Frontpage

Bill Pelland · Joined: 25 Feb 2008 07:34 am Posts: 321

David Nelson- The following is the first part of the fair tax bill:

1 SEC. 2. CONGRESSIONAL FINDINGS.
(a) FINDINGS RELATING TO FEDERAL INCOME
TAX.�Congress finds the Federal income tax�
(1) retards economic growth and has reduced
the standard of living of the American public;
(2) impedes the international competitiveness of
United States industry;
(3) reduces savings and investment in the
United States by taxing income multiple times;
(4) slows the capital formation necessary for
real wages to steadily increase;
(5) lowers productivity;
(6) imposes unacceptable and unnecessary administrative
and compliance costs on individual and business taxpayers;
(7) is unfair and inequitable;
(8) unnecessarily intrudes upon the privacy and
civil rights of United States citizens;
(9) hides the true cost of government by embedding
taxes in the costs of everything Americans buy;
(10) is not being complied with at satisfactory
levels and therefore raises the tax burden on law
abiding citizens; and
(11) impedes upward social mobility.

(b) FINDINGS RELATING TO FEDERAL PAYROLL
TAXES.�Congress finds further that the Social Security
and Medicare payroll taxes and self-employment taxes�
(1) raise the cost of employment;
(2) destroy jobs and cause unemployment; and
(3) have a disproportionately adverse impact on
lower income Americans.

(c) FINDINGS RELATING TO FEDERAL ESTATE AND
GIFT TAXES.�Congress finds further that the Federal estate
and gift taxes�
(1) force family businesses and farms to be sold
by the family to pay such taxes;
(2) discourage capital formation and entrepreneurship;
(3) foster the continued dominance of large enterprises
over small family-owned companies and farms; and
(4) impose unacceptably high tax planning costs on small
businesses and farms.

You and I have been trading numbers back and forth, each of us trying to prove our position. The very name of the bill suggests that those who support it consider our tax system to be unfair. As I read over the list above I realized that some statements made have some merit and others may not.

All that said, it occurs to me over many exchanges the saying that dope dealers will have to pay taxes, or illegals will have to pay taxes. Lately the possibility that somehow this new tax system will bring our jobs back from overseas.

I realized that the issue goes beyond just economics but maybe goes towards some sense of unfulfilled justice, a frustration if you will with deeper issues that are bothering us.

Is it really the idea of progressive tax rates that make the system unfair or is it something else? Don't misunderstand. I still think the FAIR TAX bill is wrong for America and that my position has nothing to do with our current system. I believe the FAIR TAX is a dangerous idea. I also believe things could be done to the current system to improve it.

All in all, I'm tired of crunching numbers tonight and just thought I would reflect on the ongoing debate from a slightly different perspective.

What say ye....Deep down what is the 1 most appealing thing that attracts you to the FAIR TAX. Whether you answer or not is fine. I'm just trying to get a better handle on the appeal of the FAIR TAX in my own mind.

By the way, I hit the submit button by mistake so the earlier post, like five minutes ago, is incomplete.
Bill Pelland
Murchison, TX

David Nelson · Joined: 12 May 2008 12:27 pm Posts: 27

That is a great question, Bill. It has been a while since I read over that list, and I am reminded that I believe every single one of them. I'm curious which ones you don't think have merit.
Hands down the number one issue for me is A11. There are so many roadblocks in the way for someone trying to pull himself up; we don't need the federal taxation system to be one of them. I don't believe a family should pay a dime in taxes until they spend enough to be out of poverty. There are enough of the rest of us to take care of what needs to be done.
I know you don't like the way the Gale Institute study that first came up with 22% embedded taxes is used, and I agree with you that since we're giving workers their side of the payroll taxes, there will not be 22% reduction in prices. You should know that study was done independent of the FairTax and is a pretty accurate representation of what is currently built into the cost of goods we buy today. It is unconscionable to make an impoverished family pay that and the FairTax is the only model I have seen that completely frees them of the obligation to do so.

DavidFL10

Local Weather Forecast
Today: Current:72	Saturday: 91/67	Sunday: 92/70
Complete Forecast for Sep 06 2008

ONLINE EXTRAS

SITE SERVICES

BIBLE VERSE

Frontpage