As would be expected, The Augusta Chronicle supports the Fair Tax proposal that does nothing but give massive tax breaks to the wealthy.
Most reputable economists have written off this regressive tax as being unsound. In this proposal a family of four with an income of $100,000 who spend 70 percent of their salary on consumables and presently pay approximately 13 percent in federal taxes would pay 16 percent if the Fair Tax were enacted. A family of four with an income of $1 million who spends $500,000 a year and now pays 33 percent of their income in taxes would only pay 11.5 percent.
The majority of Fortune 500 companies now pay no federal income tax, so why would this be beneficial to them? Did the Chronicle consider what would happen to nonprofit organizations such as hospitals and colleges? Would the consumer have to pay 23 percent extra for health care and education?
Finally we, being Americans, would develop an underground economy where most services would be paid for under the counter. It has been estimated that the IRS would have to expand greatly in order to police this activity.
The owners of the Chronicle would obviously benefit. Yes, we do need tax reform, but this should be aimed at closing loopholes that decrease the taxes of the rich.
Anyone who is lucky enough to have million-dollar incomes likely has benefited from being an American and owes it to this country to pay more taxes.
Harold Szerlip, Martinez
Comments
We need the Flat Tax(12.5% on all incomes with no exceptions or deductions), not the Fair Tax. The only thing "fair" about the Fair Tax is the fact that it is fairly stupid and would lead to an underground economy that would have this country looking like Cuba. And that is why most reputable economists have written it off. If GM is having trouble now and bankruptcy is looming, try replacing our current system with a 23% national sales tax and see what happens.
i see Martin will get 2 votes. It's not an additional tax, it's a replacment tax. You know where to find the info, if you choose to wallow in ignorance - enjoy your blissful smiling day.
Well said PTHS!
Hay , Harold, we already have an underground econcomy with a lot of people paying no taxes. Home repair folks and handy men, some trades people like being paid under the table and a lot of illegal alians not to mention crimimnals like drug dealers and prostitutes. With the fair tax these people would be taxed on what they spend. Instead of punishing inovation and success the fair tax collects on what is spent. No more federal with holding etc. Foreign investment and industry would florish. Right now America has one of the worst corperate Tax systems in the World. When Diemler Merged with Chrysler headquarters went to Germany because of US tax structure. The fair tax would do away with the government cost of with holding tax and matching social security tax.
Hey, PTHS, no one said this is an additional tax. In fact, the letter writer understands the Fair Tax quite well. You, however, should get your facts straight. Explain to me how everyone pays less tax yet somehow the federal tax stays revenue-neutral?
Harold, where do you get your information? Have you read the fair tax book, you know, the one where you learn what the fair tax is? Your LTE seems right out of one of the reports that come out against the fair tax. You know, the ones that ignore what the fair tax is and just makes up "facts" to make their point. Ignorance is way too popular with the voting public. Whining and complaining without taking positive action seems to be easier to do. Every point made in this letter is false.
Sellout - I certainly didn't say everyone pays less tax. If you want to challenge me on something I actually believe, regroup and come on back. All of the answers can be found on www.fairtax.org. However, based on recent election results, half the country prefers to wander around drooling on themselves with blissful smiles of ignorance on their faces rather than be informed citizens.
Harold needs to do his homework and quit listening to someone else's rhetoric.
Name one benefit the "well off" receives from government, that's more than everyone else, and I'll agree with. Problem is, you can't. We don't need a flat tax, and we damn sure don't need this "REgressive" tax structure anymore. It's communistic as hell. We need the Fair Tax. BTW, the reason those companies don't pay taxes is because they pass them on to us. A "corporate tax" is nothing more than an ADDITIONAL tax on the individual, light brite.
Harold get informed.The Fair Tax Bill.ALL would pay taxes.Not just a hand full.By the way where is the money gonna come from.Money does not grow on trees.Take a basic economics course it might just help you.
Signal - Doctors ($250-400K)are mainly well off because the Fed provides a health care system they can use to make a living. Ditto for research scientists (top out on the $150K range) who need a functioning NIH. Lawyers need the govt to be functioning to have a job in addition to the legal process we all get. Bankers just got a gigantic gov't benefit and auto execs in the past (Chrysler) have gotten them. The top of the business food chain (Warren Buffet, Bill Gates, etc) don't pay anywhere near the same tax burdern percentage wise as we do. Last I checked i averaged about 28%. That same year, Buffet said he paid 16%. Buffet supports Obama, who will certainly raise his taxes. Go figure.
In general rich people spend more, therefore they would pay more tax. Sounds fair to me. The liberals hate it for the following reasons. When they deduct taxes from your paycheck, people don't complain as much because they see it as money they never had. Even better, take too much out of their paycheck, then give them a pidance back at the end of the year and they think their getting something for nothing. Everything changes with a consumption tax. All the sudden the people really see how much tax they are paying when they have to pull their hard earned dollars out of their pocket and pay uncle sam every time they buy something. Worse still for the liberals is that all of the sudden they don't absolutely control how much tax people pay; people choose how to spend their money and save their money thus choosing for themselves how much tax they pay. They can whine it's not fair because the rich have more "disposable income" than "working families" which is true, has always been true, and will always be true. You live within your means, I live within my means. They are not equal, and I have no right to ask you to pay my bills for me so I can have a nicer house or nicer car.
