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Home / Articles / News / Letters /  Replace Income Tax With Fair Tax
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Replace Income Tax With Fair Tax

By City Weekly Readers
Posted // November 21,2012 -

I have been an appliance repairman for 40 years. My natural inclination is to fix things. As I look at the state of national affairs today, nothing seems to be working right. One hardly knows where to begin the repairs. May I suggest tax reform?

The income tax discourages investment and productivity. It penalizes exporters, who must add the cost of taxes into the price of everything they export. People with high incomes are leaving the United States in droves to avoid income taxes. Working people have up to 25 percent of their income confiscated before they even get their paychecks. The IRS intrudes into our private affairs. We waste hundreds of billions of dollars and millions of hours every year in compliance costs. People defraud the system for undeserved refunds. Hundreds of billions in revenue from the underground economy and tax cheating is left on the table.

The Fair Tax changes everything. Because it is a tax on consumption, it sidesteps that entire list of evils associated with the income tax. The Fair Tax, however, goes beyond mere reform. Sometimes when I am called upon to repair an appliance, the cost exceeds the value of the unit in question. That’s what’s happening with the income tax today. The income tax cannot be repaired. It must be replaced. Of all the plans being discussed on Capitol Hill, only the Fair Tax can bring the kind of fundamental and comprehensive change that will allow for a permanent fix.

DAVID BOONE
Houston, Minn.

 
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REPLY TO THIS COMMENT
Posted // December 3,2012 at 12:39

Mikee. HR25 is not just two years old. It was first introduced in in July 1999 and has been reintroduced in each congress since then. It has 70 cosponsors. Its chances of passage are slim because 70% of lobbyist in Washington are tax lobbyists and they and all congressmen would lose the albility to rewrite the income tax laws to help businesses and contributors. It's all about money. Lobbyist would all lose their jobs and congressmen would lose contributions and maybe their elections. So you are right, the Fairtax bill has an uphill battle, not because it is not a good bill but because it is good. Good  for citizens, good for businesses, and good for the country, and is fair and compleatly untaxes the poor. The rich, and businesses can, and do, move their money out of the country because of the income tax and regulations. The Fairtax recovers this money when it is spent. See the research. You inply that Democrats would not be for the Fairtax and I agree with you and I would also add most Republicans. Why? As stated above the Fairtax removes the albility to manipulate the income tax in favor of special interests such as voting blocs and businesses in order to obtain contributions and votes. You mentioned accumalated wealth, the rich don,t pay any tax on accumalated wealth until they die, and most manage to give it away without being taxed. The Fairtax would tax it as they or their heirs spend it. Researchers for the military invented the internet not because they were given a grant to invent it, but because they, the researchers, wanted a secure way to talk to other researchers. Private individuals then saw the potential and built it into what is is today. The government got out of the way and did not kill it with taxes and regulations. The original invention allowed the internet to happen, it wasn't planed. You spoke about the government needing taxes, no one here including the author or I have said anything about cutting taxes. The Fairtax is designed to be revenue neutral, that is bring in the same revenue as the currant income tax now collects. The interstate highway system was built as a military highway as was the older US Highway system. I could add to that the trancontinental Rail  system and the Panama canal, as both were built by the goverment for the ability to move troops to the western shore. This is one type of spending is one of the few that arein fact  constitutional. I did not see where the Author proposed banning anything, and welfare was not mentioned by him at all and how would the Fairtax which wiil bring in the same revenue as now cause people to starve? It appears to me that you enjoy setting up strawmen so you can knock them down. So, just to be clear, neither the Author, nor I propose banning anything, nor do we propose cutting any government program. Do you understand this now. What we are proposing is The Fairtax. Please read HR 25 and the reserch on Fairtax. orghttp://www. fairtax. org/site/DocServer/TheFairTaxReducesComplexityComplianceCostsAndNoncomplian. pdf?docID=601

 

 

REPLY TO THIS COMMENT
Posted // November 22,2012 at 08:11

This letter is a great example of an opinion that is 100% fact-free.

"The income tax discourages investment and productivity. "  That must be why America has one of the lowest investment levels, and the lowest productivity level, right?  Neither of those are true, America is a leader in both.

 

"It penalizes exporters, who must add the cost of taxes into the price of everything they export. "  Uh. . so?  Every manufacturer must add the cost of tax into the price of everything they manufacture.  Derp.

 

"People with high incomes are leaving the United States in droves to avoid income taxes"  Unless they're moving to a third world hellhole, their taxes will be higher.  Every industrialized nation has higher taxes than America.

 

"Working people have up to 25 percent of their income confiscated before they even get their paychecks. "  They also have roads to drive on to and from work, police and fire departments to make sure they're protected while at work or home, they also have government watchdogs making sure their rights are protected while they're at work.  And a 25% tax rate for having all of those benefits is pretty low, compared to the rest of the industrialized world.

