This is in response to a letter to the editor by John P. Ryan, “Fair Tax treats retirees differently,” published July 8.
FAIRtax (FT) is a progressive scam. Instead we need a 10% tithe tax.
The 30% (not 23%) FT is applied to virtually every dollar you spend on goods and services.
FT proudly advertises that it is more progressive.
FT is marketed deceptively.
FT’s prebate is not a real refund of FT paid. It’s a $600 billion new entitlement. The prebate purports to merely repay the poor for any FT they pay (as if we all agree with that), but it would actually pay them far more by assuming the poor spend more than the underlying HHS Poverty Guidelines and that they will pay FT on all of their purchases (they won’t) – see:
First, lobbyists lied that we get a big raise and FT prices would be the same as today’s — that just cannot be true. Lobbyist now appear to admit that prices rise substantially, perhaps the full 30%.
FT produces a combined fed+S/L 30-45% initial sales tax sparking a taxpayer revolt destroying our retail sales-sensitive economy.
FT’s 30% rate is closer to 50% (it hides another approximate 20%).
It is a myth that “IRS is abolished.” FT’s new IRS (“STAA”) may be more invasive than today’s IRS — the buyer is liable to pay FT and receive/show a receipt and so STAA may audit consumers — Sec 101(d). Also, we may have to file an “Annual FT Summary.”
As also noted by the Cato Institute, FT leaves us more vulnerable to winding up with both a new income tax and FT.
Seniors would start to pay for Social Security/Medicare again and some would pay a second-third tax on their earnings. Many middle class seniors would pay more FT than they would have paid in income tax, and many would lose purchasing power.
We need a Flat Income Tax; No deductions/exemptions/credits, a 10% rate, business income taxed only once on a very simple basis — IRS neutered, one-page filing, everyone pays, more evolutionary. See, a very flat income tax. Let your representative know that this is what you want.