Isn't it funny...

Woodchuck djv at bedford.net
Thu Apr 10 20:38:29 PDT 2003


On Thu, 10 Apr 2003, Jeff Bone wrote:

>
> That Woody sees FairTax as some kind of socialist ploy or leftist
> attempt to suck the gov't teat, while Russell apparently views it as a
> conservative conspiracy to screw the poor even more.

Well, you've joined Barerra in the act of plonking me, so it's not
entertaining at least to you. You will miss at least parts of my
wonderful, cuddly wit.

I see FairTax as a vehicle for more state, more taxes, more tax police.
I see these things in its details, its sins of omission and commision,
as revealed in the bill itself, not in the advocacy stuff on the
"freetaxvolunteer.org" website.  Since the primary material -- the text
of the bill -- is available, I believe the spirit of this list coerces
if not demands that it take precedence over secondary material.

> Russell, Woody.  Woody, Russell.  Discuss.  This should be entertaining.

Its (the bill's) first glaring omission is that it repeals only
the IRS enabling laws.  Instead, FairTax should make its imposition
contingent on repeal of the Income Tax admendment; my experience is
that the government will return to the income tax at some later date
if it can get away with it.  The repealing amendment should also
abolish inheritance taxes and one troubling thing: it should (must?)
grant the feds the power to tax the individual states and local
governments.

Yup.  FairTax the Bill applies its tax to consumption by all levels
of government.  This is a sly way to raise taxes from those who,
supposedly, it purports to gift with rebates.  Since state governments
do not create wealth, this tax will be paid for from the state
government's usual source: its own sales taxes (non rebated), income
taxes (state income taxes stay in place, and many are flat-rate or
regressive) and property taxes.  I believe and offer without
supporting URL that roughly half of governmental activity is now
state-local, and that constitutes a vast reservoir of taxing
opportunity, now tapped at 25% by the Feds.  Notice how this allows
a "secret backdoor" for income taxing to continue, using the states,
(or as they will become and should be called, "provinces") to collect
it.

Another point that the advocacy site glosses over is that this tax
will be collected by, when states have them, the existing state sales
tax mechanism, and paid over to the feds.  I suspect (but cannot
demonstrate) that part of the mass savings alleged for this tax
is due to funny business about the costs of collection.  I can only
suppose that the authors of FairTax either hate the people, or have
no experience with a state-run sales-tax bureacracy (California
Franchise Tax Board is one, no?).

Mr Turpin (I hope you are a man and not offended) will find his
questions about imports and exports (a new system of certificates),
and Mr Whore (who seems incapable of offense) will find questions
about barter and hobby-dodges answered in the text of the bill
itself.  Much of it seems to be conceptually modelled on the infamous
"Gun Control Act of 1968", creating all manner of "registered"
importers and "registered" exporters, and "registered" households,
one step from licensing.  Surely we couldn't allow, say, a convicted
felon, or someone who has yelled at his wife, from being a registered
importer of Canadian tea cozies, to be entrusted with the assessment
of The Tax?  Yes, licensing will quickly follow.  I can see the
future.

Just to rub it in, FairTax the Bill keeps social security cooking,
*including the reporting of income*.  Just now it is funded differently.
Perhaps this is the whole point?  It is a sort of selling point to
some partisans.

And Mr Bone's assertion of *VOLUNTARY* is largely bogus.  The same
degree of *VOLUNTARISM* would be present by creating, under the existing
income tax, a no-withdrawal-penalty, unlimited-contribution, self-directed
savings plan, and abolishing the death tax.

It's just another "Single Tax" snake-oil, like fiat currency or free
silver coinage.  The property taxes just mentioned are a vestige
of one of these snake-oil panaceas, the old "Single Land Tax".
Mumble something about David Ricardo here.  The "Income Tax" was
supposed to cure everything, too.

> jb
>
> PS - this only underscores how useless the whole notion of a 1D
> political continuum really is...  "Conservative," "liberal" ---
> whatever.

Conservative, liberal, and varmints shot and thrown in the killfile
for using "hir" sarcastically.

D.
-- 
   "If troops are attacking cities, their strength will be exhausted."
                               -- Sun Tzu



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