Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 5 (5 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   8 comments

Exclusive to OpEdNews:
OpEdNews Op Eds

FairTax: Too Good To Be True?

By (about the author)     Permalink       (Page 1 of 4 pages)
Related Topic(s): ; ; ; ; ; ; , Add Tags Add to My Group(s)

Must Read 1   Well Said 1   Interesting 1  
View Ratings | Rate It

opednews.com Headlined to H3 10/6/10

Become a Fan
  (4 fans)
- Advertisement -

What would you say if I told you we could get rid of all your existing federal taxes income tax, Social Security, Medicare, capital gains, estate tax, all corporate taxes, all federal excise taxes, the works and get you a big pay raise at work and send you a government check in the mail every month for the rest of your life?

That's not all: you would never have to complete another Form 1040 again. April 15 could once again be known as the day Leonardo was born, the Titanic sank, and Lincoln died. No more "Tax Day" for you.

If you were the average Tea-publican, your reaction might be, "Something for nothing? I'll take it!" If you were anybody else, though, you might recall your parents' warning about things that look too good to be true.

And you would be right.

Meet FairTax

This taxation scheme is called FairTax. It proposes replacing all federal income taxes with a broad-based consumption tax on new retail sales. Rep. John Linder (R-GA-7) has introduced the "FairTax Act" in each Congress since 1999. He coauthored The FairTax Book with right-wing radio talker Neal Boortz in 2005, and FairTax: The Truth in 2008 (the title of the second book makes you wonder what the first one contained).

Republican Rick "Gather your Armies" Barber recently ran for Congress in Alabama's 2nd District on a FairTax platform. He lost.

- Advertisement -

FairTax piqued my interest because, knowing Conservatives' penchant for deceptive naming (the "USA Patriot Act," and the "government takeover of health care" are just two examples), I had a pretty good idea of what the FairTax was not. I wanted to understand what it was.

Here is an overview of how FairTax is supposed to work.

1. Eliminate all federal taxes. Get rid of the IRS, too.

2. In their place, introduce a national sales tax a federal consumption tax on all retail purchases to be collected at the point of sale. Proponents would collect $23 in taxes for each $100 spent a 30% tax rate.

3. Corporations will pay no taxes under FairTax, so they will be able to lower prices on most goods and services sold at retail.

4. There will be no payroll tax deductions under FairTax, so every working American will receive more money in every paycheck.

5. To accommodate people living on subsistence incomes, the government will send a monthly advance rebate ("prebate") check to every household in the United States to offset the taxes people pay on purchases up to the poverty level.

The theory behind not taxing corporations is that the government exists for its citizens; that corporations are not people; that citizen-stakeholders (employees, customers, shareholders, suppliers, communities) derive economic and social benefit from the corporations' existence; and that, therefore, citizens should bear the full cost of government.

In light of the January 2010 Citizens United vs. F.E.C. decision, this theory may no longer be defensible. If corporations are going to benefit from First Amendment and other Constitutional protections and guarantees, then they are obliged to help foot the bill for government, just as they do now.

Two Threshold Questions

FairTax is a radical departure from the way we fund the government now so much so that two threshold questions seem relevant: (a) is it Constitutional? and (b) does it fund the government? These questions are important because if the answer to either one is "No," then none of the details matter.

Next Page  1  |  2  |  3  |  4

 

Rick Wise is an industrial psychologist and retired management consultant. For 15 years, he was managing director of ValueNet International, Inc. Before starting ValueNet, Rick was director, corporate training and, later, director, corporate (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon


Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

HOW TO AVOID THE UNION

WILL GOP REBUT OBAMA'S EDUCATION SPEECH?

A Conservative's "12 Days of Christmas"

"I Don't Want to Pay for Somebody Else's Health Care"

Reconsidering Iraq: What If We Had Been Greeted as Liberators?

FairTax: Too Good To Be True?

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
5 people are discussing this page, with 8 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

If my parents were always right, does this mean th... by Joni Greever on Thursday, Oct 7, 2010 at 12:10:59 PM
Thank you for the kind words! I think as our kids ... by Richard Wise on Thursday, Oct 7, 2010 at 3:15:56 PM
As I read the books and thought through the implic... by Richard Wise on Thursday, Oct 7, 2010 at 3:25:50 PM
Hello,As I am reading your article, it prompted me... by Chris Chris on Thursday, Oct 7, 2010 at 6:12:16 PM
Thanks for the comment, Chris, and welcome to OpEd... by Richard Wise on Friday, Oct 8, 2010 at 1:35:22 PM
but the comsumption tax is the only way to go with... by Michael Morris on Thursday, Oct 7, 2010 at 6:34:02 PM
The fair tax is extremely unfair and unjust. It hi... by David Chester on Friday, Oct 8, 2010 at 6:05:42 AM
This is an entirely different view of the world. J... by Richard Wise on Friday, Oct 8, 2010 at 1:51:53 PM