09-27-2013, 11:04 AM
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Senior Member
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Join Date: May 2009
Location: SF east bay
Posts: 4,455
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Politifact article sez
Quote:
"Even with the rebate counted the way the Fair Tax supporters want it calculated — as a reduction in tax liability rather than an increase in income — there would be an enormous shift in the tax burden from the wealthy to those with lower middle incomes," Bartlett wrote in a story for the magazine Tax Notes.
Enforcement is also a significant concern for the Fair Tax. The 23 percent tax rate supported by the Fair Tax proponents assumes that most people would pay the taxes they owe. Economists say that when sales taxes reach that level, the incentive for people to cheat rises. People will try to buy things off the books, and underground economies will develop. To compensate for tax evasion, the tax would have to be raised even higher, which would lead to more evasion. Abolishing the Internal Revenue Service would exacerbate this problem, said economist Dean Baker, co-director of the Center for Economic and Policy Research in Washington, D.C.
"At the end of this story, when you add in some state sales taxes, we could be close to 50 percent," Baker said.
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http://www.politifact.com/truth-o-me...dding-fairtax/
Did they prove Huckabee to be a liar? again?
Carl
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Russians who vote elect Republicans
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