#FairTaxFriday Is Back!

January 4, 2013 16:52 pm

by Nathan · 18 comments

With the convening of the 113th Congress, newly-introduced legislation abounds.  Not quite so new is the reintroduction of the FairTax legislation, originally introduced by now retired Congressman John Linder, by Congressman Rob Woodall (R-GA-7)…Congressman Linder’s successor.

The Hill has a story about the bill, but here’s the synopsis of the bill:

Specifically, the bill would repeal the payroll tax, individual and corporate income taxes, the self-employment tax, and estate and gift taxes.

It would be replaced with a 23 percent consumption tax that people living at or below the poverty rate would not have to pay. The bill would require a “probate” to be paid to all residents that is equal to the consumption tax the poor would normally pay, thus sparing them from taxes completely.

Among the 53 Republican co-sponsors are House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.).

Consider this your late #FairTaxFriday thread.  Discuss among yourselves why you like or dislike the FairTax.

Charlie January 4, 2013 at 5:01 pm

“It would be replaced with a 23 percent consumption tax…”

Cue Indy’s head to explode in 3…2…1…

IndyInjun January 4, 2013 at 7:28 pm

Thanks to Google, I think the previous broadsides are still around.

The FT turns Linder and Boortz into the right’s Bill Ayers and Frank Marshall Davis.

Loads of fun are in there.

Spacey G January 4, 2013 at 5:04 pm

Right up there with matching socks right outta the dryer.

Charlie January 4, 2013 at 5:07 pm

Oh, and for those who haven’t played FairTax! Friday before, be advised:

If you at any point suggest to someone who tells you that something is wrong with this bill, and you reply “you need to read the book”, your computer will instantly deliver an electric shock. Or at least it should. Many if not most of us here have read the book. We’ve also read the bill. Funny thing about that. After this bill being reintroduced time and time again, no one seems to have made this great book concept into legislation that actually matches it.

Until that is done, it’s hard to take this seriously as more than additional kabuki theater to make you think that someone is working on tax reform when in fact, almost every one of those co-sponsors knows this bill can’t be implemented as written. I yeild the floor back to Indy for further questions as to why.

IndyInjun January 4, 2013 at 7:36 pm

Exactly. Thanks for the computer shock warning to the unwitting. A 1000 arrow fusillade has no warning. (An arrow already carries a 12% federal excise tax to which the FT would be added, so arrowflingers go on the warpath at the slightest hint of even more unfair taxes.)

IndyInjun January 4, 2013 at 8:16 pm

OK, I will bite.

I like the FT for the unexpected consequences that will make surprise winners and investment opportunities, as my analysis is always on mitigating losses and maximizing gains. My lips and typing fingers are silent on those matters.

If we were to start from scratch, a consumption tax might be my favored tax system, but not in an age of wage arbitrage of the magnitude that we have.

John Konop January 4, 2013 at 9:19 pm

If the Fair Tax ever passed I would go on a buying spree of real estate when it collapse the market. It would bottom at about 30 to 40 percent of current value, that would be the time to buy. And than I would rent or sell the houses I bought used with real cash and no 30 percent tax and finance the homes to the fools that voted for it. Indy we could make a fortune off the fools parade…….

IndyInjun January 4, 2013 at 10:28 pm

The renter would have to pay us the 30% tax and we would have to remit it to the revenueer’s. The tax ‘might’ impact our rents. If we finance, it would have to be at the Treasury bond rate, now about 2%, otherwise we would have to charge the borrower a 30% Fairtax on the rate difference as a taxable financial services transaction.

Credit cards would be goners because paying the 30% FT on top of a 20% financial services taxable balance would blow usury away.

John Konop January 4, 2013 at 10:39 pm

That is why you would be good partner! So we could inflate the price and charge 2 percent and hold the paper. And charge 10 percent more for people who still have fair tax buttons for risk………when the fair traxers destroy their credit and many othet people, they will have few options for negotiating……Cash will be king……….

mpierce January 7, 2013 at 10:23 am

That would take the rate from 20% to 26%.

saltycracker January 4, 2013 at 9:58 pm

We’ve vented lots about the off-the-grid and underground economy. A fair tax could be the golden fleece for those. But it is not worth debating as politicians & lobbyists will continue to morph the idea until it is unrecognizable. Will be fun to re-define poverty levels and what constitutes income.

John Konop January 4, 2013 at 10:10 pm

I agree, that is why I would replace the payroll tax with a VAT to capture underground………as well as widen the people paying not just workers…….

The Last Democrat in Georgia January 4, 2013 at 11:36 pm

I say eliminate all income and sales taxes and replace them with just a simple corporate tax.

Because the term “corporate tax” sounds a lot better than the imagery that most people seem to get (and the imagery that the left loves to conjure up) when they hear the term “national sales tax”.

IndyInjun January 5, 2013 at 12:28 am

We will get back to tariffs, as the affection for globalism is swept away by a tsunami of nationalism.

saltycracker January 5, 2013 at 9:03 am

Tariffs are have merit when used to keep things in balance and domestic businesses could be taxed equitably across the board. But we prefer to develop incentives for particular companies. Heaping on more laws/regulations for select enterprises keeps money flowing to the lobbyists and legislators.

http://www.dca.state.ga.us/main/quickmenuListing.asp?mnuitem=PROG

IndyInjun January 5, 2013 at 9:31 am

Aha, DCA……Georgia’s purveyor’s of Agenda 21. The FT would render DCA extinct, for there is no way they are an essential taxable government service and as a nonessential taxable government service, would be cannabalized by “essential” services for which the public would be willing to be taxed.

Georgians really don’t want to be taxed to support an agency which is a front for a Southfaced parasite.

IndyInjun January 5, 2013 at 2:38 pm

Too bad Boortz will be retired when FT is passed, if it is passed.

The idjit, would have been first in line looking for an exemption, because broadcast media would have been the first, and most direct casualty, of the FT.

John Konop January 7, 2013 at 7:57 am

Like the last crisis created by fools a lot of money to be made……..the free lunch crowd always wants to believe the spin………

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