FairTax, dryers, and lint-lint
dl at silcom.com
Mon Apr 21 10:24:27 PDT 2003
> > It looks like 97% of effective
> > federal tax rates are under 20%.
> > (even at 15%, which I think is
> > the FairTax equivalent to fed.
> > income tax, we get ~90%)
> Payroll taxes.
> Capital gains.
> Increased prices from corporate taxes.
> Do I really have to keep going?
No. Just come up with a better estimate
than "15%" for how much of the FairTax's
23% replaces only federal income tax (of
which capital gains are a part), or come
up with an "effective tax rate" figure
that is not based on adding up all the
possible applicable marginal rates.
(15% is 23% times the 65% "general revenue"
multiplier from the bill text)
> *Almost nobody* in this country pays an *actual, aggregate* federal tax
> rate of less than 20% of their economic productivity when all the
> direct and indirect effects are tallied up.
Okay, or we could tally them up. What's
the use of having FoRKers if they can't
be counted on to summarize and condense
external raw bits?
:: :: ::
You may ask yourself "why does Russell
always run for the corners?" That is
because the corners are the obvious
places to test things. In tax codes,
corners are even commonly recognized,
and go by the name of "loopholes".
Remember how the "Spanish Prisoner" is
supposed to work? A small investment
now will free up large sums later, of
which you get a cut. To the people who
run such schemes, it doesn't matter if
the large sums later don't materialize,
as long as they get the upfront money.
In this case, it sounds like FairTax
would leave some people much better off,
some much worse off, and most middling,
with the hope of large sums later.
I think Russell's technique of figuring
the politics by identifying the first
two groups has some merit, and perhaps
it is only my own scepticism (the same
which currently does not believe that
we are suffering Rebellion or Invasion,
so your mileage may vary) that insists
on knowing why the last group has any
confidence in their eventual gains, in
the face of immediate windfalls for the
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