FairTax, doom, and net-net

Russell Turpin deafbox at hotmail.com
Thu Apr 10 17:07:33 PDT 2003


Jeff Bone:
>If, say, they are in the lowest non-zero tax bracket - 20%? - they'll get 
>an effective 25% raise.

Again, I think this confuses marginal and
effective rate. Most people who are in the 20%
bracket have an effective tax rate quite a bit
below 20%.

>The dollar losers are the parasites that suck up utility in the current 
>system.

Well, of course. The blood-sucking parasites are
the targeted losers in any proposed tax change,
right? I'm just a bit confused about how this
proposed change targets that group and whom its
proponents put in that group. It's not clear to
me that someone in the 20% income bracket, whose
effective tax rate is, say, 5%, automatically
falls into that category. That characterizes a
lot of voters, and that is precisely where the
political fight will be aimed, which is why the
FairTax is a lost cause, no matter how much talk
it has gathered in conservative circles.

Personally, I would love it. It would decrease
my federal taxes by five orders of magnitude,
something of which I'm quite aware this month.
So yeah, if it comes up for a vote, I'll lobby
my congressmen. But it won't get that far.


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