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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

FAIRTAX INFORMATION HOUR TODAY

By
Neal Boortz
@ August 5, 2009 8:20 AM
Permalink | Comments (34) | TrackBacks (0)

Well, this seems to be as good a time as any to remind you that TODAY on the show we are going to dedicate one complete hour to the FairTax. During that hour I'll cover the following:

  • A brief history of taxation, including how politicians used wealth envy to sell the people on the income tax.
  • Who developed the FairTax idea, and why
  • How the FairTax works, and how it makes payment of federal taxes essentially voluntary.
  • How the poor are completely protected from paying any taxes at all to the federal government under the FairTax
  • The role the FairTax could be playing today in bring our economy back to health.
  • The current status of the FairTax in the Congress.
  • Answer questions from listeners and respond to the most common objections.

We'll have this hour for you at 11:00 am Eastern time with an encore at 3pm ET on our flagship station, News/Talk 750 WSB. Figure it out for where you happen to live.

Also, if you missed it, we're going to put the audio for this in next week's newsletter. If you are not yet a subscriber, you can sign up here

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What others are saying

  • Fair Tax a good solution
    Sorry, this is a little late.....

    To those who are saying the fair tax wouldn't work, take a look at NH for a moment. They have NO state income tax AND, NO state sales tax! But, they are still in good financial standing, their property values have not tanked as hard as others, AND they are still doing ok even in this hard economy.

    So, if that state can do well with neither income OR sales tax, how could the country go wrong with eliminating the income tax, BUT putting IN a sales tax?
  • Keep it simple
    Dear Neal,
    The liberals are highly successful because they lie, and they tell people what they want to hear, in simple, bite sized sound bites.
    Try this one, "Do you want to keep more of your money in your wallet, or less money in your wallet?"
  • where is the law
    Can someone please tell me the law that is actually written on the federal books that makes it a crime not to pay the income tax? Try finding it and when you do please let me know.
  • compliance costs
    Robert, I regret to inform you that compliance costs would not go down one single cent. Under the Fair Tax, employers are required to report all wages paid to the government (ostensibly for social security purposes).

    That means the current wage accounting they do now will still have to be done under HR25. In fact, all the tax code that HR25 repeals will have to be reimplemented, except for sections 1 and 11, as HR25 does not provide any meaningful definition of income or wages, which we will need on account of income reporting. Not to mention for purposes of the income tax contained in HR25... (section 905, look it up).

    And if income is getting reported, that means the reported incomes will have to get audited. That means the IRS doesn't really go away, although it may get renamed.

    Basically, a whole lot of what you've been told about the Fair Tax is simply not going to happen. They could have been made to happen, but unfortunately the implementation details actually in HR25 don't allow it.
  • To: Copyleft
    Tell us all, what percentage of each American's income is enough to satisfy you.
    If you want to break it down by income ranges, feel free. We just want to know how much is enough. How much of one's talent and labor should go to the federal government to do as they please?

    This should be interesting.
  • to: by the count... and John Morris
    "Any plan that hinges on the voters keeping politicians in line is doomed to failure right from the start."

    That would be everything that has been dreamed up and passed as a law since Gen. Cornwallis surrendered at Yorktown. The problem is that the current tax code helps shield Congress from scrutiny by obscuring exactly who the winners and losers are whenever a new tax law is enacted. With Fair Tax, ANY change in the tax rate would be immediately visible at the cash register. And any change to the Fair Tax being one rate for all transactions would also be just as easy to spot. It is currently written to remove the gaming of the system that is now standard in the current tax code. Yes, people would still have to pay attention once it is passed. We will ALWAYS have that responsibility, for any legislation, not just Fair Tax. But right now, what can we pay attention to? What part of the enormous tax code should we focus on? Which of the vast multitude of deductions, exemptions, schedules, and withholdings should we address as attentive and concerned citizens? You begin to see the problem when you consider that ordinary citizens are left feeling overwhelmed and helpless before a purposefully labyrinthine tax code.

    So when we finally pass Fair Tax, our first responsibility should be to guard against looters trying to re-write the law for their selfish gains. I fully expect someone will try it. I also fully expect that many people will have their attention elsewhere when the attempt is made. None of that means we shouldn't fix what is definitely broken.
  • Laurence Vance is confused
    Mr. Vance seems to think of the prebate under the Fair Tax as a welfare check. I guess he think our current tax refunds are welfare checks too. Yes, politicians can still monkey with the tax rate but the prebate is based on poverty level statistics calculated every year. It is not simply a percentage that can be manipulated. As far as the tax rates go, the Fair Tax's transparency makes it difficult for politicians to raise without public outcry. If they do attempt it, it is our job as American citizens and voters to stop that from happening by threatening the politicians' job.