Most physicians major income comes from private payors, not the government. Don't mention that Warren Buffets 16% is probably more than 98% in Richmond county combined pays. Another liberal trick.. mix percentages and absolute numbers.. whichever has a more jarring effect. If Warren Buffet got a 1% tax break you wouldn't say that, you would say he got a $2,000,000 tax break.
A healthcare system the Fed provides? I'd like to know where you get that BS. BTW, Buffet doesn't pay 16%. He was manipulating his words in an attempt to get mind numb fools to think our upper middle class (250K) aren't paying enough. I guess it worked. If he makes a million per year in income, he's paying about 33%. He was referring to Capital Gains. A completely different tax than what his "secretary" pays.
Pay get your facts straight. Since 96 the income of U.S. physicians has declined. It use to be close to 80% of physicians would also give charitble care for those without insurance, now only 68% of those who make over 250K offer charity and lower incomes have stopped the practice. Fed health insurance almost pays half on the dollar of what private insurance will offer. I have three family member who slowly changed their mix to include more private and exclude the federal because they don't pay and they can't afford the shaft. If you had to depend solely on fed health insurance as a private physicians you would go broke in a year.
Not one of the "fair tax" zealots has adressed the State Income Tax problem and how they would make up the difference! But our belief that the little people will be happier is a trully american phenomom that I just don't get. As I have posted before, I lived in a country that was taxed the fair tax way and it was anything but! If you want to look at what a FAIR TAX economy is, just GOOGLE Thailand and you will see it is a severe two class society, very poor - very rich period. And signal always, I watched the inerview with Buffet, and you are completely wrong!
Disssman- What state income tax problem? The states would continue to tax in whatever way they see fit, same as today. I guess the only problem is that many states rely on federal tax code to determine taxable income. They would then have to develope their own. As far as Thailand goes, it is a 3rd world monarchy with little similarity to the US. They would have the same socioeconomic makeup regardless of the tax code. Why not look closer to home at Cuba. Same class structure as Thailand - very poor and very rich, yet their tax code hardly favors the wealthy. Hmmm, there must be something else at play there.
I have just written about the so-called FairTax and how its supporters are lying just 59 minutes ago on my blog. Wonderful LTE, Mr. Szerlip.
disssman, the fair tax policy does include state tax as well. The Thailand tax system is nowhere near what the fair tax proposes. Really, read The Fair Tax. It's short and easy to understand and it's interesting. You can get it in paperback. It's only about 180 pages. Some still had questions so a second book was released addressing those specific questions. Also easy to understand. Your insistence on addressing this concept from a position of ignorance is obvious to those informed.
disssman, willi agrees with you. That should tell you something.
wow...i'm not wealthy by any strectch of the imagination but i don't think the well off should be expected to pay more just because they are well off. if u earned it honestly then u earned it and u pay to caesar what u owe. it seems like most think that the well off should be penalized for being well off. its part of the beauty of America--u get out what u put into it--we all have choices and decisions to make in the land of the free and brave...if u want it go get it...no one supported me emotionally or financially in my decision to go to college--at 16 years old i paid for and filled out every application. my parents could have cared less. yes, i have student loans but i also have my dream job and don't regret the student loans they were worth every dime.
Well you'd be hardpressed to get the Dems to pass anything that is fair about our tax structure. Obama was more than clear he supports an unFair Progressive tax. Fair would be letting these private and govt chartered businesses collapse. It happens.
Why dont the people who consider themselves not "well off" get off their lazy backsides and do something instead of begging for a hand-out from the gov? It is amazing that some people think it is their right as an american to be giving what they want and not EARN it
Mr. Szerlip: A) You are an idiot. If you are not capable of reading a simple legislative proposal and understanding its elements, then refrain from commenting on it. Your letter is the equivalent of my complaining that there ought to be no speed limit laws, because I'm tired of all these idiots driving so fast and breaking the speed limit. Umm..... B) You have your wish. The rich pay more NOW. The rich would pay more under the FairTax. Either way, rest assured that the evil, stinking rich will pay more than the virtuous poor upon whom God smiles at all times because they are virtuous by virtue of being poor...
Signal Always..."lite brite"...TFF, man...I'm rolling...
Under our present progressive tax system, the wealthy (top 5%) already pay the majority of taxes, while those at the bottom, pay NONE and even get a welfare check called "Earned Income Credit". What's "fair" about that? I call it Obamanomics which is "distribution of wealth", better know as socialism. I say Fair Tax is the truly "fair" tax, where ALL pay. It might make some get off welfare and get a job to buy food.
Our current tax structure is unsustainable. It's also going to be the death knell to this Republic. It's being used as a damn chess board by politicians to pit one group against the other so they can retain power. ...and the Sheep keep voting them in. What kind of damn country are we living in when an entire party, the one that's about to control everything, makes it their mission to get their voters off the tax roles? We had a good run of it, but you idiotic Dems are but beggars to your own demise. The Republic will soon be at an end.
it is all going to crash in on itself soon anyway. we are being robbed by our govt in plain sight in broad daylight as they are smuggishly arrogant. i predict an uprising in the next 12 months.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson,
Read Cory's letter. Those are my thoughts to a T: http://www.tom-phillips.info/video/cory.miller-the.well.driller.htm
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