The FairTax... A more "Voluntary" way to fund the government?

Posted by JohnConnor352 6 years, 8 months ago to Legislation
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I wrote this in response to this comment on the GOP Debate thread. I figured it was time to break it off.

Read the document in the link and comment below. The post was way longer than the maximum characters allowed here.
Lets discuss!

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  • Posted by DrZarkov99 6 years, 8 months ago
    You can't keep the government power to tax under control so long as you leave the implements to abuse revenue collection in place. Once the Fair tax is implemented, the controls are in place, with the only opportunity to abuse remaining in the ability to increase rates. However, an absolutely necessary element of implementing the Fair tax is abolishing the 16th amendment, shutting the income tax door.

    I agree the opportunity for fraud is greatly reduced with a consumption tax, and, as the paper points out, easier to catch. What may be a legal (sort of) outcome is more non-retail sales between individuals to avoid paying the tax. That will have to be very creative to have any significant impact, as venues such as ebay will report all sales and collect the tax, as will any online service created to enable such sales.

    With the tax rate so obvious on every sales receipt, making it harder to casually raise the rate, expect the government to hide revenue collection increases in fees, levies, tariffs, and duties (the original government revenue sources, pre-income tax). It wouldn't disturb me in the least to see the government motivated to return to such mechanisms preferable to the consumption tax, as those are directly related to government services provided.
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    • Posted by 6 years, 8 months ago
      I agree with your post except for on point. That you seem to assume that if an income tax is reinstated after implementation of the FairTax that we will increase our overall tax burden. That isn't necessarily the case.
      I'm looking at the political climate necessary to pass the FairTax, and it would be one that is grassroots and hard-fought. It would not be a climate quickly swayed or changed. That would give time to raise additional support for repealing the 16th amendment without opening the door for additional taxes.

      Last I heard from the FairTax team, they had written into the law that it would not take effect until January 1 of the year following the repeal of the 16th amendment. That may be a decade into the future, but having a president (not Huckabee, he's a theocrat) who supports the idea would go a long way towards moving public opinion.

      Perhaps an intermediate step could be a flat tax, and get people used to the idea of a less progressive tax code, while alleviating a great deal of fraud and complication at the same time. That in itself would grow our economy and put the lie to the progressive concepts of taxing the rich to feed the poor.

      Good discussion.
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      • Posted by DrZarkov99 6 years, 8 months ago
        Rand Paul appears to be proposing an attractive flat tax plan: 14.5% for all individuals and businesses, with no exemptions, no tax-free income, and the first $50,000 of income untaxed. He claims that his simple plan would also eliminate payroll taxes, creating enough revenue to pay Social Security and Medicare/Medicaid out of general revenue. The caveat on the latter is that Paul's idea would involve making SS a means-tested income insurance, and the medical programs likewise means-tested.

        As you point out, this is good step toward the Fair Tax, removing the exemption motivation that is the driver for so much tax fraud today.
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  • Posted by freedomforall 6 years, 8 months ago
    No tax on income production is a fair tax.
    No tax is voluntary.
    First cut spending by 75%, then ask for voluntary user fees to pay for the rest.
    As long as the fedgov does nothing for my liberty they get nothing from me.
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