    The Fair Tax is voluntary in that you can choose to purchase that big screen TV or not. There is no choice when the money is confiscated from your paycheck. You could also choose to buy a previously owned TV to which there are no taxes paid. You have to buy food and clothing which is taxed but the prebate refunds for these necessities. So, yes, the Fair Tax is voluntary.
  • Recording?
    Is there any way you can link to a recording of this or provide a transcript? I have friends who would like to read/listen and I would love to listen again. Thanks!
  • Copygirl
    "American Ideal"???? I want you to answer this question: what is YOUR definition of the American Ideal.

    Can't wait to hear this...
  • Copyleft, what definition of "liberal" are you using?
    I ask because the men who wrote that 'American ideal' were not the same breed of liberal to which you refer. "Liberals" of America's past would be called conservatives today.
  • The FairTax Information hour audio
    Can you post a recording of the lecture on your website ? Would like to listen to it offline on my ipod.
  • To: Patriot
    Sorry, but I'm a patriot till death. I'll stay right here and keep fighting the plutocrats and their brainwashed drones who keep trying undermine the American ideal.

    Which liberals wrote.
  • For Stan
    I do not understand why some people feel the need to open their mouths and prove their ignorance. The states that have no income tax are not floundering. Florida and Texas both have no state income tax and they are doing quite fine. With a little research you will find that the states doing badly have high state taxes used to pay for social welfare programs that grow and grow and grow which is unsustainable. The fair tax at the national level would bring jobs back home, reduce compliance costs to virtually nothing, and completly untax the poor. To the idiot that agreed with Stan, the Fair Tax has nothing to do with rich people wanting people to pay more for their goods. The tax goes to the government, not the rich guy. Also the actual cost of the good or service will drop and then go back to roughly where it is now with the added fair tax. In other words, prices will hardly change at all.

    In other words, think before you blog!!!
  • Copyleft...
    Your utopia is only 90 miles off the Florida Keys. If you can find a way to get there just stand on the shores of the Florida coast and take one of the boats of the Cubans refugees who used it to escape "paradise". Good luck.

    Please send us a postcard and tell us capitalist losers how wonderful everything is after you get there.
  • Be sure to listen
    Click on the "Listen Live" button at top right if you don't get 750.

    For instance, did you know it was rich guys who put up the initial research money?

    The prebate could be and should be tied to the poverty level and require a lot of votes to change, on a national level NOT congressional.
  • To: Dan
    I've read the book. I understood the book and all the arguments therein.

    I'm not for the Fair Tax. Amazing, isn't it? Maybe you can get the High Priest of your cult to excommunicate me or something....
  • Sorry to burst bubbles
    John Linder and Neal Boortz didn't pull this out of thin air, economists came up with the plan. It is flawless, no. Is it better than the way we are taxed now, I believe it is. We're getting tatooed by paying embedded taxes in addition to local sales taxes and then taxed on income, why not roll it all up into one tax that everyone pays instaed of punishing people who make more, spend more and who look for ways to circumvent the current system? Will people try to cheat the system? Hell yes. But we'd still be better off than the screwy guidelines that even Tim Geithner couldn't figure out. I thought people wanted 'Change' in this country. Isn't that why we elected an inexperienced novice armed with only slogans and ex Clinton handlers?
  • Good Plan
    Sounds good but how is government suppose to pay for national defense ?
  • Re: John Morris
    John, you are correct in your assesment. The Fair Tax advocates say this won't be possible because The People will hold their politicians accountable and not allow them to make such changes to the law. This is delusion. If The People were so diligent at holding the politicians accountable, the current income tax wouldn't be the mess it is today. Any plan that hinges on the voters keeping politicians in line is doomed to failure right from the start.
  • FAIRTAX.. YES..TRUE STIMULUS
    I live in a state where the states payroll taxes as well as several other forms of taxation are in place and we are still floundering much like california and a nearby state massachusetts.or as we call em taxachusetts..home of the kennedys..do as we say and not as we do, im still wondering how their family has so much money seeing how the base of all of it was made during prohibition and the money was undeclared us currency.aka ill gotten wealth.awful nice of the government to give out those stimulus packages it seems to be helping create lots of jobs for our polichickens friends we just hired a stimulus czar to oversee how our stimulus is spent a mere salary of not less than 100k per year with benefits.meanwhile most are floundering like fish outta water with zero stimulus jobs and zero benefits left to collect.unemployment claims will soon look great because the people are running out of benefits..home sales will be up because the banks will need to practically give these homes away due to the inability to pay out of touch property taxes..abolish the 16th ammendment and give us The Fairtax..
  • Laurence M. Vance
    His website sucks: http://www.vancepublications.com/about%20lmv.htm

    And why does he use his middle initial? Are people constantly confusing him with Laurence N. Vance? And what's with referring to himself as Laurence? Doesn't he know how lame that name is? Maybe he thinks Larry is worse, so he took the lesser of two evils. And last but not least, WTF is Laurence M. Vance?
  • Yahoo/Google/MSN this for the truth about the FraudTax...
    Read Laurence M. Vance

    -"Wealth envy" does not change when politicans can manipulate welfare checks instead of rates...this may be WORSE!

