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Reader comment on:
ScareTax, Not FairTax
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Submitted by Tom, Dec 18, 2007 08:45

Not much. First of, as we've covered ad infinitum and as you must obviously continue to ignore, prices do not go up by 30% due to the removal of the embedded taxes and compliance costs built into everything new we buy. They'll go up perhaps 10%, and that is easily offset by people's increased spending power when they have no more federal withholding of any kind taken from their paycheck. Then, of course, there's the prebate, which makes a certain portion of your spending untaxed as well. You forgot that little tidbit. Besides, everything has to be new at some point right? There's only so much used stuff. And if the prices of used items increase as you suggest, then guess what? Now the new ones aren't so bad and people buy them. Then the prices for the used stuff go right back down. People like new stuff. They won't stop buying it just because it has taxes built in, especially when they have more money with which to buy it.

The problem with your entire premise, in my estimation, is that you overestimate the unwillingness of the average American to pay taxes. I don't think the vast majority of Americans are adverse to it. They understand that it is part of the price of living in the greatest nation to ever exist. And when they know that they have more say in it, by paying only when they spend, they will find it much more fair. Certainly the option is far better than the Feds confiscating your money up front monthly or bi-weekly. Would there be avoidance? Of course. There is now and always will be. But not to the extent that it will cause any appreciable decline in manufacturing.

Not to mention the myriad other benefits to people and the nation as a whole that come with the system:

- America becomes the world's biggest tax haven in which companies can operate, bringing millions of jobs.

- American made products become more competitive both here and abroad, leading to, again, more jobs.

- 11 TRILLION dollars now sitting in offshore accounts to avoid taxes can come flooding back into our economy.

- Individuals no longer have to spend any time or money filling out forms, compiling receipts and records, paying to have their taxes done, etc.

I could go on, but that's enough for now. The system is not perfect, there is no doubt. There is no perfect way to collect trillions of dollars in taxes. But this system is clearly FAR better than what we have. When you take and honest, educated, informed look at the system, then it is actually a GREAT idea, not a bad one as you suggest.

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ScareTax, Not FairTax
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ScareTax, Not FairTax
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