 

"The IRS intrudes into our private affairs. "  I've never cheated on my taxes, and not-so-coincidentally, I've NEVER talked to the IRS.  Funny how that works, isn't it, Dave?

 

"We waste hundreds of billions of dollars and millions of hours every year in compliance costs. "  If you give rich people a huge tax break with a "fair" tax, those wasted hours and dollars spent on compliance turn into wasted hours and dollars spent on finding food.  Small trade-off.

 

"People defraud the system for undeserved refunds"  Neat.  People murder each other every day, does that mean we need to ban living?

 

"Hundreds of billions in revenue from the underground economy and tax cheating is left on the table. "  And that wouldn't change with a fair tax, if I work under the table under our current system, why would I stop working under the table under a new system?

 

Thanks for sharing your fact-free, uneducated, uninformed opinions, David, but next time, write your stupid letters to a paper in Texas.

 

 

Posted // November 24,2012 at 22:08 - Bladen, HR 25 is nearly two years old, it died in committee, it was a Tea Party wet dream, but it's dead now, or did you miss the '12 election results? FYI, I didn't vote for Obama or Romney, just getting that out of the way because I'm sure you're thinking about it. ;)

 

Posted // November 24,2012 at 21:55 - Bladen, foreign companies are not setting up shop in America and selling their wares. American citizens are taking advantage of the lower tax imports and selling them to other Americans. That is an American business problem, not a tax problem. Want that to change? Change the way Americans do business, end the dog eat dog, crony capitalism and get the playing field back to fair game. Your FAIRTAX is simply a way of giving the rich and even greater tax break while raising the rate at which the poor pay, because they easily consume more than they would pay in tax on their already accumulated wealth. Taxes pay for the common good, without taxes the government, via the military and universities, wouldn't have invested and created the very method of communication we're talking on right now. Tax dollars were used to create the foundation of the internet, and it wasn't until that system went live that private enterprise stepped in and figured out how to profit from it. Look at where we're at now, trillions of dollars flowing solely because of the internet's existence, which wouldn't have been possible, or would have been extremely delayed, because it wasn't profitable to provide the military and scientists with a way to communicate quickly. Ever driven on the interstate system? You know, the reason American companies are able to quickly ship things cheaply by truck instead of having to depend upon a slow, expensive railroad. Do you think those American businesses would have created the freeway system on their own? If they would have, why didn't they? Because it's not profitable, so the government does it using tax dollars, and business is able to cut their costs and increase profits because of it. America has one of the highest corporate tax rates in the world, and American corporations pay the least tax on the highest profits in the world. Strange how that works, isn't it? If paying inhouse accountants and lawyers to lower a tax bill weren't profitable, corporations wouldn't do it. Regulations and taxes certainly haven't gotten in the way of record profits. Really strange, isn't it? It's almost as if you accuse me out of having an ignorance of the facts as a projection. Oh, and that "American citizen" Facebook CEO? He was an immigrant from Brazil. Obviously he enjoys hopping countries and renouncing citizenships, America won't miss him. Guess the analogy went over your head, the author made the claim that we should ban welfare because people abuse it. People abuse guns and murder each other, do we ban guns? People abuse cars and kill each other, do we ban cars? No, we don't ban a system just because a small percentage abuse it, because that's just plain stupid. We punish the offender and go on with our lives. You don't understand how getting rid of welfare to give corporations an even lower tax bill would leave millions of Americans starving? Really? Come on, you've only pretending to be dumb, right? I hope. . ?

 

Posted // November 23,2012 at 14:46 - Mikee You obviously have not read HR 25 the Fairtax bill. I came to this conclusion because your comments indicated an ignorance of the facts referred to in the blog. For example, Goods do come into the United States without included taxes from the home country. Cars from Germany have all taxes rebated to the manufacturer before the car is shipped to the US and is therefore sold in America free of manufacturing taxes, while the American car is shipped with all taxes included and then is slapped with an import tax when imported to the foreign country. Under the Fairtax the American car would be shipped free of taxes, while the imported car would be taxed 23% inclusive when sold. It is true that there are people leaving the US because of taxes. I know of at least two billionaires who have moved to Hong Kong. One was an original owner of Facebook. Under the Fairtax workers would not have any federal taxes deducted from their paychecks and government services would till exist. The Fairtax would have no impact on repair of roads, police, firemen and so on. these are usually provided by local taxes. The American Corporate tax of 35% is now the highest in the world, and billions are spent in avoiding the tax. GE spent $4 million alone for tax lobbyists in addition to their expenses for in house tax lawyers and accountants. For this expense they avoided $5 billion in taxes. I am sorry Mikee but the IRS does intrude on your life in that you have to file income taxes which requires you to keep records and report your income to it or go to jail. The IRS is now hiring 2500 additional agents to enforce the taxes in Obama care. As for taxing rich people, if you took all the income from the top 2% of income earners, it would fund the government for about 5 days, and you would only get once because the they would quit working. What does the fairtax have to do with people finding food? How does the Fairtax ban living?

 

 
 
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