    -To say the FraudTax "makes payment of federal taxes essentially voluntary" shows how stupid-&or-contrived this "idea" is...do I HAVE to explain why this is a lie?

    -"the poor are completely protected from paying any taxes at all to the federal government under the FairTax"
    That is why the FraudTax is NOT fair...politicans can adjust the "prebate" welfare checks!

    Read Laurence M. Vance!
  • One problem with the Fair Tax
    Something has bothered me about the FairTax from the start. Seems there is a fatal flaw. All you need to do is think like a looter for a minute.

    Seems pretty obvious that nothing as radical as the Fair Tax would ever be passed with Democrats in charge, so things would go well for awhile after passing it. Heck, things would go pretty well regardless of what legislation passed so long as Democrats were out of power and not passing their usual stuff. But all good things end and sooner or later Democrats will get themselves elected again.

    So let us imagine Democrats faced with the problem of being returned to power but with the Fair Tax instead of the IRS to leverage in the quest to stay elected.

    The first, most obvious and likely last place to look is the prebate. Hello! Can we say free pass to income redistribution? I thought you could. Just increase the prebate until their voters are living totally subsidized lives at the expense of the filthy rich. Scaremonger em every cycle with "those evil Republicans will take away your check." And now it is everybody instead of just the Gray scene and the huddled masses in government housing.

    The only way I'd support the Fair Tax is if the Amendment striking the current Income Tax also put a hard sunset date on direct distribution of money. Use the prebate to ease the transition but longterm the power to hand out checks is equally as dangerous as the power to tax.
  • podcast?
    Please make this available as a podcast.
  • Allen Buckley
    fkaner, another great read is:
    http://www.smithmoorelaw.com/files/Publication/5d712df6-89c8-44fe-9210-0f4a2d957270/Presentation/PublicationAttachment/cbd77110-f7e3-49ed-a5a0-084910a883cf/20080125-dtr-buckley.pdf

    "Fair Tax" Ignores Economic, Mathematical, and Legal Realities to Buy Votes

    by Allen Buckley

    DAN, if you are for the Fair Tax, you haven't read the text of the actual bill.

    The idea of a national sales tax is conceptually not a bad one, but the implementation details of HR25 leave a LOT to be desired...
  • re: i'm so sick of the fairtax by stan's #1 fan
    "If the fairtax is so good then why are all the states with no income tax floundering right now while the other states are doing OK?"

    Would you please back this assertion with documentation? It's not wise to just throw words around. Most of us are NOT lemmings & prefer to see PROOF!
    Thanks.
  • hopeless cause
    The Fair Tax will NEVER see the light of day. This country is headed in the exact opposite direction.

    South and Central American peasants are flooding into this country (thanks to George W Bush). Granted, I don't blame them for coming, but it's crushing our economy and devolving our culture. Democrats will provide anmensty, and in turn these immigrants will help Democrats gain an overwhelming majority, which will end capitalism as we know it.

    Your best bet is to make as much money as possible before the roof finally caves in, and then figure out how to keep the feds from stealing it. Learning Espanol might be a good idea, too....not for integrating....rather for when you move to Costa Rica and meet your dream girl.
  • Imagine trying to sell our current tax system
    to people used to a single rate consumption tax on purchases.

    Go ahead and imagine how you would sell a system that penalizes success, rewards losers, is empowered to seize your asserts under the assumption that you are guilty until proven innocent, 67,000 pages of rules that they can't even determine how to interpret. Sell a system that makes you keep frigging pieces of paper for 7 years so that if they want to ream you years later, you can possibly prove your innocence.
  • fkaner@comcast.net
    Wonderful read about the Fair Tax @
    mises.org/story/1975
    Click on the first article at the top of the page.
  • "dangerous"?
    Reformers at the time realized that concentrations of wealth are dangerous to widespread economic well-being.
    By Stubb

    They may have thought that, but it is not true. It's only through that "concentration" of wealth that growth is generated.

    They definitely suffered from wealth envy.
  • Income tax
    The income tax is sold on wealth envy these days, but that's not the intent. It's to break up concentrations of wealth, which was part of the zeitgeist of trust-busting when the 16th Amendment was passed. Reformers at the time realized that concentrations of wealth are dangerous to widespread economic well-being.
  • Fairtax
    If you're not for the Fairtax, you havn't read the book.
  • I'm so sick of the fairtax
    I agree with Stan. I'm sick of hearing about this stupid fairtax. All it is is a way for the rich to get poor people to pay more for their goods. And what if the rich people don't feel like buying a yacht this year? The existing system is better because it expects payment immediately upon earning income.

    If the fairtax is so good then why are all the states with no income tax floundering right now while the other states are doing OK?
  • Tax on Labels
    Companies should show support for the Fair Tax by voluntarily printing the estimated tax burden built in a product price directly on the package. Like this: MSRP - $10 (est imbedded tax $3). This way people can be reminded of just how much tax they are paying when buying goods.
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