November 28, 2009

FairTax will end Socialism by ending taxation of basic needs~Tom Stark

We had quite a discussion going in the Icaucus group "Candidate Vetting Questions" on the FairTax. Here is the last post to which I have not thought of until now. It is like icing on the top of what we already know about free trade and our tax structure:
Tom Stark Comment by Tom Stark 21 minutes ago
...The key to the success of the Fair Tax is that by taxing consumption rather than production, savings and investments are encouraged. The rich that invest in new business or expansion of business are not taxed on the capital invested except as it relates to purchases of new equipment that will not be resold in the course of the business. They are not taxed on it when they earn it or their investments earn it. On the other hand, the worker is not taxed because he is working and the tax base of people paying the tax jumps from 150 million workers to 300 million inhabitants (not counting the 50 million visitors and another few odd million criminals who have to eat and clothe themselves. So 350+ million are now sharing the burden but ONLY on the amount they spend which is totally in their control. Not the government's. If they want to squirrel away their money, they don't pay taxes on it. If they want to be conspicuous spenders, they pay for it. The encouragement is toward saving and investment and prudent consumption. These three would go a long way to making our country more sensible in many ways. The fact that there is a pre-bated allowance to cover the bare necessities for every man, woman, and child in the country makes the playing field level between the "haves' and the "have nots" if you want to call it that. The fact remains that there will be fewer have nots when there is no longer an incentive to stay on the federal/state dole rather than go to work for a living where you get all the pay you earn in your paycheck.

There is no down-side to the Fair Tax. There is no need to put lipstick on an eagle (The Fair Tax). You can put it on a pig (The IRS) but it will never look like an eagle.
Independence Caucus

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