Why the Fair Tax bill is not a good move?

I know I say that my blog is a computer weblog, but I’m going to stray away from this a bit to talk about the Fair Tax bill that is currently being supported by almost all the people running for President.

If the Fair Tax bill passes with the stated max of 30%, think of how much you will be paying for a certain good? You will be paying the normal price of 2008 (granted that it takes effect in 2009), plus the inflation that this will cause since the supply of the goods is going to over exceed the demand of the products, in addition to the max 30% tax.

The Fair Tax bill is supposed to shut down the IRS, but is this a good thing? ABSOLUTELY NOT. Think how many people live paycheck to paycheck and depend on a refund sometime during the next year. People will continue to spend money like they always do, but will still think they are going to get a refund somehow. In 6-12 months people will realize that they are spending all of their money and will not have anything to put into a bank. Because of this, it will cause most banks to shut down since they will run out of money and people will scramble to take their money out of the bank in order to pay their bills (which will by the way raise because the dollar will be worthless).

Also what happens to grants, unemployment, social security and other things funded by the federal government. If you give the government less money then they will not be able to offer these great services.

Before you think about hopping onto the bandwagon for this bill, make sure you know all the details of it. The future looks really grim if this bill passes.

February 22, 2008 - Posted by hackman2007 | Uncategorized | 2008 election, 2008 recession, depression, dollars, economy, election 2008, fair tax, fair tax bill, great depression, money, recession, recession 2008 | 3 Comments

3 Comments »

Josh,

You don’t know what your talking about. Have you or do you currently own or run a for profit business?

Have you ever employed anyone?

Have you produced a product or service for consumption under the current tax system?

Do you understand the impact of tax law on our economy?

The Tax Bill HR-25 is a good move. It can be improved upon, but it is by far better than the current system.

Steve

Comment by steve | February 23, 2008 | Reply
No, I do not own my own business or anything of this nature. Nor did I imply this at any point in my blog.

I’m strictly speaking in terms of the consumer, which evidently you don’t know what you are talking about. How about you read my blog post before you post a comment next time?

Do you understand the impact of removing the IRS and therefore leaving hundreds of people without a job will have on our economy?

FOR CONSUMERS, this is not a good deal because WE have to pay 23-30% tax on all the new products that we purchase which will raise prices and cause inflation because the dollar won’t be worth as much.

I did not post this blog post with intention to the producers of the good.

Comment by hackman2007 | February 23, 2008 | Reply
Our family owns a small company — and Fairtax would be a disaster.

Businesses do NOT save 22% on this nonsense, they can NOT lower their prices 22% because of this farce.

Look at Ford and GM for example. IF you think they can lower their prices 22 percent, because they wouldnt pay corporate income taxes — you are insane. They don’t pay corporate income taxes NOW. They haven’t for years — cause they are losing money.

Almost no airline has paid corporate taxes for years either.

Yet Fairtax would RAISE the prices of their products to absurd levels.

How will taxing renters 30% on their rent help our economy?

How will taxing cancer victims 30% on their surgery and chemo help our economy?

How will taxing nursing home patients 20-30,000 a year help our economy?

How will taxing people who buy new homes 50-200,000 help the sale of new houses?

Fairtax is actually absurd nonsense. Not only would it be the worlds HIGHEST sales tax — it would be a tax on things no other country even taxes — medical costs for example.

But the biggest absurdity of this farce – and fairtax is literally a farce — is that Fairtax would make the FEDERAL government pay 800 billion a year — TO ITSELF. Which is about as dumb as you can get, and still be able to exhale. The federal government CAN NOT POSSIBLY pay itself 800 billion or more a year. Or even 8 dollars a year.

Neal Boortz writes in his Fairtax (Farcetax) book, page 148 “The federal government ITSELF would become a MAJOR taxpayer.”

Nonsense — utter nonsense. When the federal government “pays” itself, it has to WRITE the check that it CASHES. Where on earth do you think the money will COME from, when it PAYS those checks?

This absurdity is how Fairtax can make fools believe the tax would “only” be 23%. Take away this absurdity, and the REAL rate would be over 50%.

SO Fairtax can’t possibly BE 23-30 percent, which would be a disaster anyway. It would be much higher.

Imagine a 50% sales tax on a new house. Imagine what THAT would do to new home sales. Imagine what a 50% sales tax would do to new car sales, to nursing home patients.

This lunatic fairtax is on car insurance too — health insurance, utility bills, gasoline, phone bills, cable bills, food, everything you buy.

What do fairtax groupies think will happen to new home sales, when they tax it 30-50%? Here is a clue — new home sales would plummet. Who in their right mind would pay 500,000 for a house that would otherwise sell for 300,000? Not many. New home sales would go into the toilet.

And BECAUSE they would go into the toilet, fairtax would have to rise even MORE, to make up for that lost income.

And other parts of the economy would ALSO go into the toilet,like auto sales, so Fairtax would have to rise even more.

I actually hope it passes. Its so stupid, so insane, so absurd, that maybe if we pass it, we can learn something about economics in this country.

But the real funny thing about this Farce tax, is that its leaders know its bullship. They know you can’t really make the federal goverment pay itself 800 billion a year, they know that new home sales and car sales would go into toilet, they know that nursing home paitents and cancer victims aren’t going to pay this huges sale tax.

They know Fairtax can’t possibly collect half as much money as it needs. They don’t care. They aren’t really trying to pass it. THey are trying to fool gullible people — to get elected, to sell books, to get attention. And that part is working.

IF Fairtax leaders really believed this nonsense, why havent they done more to actually pass it? It has over 50 sponsors in Congress. It supposedly will be the biggest economic wonder in the history of mankind. It supposedly will save American companies five hundred gazillion dollars — why hasn’t it passed?

Cause its NONSENSE, and its own “leaders” know it.

Comment by Mark | April 8, 2008 | Reply