I am a retired CPA, with no financial interest in any tax system. I can support every comment I make in detail.
The so-called “FairTax” is a fraud — it is Karl Marx on steroids and a Bernie Madoff-like financial scam.
In their own words, FairTax proudly advertises it increases welfare. The “prebate” is advertised as merely repaying the poor for any FairTax they pay, but actually would pay them far more than any FairTax they might pay and also gives the working poor free Social Security/Medicare.
The FairTax hits us with a 40 to 70 percent in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our 70 percent retail-sales-sensitive economy, 40 percent equals 30 percent FairTax plus 10 percent state sale tax and 70 percent is the rate needed at a sample 30 percent FairTax evasion rate. The FairTax incredibly assumes zero evasion and zero intentional reduction in spending.
In addition to that 40-70 percent tax, the FairTax contains several hidden taxes.
FairTax’s 30 percent rate is really 42-plus percent; the 12-plus percent is hidden by having federal, state and local government paying FairTax — they must get that money from you. The initial 30 percent rate is 1-5 percent short and that plus any other revenue shortfall will have to be made up by raising more FairTax or a new income tax. The federal budget for Social Security will rise because of the FairTax — the cost of living allowance of almost 30 percent and fraudulent new Social Security benefits — and more FairTax (or a new income tax) we’d be required to fund these.
The new IRS will be far worse, far more invasive than today’s IRS — we may well have to file an “annual FairTax Summary.”
We may well wind up with both a new income tax and the FairTax.
What we need is a flat income tax with no deductions, no exemptions, no credits and a 10 percent rate, with business income taxed to shareholders on a very simple basis — no corporate income tax.
Call your representatives in Congress and let them know that this is what you want.
For supporting details, call Stephen C. Eldridge at 423-532-7337.
Stephen C. Eldridge