"If we the people allow that to happen, we're no longer dealing with The Fair Tax! We must insist that the Fair Tax be passed, AS WRITTEN!"
Why should we not expect the law to get re-written extensively before passed into law, as all proposed laws inevitably are?
Here is the letter:
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Mike -- "The Only Man in America who is Against the FairTax" must have taken his own advice and did not buy the book, and if he found one on the bus, did not read it. This guy is simply uninformed; proof is below.
"All Sales Taxes are REGRESSIVE. They hurt those most, who have the least money to spend and spend all their income. "
FAIR TAX FACT: All sales taxes ARE regressive by nature, UNLESS THEY HAVE A REBATE, or, in the case of the Fair Tax, a PREBATE (you get it at the beginning of the month). The prebate ensures that all spending up to the poverty level is UNTAXED. So, the poor are untaxed, which means progressivity.
"If you earn $30,000, borrow $10,000 to send Junior to college, you pay tax on $40,000, even though you only made $30,000. If you made $25 million, only spend $4 million, you get $21 million untaxed.
FAIR TAX FACT: Under the Fair Tax, it does not matter what you earn, you are taxed only on what you spend at the retail (NEW) level. Your spending up to the poverty level for your family size ($26,400 for a family of 4) is untaxed at the federal level. Beyond that, you have choice as to if, when, and how much tax you pay, based on your spending habits. If you're a family of 4 and you spend every single dime you have at the retail level, you'll pay the federal tax on every single dime you spend AFTER $26,400 -- not very responsible, buy, hey, its your CHOICE!
"The same people, who screwed up the current graduated income tax with oodles of shelters and 3-martini business lunches, are the same selfish, greedy rich, who are attempting to scam more dollars out of Mr. Average American."
FAIR TAX FACT: The current system IS riddled with "oodels of shelters"! The Fair Tax puts the rest of us on the same level: no more loopholes! Everyone has CHOICE!
"There is a very important, but barely mentioned aspect: REVENUE NEUTRAL - that means that if tax system is changed, US government must get the same amount. If rich pay less, the rest of us must pay more. There is absolutely NO WAY AROUND THAT MATHEMATICAL FACT. All the government handout crap is merely camouflage for this fact. There is NO System of Taxation where everybody wins."
FAIR TAX FACT: Yes, revenue neutral means the gov't will get the same amount of money for all the fraud, waste, and abuse it is currently involved in. The Fair Tax is a revenue-generating bill, NOT a spending bill. Hate to be the one to break this to everyone, but, we the people let the fraud, waste, and abuse get to this point, and we the people will have to control government spending. The good news is, that, under the Fair Tax, it will be easier for us to do so, since the politicians will no longer be able to play the class warfare game as they do now with the income tax.
"Also, the tax rate (flat, which means Regressive) will have to be increased to 30%, 40%, or 50% to insure the government gets theirs (Revenue Neutrality). Don't forget State sales tax, which can be 8.75%. Add that on. Finally, if Bush wants to start another war in Iran, for instance, he can also collect Income Tax on top of the National Sales Tax. The Income Tax is dormant, not dead."
FAIR TAX FACT: The assumption with this argument is that the politicians will destroy the Fair Tax bill by making all kinds of purchases exempt ("health care is too important to make everyone have to pay tax on it"). Once exemptions are made, the rate must be increased. If we the people allow that to happen, we're no longer dealing with The Fair Tax! We must insist that the Fair Tax be passed, AS WRITTEN!
"Elderly, retired people will pay tax on the same money (Double Dipping). Their nest egg was taxed coming in; it will be taxed again when they spend it)."
FAIR TAX FACT: Right now, the "elderly", and everyone else, pays tax on the same money several times over! Under The Fair Tax, theoretically, one can totally opt out of the federal tax system with regards to the Fair Tax, by the way they CHOOSE to spend their money. As for those, like me, who have a ROTH IRA, and paid taxes going in, fine, I'll take my lumps and pay tax when I CHOOSE to spend that money at the RETAIL level.
"Those, who promote this scheme are either rich or incorrigibly gullible."
FAIR TAX FACT: Those who promte The Fair Tax are INFORMED (and not a politician or a tax lobbyist)!
