It is Called FairTax, Not FakeTax. FakeTax doesn't make any sence. FairTax is a Proper Noun, as in a Name. That would be the Same thing as me calling you Stupidman4ever. That wouldn't be nice now would it?
Your silly metaphors and backhanded comments aside, you still haven't addressed the fact that the Faketax's 23% rate is ONLY inclusive and avoids real world problem. It is making an assumption that corporations amid removal of hidden taxes will do the right thing. It ASSUMES a LOT. For instance it assumes there will be no tax evasion. When tax evasion was considered the PRESIDENT'S Advisory panel stated that the inclusive rate would be 25% (NOT 23) and the exclusive rate would be 34%.
Prices would fall be cause of something called Competitition. It would only take hours or Days. Have you ever seen 2 Gas Stations across the Street from eachother? One is could only be $.01 difference in Price, where does everyone go? The one with the Cheaper Gas. Competetion works, and that would force everyone to lower their prices. There are plenty of real World examples where prices are just a few pennies cheaper and in order to maintain market share, Manufacturers would have to lower prices. It's not Magic, it's Economics 101 my friend.
Brookings institute found that exclusive rate would be 53%, when real world mathematics are used.
Below is a report from Laurence Kotlikoff, Ph.D. of Boston University and the Beacon Hill Institute saying that a 23% Consumption Tax would work.
http://www.fairtax.org/PDF/Tax Notes article on FT rate.pdf
Also this crap about you get to keep 100% of your paycheck...it's a LIE!
Please explain how, if you do not have ANY taxes removed from your paycheck, that you wouldn't receive 100% of it? Go ask the CFO of your company, if you do, he'll tell you that their tax liability on their Payroll taxes are taken into account in their figures with regard to Taxes paid at the end of the year. THEY ALREADY TAKE PAYROLL TAXES INTO ACCOUNT. That and YOUR INCOME TAXES IS MONEY YOU EARN! Those are
your Income taxes, not the employers. If they take out those taxes, you received 100% of your paycheck. Now, that does mean only FEDERAL TAXES are REMOVED. State taxes would still be taken out, but that is a State issue, not a Federal Issue.
http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/index.htm
And when pressed about the issue Neal Boortz (the writer of The
"Fair"Tax Book) and John Linder (a Republican Rep. who is a strong proponent of Faketax) avoid the topic saying only that they didn't make intentional over promises. Hm, lying about a tax plan by conveniently avoiding real world scenarios and promising a 23% rate on only new goods (but avoiding the fact that Doctor bills, interest rate, mortgages, buying a new home, rent, legal fees and GAS, which is high enough already, are NOW taxable under their devilish plan and ARE NOT part of the "basic necessities" prebate check) is OVER PROMISING and is actually a FLATOUT LIE that will only hurt the middle class and the poor who have to spend MOST of what they earn to live.
You are already paying taxes when you go to the Doctor, or paying your Mortgage, or buying a new home. When a have a business, you have Tax Liability, those taxes are passed onto the End Consumer. That is you. The Hospital payes taxes on the products they buy to use on you! That means they have to pass that down to you. They include those taxes in their margins. The same thing for EVERY SINGLE BUSINESS ENTITY in the United State. It is Call Corporate Taxes. Those Taxes are passed onto the Margins of every single level of Manufacturer. NO CORPORATION pays taxes, they collect them and pass them on to the Government. YOU as a CONSUMER PAYS ALL TAXES.
This tax plan is supported by the wealthy and powerful because it doesn't affect them. The hidden burden falls on the poor and middle class.
And yet some how 23% is going to work in our market.
I guess you don't understand that the Poor would be untaxed for their purchases up to the Poverty level. I guess you don't understand that with 100% of their Paycheck, and the Prebate, they would have more disposible income to afford Housing, and that the Education System would be not taxed, which would drop Tution by roughly 30% when compared to todays cost, that Education would be more affordable, which would help the Poor and Middle Class be more Marketable in the Work Place, which means that Wages would go up. Which, if their Wages are up, they are in a better place than under our current tax code which taxes them before they ever see their paycheck. That means, they would have essentially a 10-20% increase in their pay, which they can DECIDE when they pay their taxes, but the Prebate would offset the Tax Component in the Price of Food and Necessities. So, if they can only pay for Food, and and College Education, that means they wouldn't be paying ANY TAXES AT ALL. But, if they purchase anything AFTER the Poverty Level, then they would be paying taxes. Is that TOO difficult for you to understand?
Moreover,
You can read his full report here.
Faketax is NOT the solution, it addresses some problems legitimately, but ultimately is based on assumptions that would test the very foundations of this nation. 23% RST would cripple the government, and anyone who disagrees is being lead by blind faith! It really burdens a question if the proponents of Faketax use the same "logic" and "science" that spurred the creationism.
The FairTax is Revenue Neutral, that means that Revenue would be exactly the Same as it is today. But, it is collected differently. And, with the increase in the Economy, the Government would actually collect MORE revenue than today. What does a Government do when they want to increase the Job-Rate? Cut Corporate Taxes. That lowers prices at the Market level, which puts more money into the Corporation, to expand Jobs. (Google: Irish Miracle, or Celtic Tiger for Real World Examples) What would happen if the Corporate Tax Rate was ZERO?
It isn't that difficult to understand.
Let me ask you this, what do you have to lose if we adopt the FairTax?
No more Individual Audits from the IRS. No more Filing your W-2's. No More Having to worry about submitting any paper work by April 15th. No More Taxes on your Savings. When it's payday, you know that you will get what you are promised, not 30% lower.