LETTER: Read the FairTax fine print before deciding ‘fair’I’m a former FairTax supporter, until I read the fine print. President Bush heard about how great FairTax was, and ordered a review of it by his Tax Advisory Panel in 2004.
I’m a former FairTax supporter, until I read the fine print.
President Bush heard about how great FairTax was, and ordered a review of it by his Tax Advisory Panel in 2004.
William Gale, PhD, did the study, and while the tax panel was polite in public, that wasn’t the case in private.
There are a few details in FairTax fine print that you never hear in books, videos, speeches or letters like the one published Oct 1, written by FairTax spokesman Al Ose.
He didn’t include detail like all health care consumption is taxed 23 percent for things like cancer surgery and chemotherapy. There are no exceptions.
Specifically, the person using a good or service is the one liable. In the “Principles of Interpretation” in the legislation, H.R. 25, there are no exceptions.
People assume FairTax is a tax on retail sales at the store, but that’s not true.
As President Bush’s tax panel discovered from reading the legislation and documentation, most of FairTax has nothing to do with personal retail sales.
Most of FairTax is on city, county and states for their “wage pension and capital investment” expenditures.
Stunned does not begin to describe my reaction when I, a FairTax supporter, found these massive other taxes.
Nor are these other taxes in dispute. They are in the fine print.
FairTax spokesmen, if you nail them down, admit they tax all cancer victims, and all city county and states on their wage, pension and capital investments.
Why have all these taxes? Because without $1.5 trillion in taxes from cities, counties and states, the math is wildly off.
The tax panel reported if FairTax only taxed retail sales, the rate would need to be 89 percent Only by adding these clever and huge “other taxes” does their rate come to 23 percent on paper.
Furthermore, the fine print in FairTax documents cleverly admits they “assume” all city county and states will “raise their tax rates sufficiently” to pay.
Please do your own research — read the fine print in all the documents.
I have a blog about it, but President Bush tax panel are experts. Their report is polite and academic, but my blog says what the panel reported, just less politely. Go to http://fairtaxgoofy.blogspot.com.