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"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."

Frederic Bastiat

FAIRTAX 101 SPECIAL

By
webwench
@ October 9, 2009 8:39 AM
Permalink | Comments (14) | TrackBacks (0)

In cased you missed it, we'll be running the FairTax 101 special 9-10am ET. Then in the information overload hour, Neal will answer FairTax questions that you emailed us. Consider this your FairTax discussion thread.

What, you missed it AGAIN? Okay, here's a link to the audio. Oh yeah, and it was already sitting on the audio archives page. Check there every once in a while. You never know what we'll stick on there.

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What others are saying

  • No cheating
    Isn't Charlie Rangle cheating on his taxes the strongest argument for the FairTax? Even the the chairman of the tax code can't resist hiding his money from the IRS. No more cheating no more gaming of the code. The Fair Tax should be aggressively promoted every time one of these tax cheaters is mentioned in the news. Rangle cheater. Fair Tax
  • hour
    All the stations that I heard during the information overload hour had a "best of" from last week, instead. It pisses me off when apparently WSB gets the good stuff and all the syndicated stations get reruns.
  • RE kirk and mike
    Kirk, you can't do it first at the state level because goods and services are produced at the federal level and subjected to federal taxes, plus the fed will still have it's federal income tax which is the main reason for the fairtax. Property taxes are at a state level, not at a national level. Move to a state that has no state income tax.

    Mike, you forget that you wouldn't actually 'pay' a national retail sales tax with the fairtax. That tax would be included in the price and the retailer would pay it from the 'price' they price it at for their profit. They already do this today with a state's sales tax, a higher percentage wouldn't mean that much more work on their part. What you just asked for is a tax on top of the current system while still paying federal income taxes. Going back to the old analogy, the retailer prices something at $100, you only pay $100, the retailer would pay the 23% which is already inbeded. This is because the actual price would have lowered because of all the imbeded taxes are removed along the way. Opposite of the VAT where they tax the siht out of the producers then tax the siht out of you.
  • getting our feet wet
    How about a 1% national sales tax, to be increased by 1% each year (or two)just to see what it does and how people getting around paying it.
  • Riddle me this, Neal
    Can we start the fair tax on the state level, first? If we can eliminate ad-valorem and property taxes and institute the fair tax principles what would the percentage on the state level need to be? Additionally, how do we alter it when it comes time to make improvements to schools, roads, and public buildings? Are you recording the event for those of us that can't make it?
  • is it tax free??????
    will osamabama pay the tax fairly???????

    what am i talkin' 'bout????? his piece of the prize.....the NO BULL PISS PRIZE!!!! hahahahahahahaha......

    ol' nobel would blow his brains out!!!!!
  • @ Libertarian voter
    A state does not need to secede in order to pass the fair tax. In fact, States like TX and FL already have no income tax, and only a sales tax to fund state government. They do have a corporate income tax, but no personal income tax like NY or CA. Note that TX and FL are solvent while NY and CA are not...
  • More people
    Jay, currently there are about 100 million Americans paying federal income taxes. The fairtax would have about 300 million Americans, illigal aliens, and foreign vistors all paying into the system which would make up for the gov 'lose' of federal income tax revenue. Plus people would probably buy more products since they have more of their paycheck. This would increase production and jobs.
  • Jay
    And don't forget, Jay, you will keep all of your paycheck. Think you might buy more stuff if that happens?
  • FairTax 101 audio file
    If only there were an mp3 of this broadcast that I could email to all my friends who live where Neal isn't being broadcast, or at least a link to a podcast somewhere...
  • FAIRTAX 101 SPECIAL Archive
    Could you please archive this special and send out a link in the next Boortz Blast? I only caught the last 5 minutes.
  • answer to jay as I understand it
    In answer to Jays comment....
    The foundation of the program is a sales tax on new products. When individuals or companys purchase a newly produced product, they will pay a sales tax which is of a higher rate than people typically pay. However, the actual price of the item will not increase, because the sales tax is the same as the embedded taxes. The government collects the sales tax and uses it for their operations.
  • the fair tax,... Brilliant idea but will never pass
    The Fair Tax is a brilliant way to generate revenue for essential government functions and will spur economic growth.

    However, it will never become law.
    Here's why.
    1) There is a whole industry that makes its money off the current Internal Revenue Code. Examples are H&R Block, Turbo Tax etc. This group will fight to keep the status quo and have money to lobby.
    2) Since the mortgage interest is deductible on the 1040, the realtors and bankers will fight to keep the status quo. They also have money with which to lobby.
    3) Politicians use the Internal Revenue Service and the current tax code to create incentives to certain behavoirs. They will fight to keep the status quo because as many have said, they do not want to give up their power.

    I think that something drastic such as a State seceding and implementing the Fair Tax to show that it would work would be the only way for the Feds to get the message. Because people are not going to vote out their individual representative even though that same person thinks that the rest of the bums should be thrown out.
  • Fairtax
    I apologize if this has been explained before. Neal has said that an item that costs 100 bucks now has a lot of embedded taxes in it that will go away under the fairtax. Then, after the fairtax, competition will cause the item to be sold for less money until the price of the item will be approximately the same as before the fairtax. Therefore, the embedded taxes must be approximately equivalent to the fairtax percentage, right? So under the fairtax, the government loses all revenue from income taxes, yet the fairtax brings in no more than the embedded taxes used to. Where will the government get the money to run all their ridiculous programs?
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