce government spending.


I actually put the requirement of the amendment on the plus side

It means the Constitution itself would be "popular". Hell, some teachers may actually brings a copy in for the kids to see for show and tell.

Maybe a few people, seeing how cool the Constitution is, would actually read it.

Then, I think some would actually reread - because they would be utterly amazed at how simple it is. Then they would be amazed at the shit in their that THEY are entitled too(and I use the word "entitled" quite on purpose).

Could you imagine - people putting up some obscure article of the Constitution on Facebook because it would get "likes".

No tax is only fair tax

No taxes worked fine for 120 years.

Congress spends 8% more a year and has not paid down the debt for 120 years.

Let's go with what worked. We can put the executive branch on a 20 year furlow

Free includes debt-free!

it appears...

...to be the most efficient way to collect taxes, but it doesn't address the root problems of government overreach and excessive spending/taxation. Not to mention the Federal Reserve and the problem with fiat currency allowing never-ending and unchecked government expenditures.

So, a few good points that will hook the short-sighted or faux conservative crew, or the "it's better than what we have" crew, but I'm not too impressed with it.

I'd much rather just see an end to property taxes as a small step toward freedom of being able to own a home/land instead of RENTING it from the government which is what what property taxes is...duh!!!! Merika...freedom...paleez

I mostly agree

The so-called "Fair Tax" is anything but. The IRS will just go from auditing income to auditing spending. The true solution is to form a barrier in taxation between the individual citizen and FEDGOV. http://www.dailypaul.com/285674/the-localist-solution-for-ir...

Localism is for people who can still sleep at night even though somebody they don't know in a city they have never been is doing things differently. ("Localism, A Philosophy of Government" on Amazon for Kindle or Barnes and Noble ebook websites)

I have to disagree with you

Although the Fair tax is not a solution to the Federal Reserve or the over-sized federal government, it does solve one problem... transparency in taxation.

Ask anyone with a paycheck how much tax they pay and almost everyone will get it wrong. They even think that their tax refund is a great thing and love when it is bigger than they thought. That is a huge problem when you want to inform people about the evils of taxation.

The fair tax would spread the burden of taxation upon more people and make it more visible to them. It would also simplify the enormous burden and wastefulness of income tax compliance. I think those two things are extremely beneficial.

The fair tax is not perfection and it is not the end goal. The end goal would be no corporate tax and no personal tax, and for many, no government at all. But if we are at least moving in the direction of tax transparency and ending the confiscation of income then we are accomplishing something good.

Ron Paul himself, said he would vote for the fair tax if it came up for vote even though he was not an advocate of it. This tells me he sees it as I do, a step in the direction of tax transparency.

I know I'll be blasted for this but incrementalism is far more palatable and far more effective at achieving your desired goals than an all-or-nothing strategy is. Just ask the progressive socialists.

I Agree it is a Fake Out

The corporations have been shunting the income tax onto individuals who are actually exempt but don't know that in order to get the people to repeal the income tax. The corps want to have the people pay the "fair tax" to get them off the hook and then the corps would grow uncontrollably.

You are your own worst enemy if you are ignorant and can be manipulated. The IRS would work for the American People and only collect taxes from the corporations if the people only learned how to use the IRS. It is not the people's enemy, it is our tax collector which is there to collect from the corporations and return the proceeds to the people. If you are using the blue and black IRS forms and taking deductions the IRS assumes you are a corporation that is taxable. Who's fault is that?
Why not use the Red Forms reserved for the people? Then the IRS collects the tax from the corporations and returns it to you. Much better!

The Oracle

Corporations are ALWAYS off

Corporations are ALWAYS off the hook for taxes. Taxes are part of their costs, costs which are passed onto consumers in order to generate profits. No corporation in the world pays taxes, those taxes are included in the price the consumer pays.

Who Pays The Tax?

That was one of the studies we did in business school. Sometimes the corporation eats the tax and cannot pass it on to consumers, sometimes they can stick it to the consumer. Eventually a tax on one corporation or sector that cannot pass the tax on to consumers will result in re-allocation of capital to corporations that can pass off the tax. Simple economics all other things being equal. So in the short run a tax can be levied against a corporation which in some situations the corporation cannot pass on to consumers. This effectively liquidates (destroys) the corporation.

Eventually all taxes raise the cost of capital and thus raise the cost of everything in society.
This assumes the tax goes to waste by the government.
If the government did not waste the tax revenue and spent it all on properly allocated public infrastructure then productivity would be increased and taxes wouldn't cause increased prices for everyone.

To waste and destroy is the purpose of taxation (under this govt.) so as to keep the wealth out of the people's hands.
Inflation is just double taxation. They tax you when they give you a newly printed note. It acts as a warrant.
The Department of Treasury "checks" even say on them "this is a warrant". Their government has been operating in Bankruptcy since June 5 1933. They borrow from the American People by issuing these "warrant" checks.

The Oracle