Obamacare - limited access to docs and hospitals

[CarlV]

Going by this chart used in the Wiki and Fact Check articles it just shifts 8% of the tax liability to those under 200k households.

Factcheck.org Article
http://www.factcheck.org/2007/05/uns...g-the-fairtax/

Wiki Article
http://en.wikipedia.org/wiki/Fair_tax



Carl

[merrylander]

Naturally, you were maybe expecting a different outcome?

[CarlV]

Politifact article sez

"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.

http://www.politifact.com/truth-o-me...dding-fairtax/

Did they prove Huckabee to be a liar? again?


Carl

[CarlV]

Forbes sez:

The Fair Tax calls for abolishing all federal taxes and replacing them with a 23 percent nationwide sales tax that applies only to new goods and services. For example a used car or secondhand clothes would be exempt, while groceries would not. In addition to a simplified tax, everyone would receive something called a monthly prebate check.

There are excellent reasons for wanting to place the tax on consumption rather than incomes or corporate profits. One of the largest being that all taxes have deadweight costs and consumption taxes have lower ones than income or corporate taxes. A deadweight cost being the amount of economic activity that doesn’t happen because of the tax: lower deadweights mean we can have more economic growth for any level of taxation, or if you prefer, higher taxes for any level of economic growth.

http://www.forbes.com/sites/timworst...tax-will-fail/

Don't want to pay taxes? Then don't buy any food!


Carl

[CarlV]

Well, that was fun.
I wonder what the Democratic spin sites say? (Not really)


Carl