Re: It's happening all over again.

On 24 Oct 2008 20:59:29 -0400, "Keith F. Lynch" <kfl@xxxxxxxxxxxxxx>
wrote:

mike weber <fairportfan@xxxxxxxxx> wrote:
whitroth <whitroth@xxxxxxx> wrote:
Keith F. Lynch wrote:
Some libertarians suggest the income tax be replaced, in a
revenue-neutral way, by a national sales tax. It's true that
would decrease the hassle factor and the invasion of privacy, but
it would be just as big a drag on the economy, and the switch from
an income tax to a national sales tax would constitute a massive
one-time transfer payment from everyone with savings to everyone
with debts.

Bull, again.

Someone with savings is taxed twice: Once when they earned the money
and there was an income tax, and again when they spend the money and
there's a national sales tax.

Sorry - i may have misread that; i was mainly reacting to the first
part of the paragraph.

Someone in debt is taxed not at all on
an amount of money equal to their debt: They spent the money when
there was no national sales tax, and they earned the money to pay off
their debt later when there was no income tax. So the transition acts
as a one-time transfer payment from those with savings to those in debt.

It transfers the heaviest load to the poorest, since they spend
more of their meagre income on food, clothes, etc.

The national sales tax would be on everything. And everyone spends
all the money they earn, unless they save it forever, in which case
they get no benefit from it.

Groceries and other basic necessities could be made tax-free, of
course, depending on the details of the proposal.

The current "Fair Tax" proposal envisions that everyone would get a
rebate check equal to the sales tax on a "poverty level" income.

That's another way to do it.

Of course, who's going to issue that rebate? The government, which
most "Fair Tax" proponents visualise as an evil monster that wants
to steal everyone's money and property.

I didn't say they were. But you ought to hear Neal Boortz, one of the
main "Fair Tax" proponents spout about it.

"Fair Tax" proponents presumably aren't anarchists, or they wouldn't
favor that or any other tax.

They may figure they aren't going to get "No Tax", so the go for what
they (clam) to consider a "Fair Tax".

And, of course, the "Fair Tax" movement visualises that businesses
will pass along every last penny of the savings they realise whn all
other Federal taxes are repealed to the consumer, making the tax
neutral for the consumer.

They have to pass along every last penny of the savings to their
consumers, their employees, and their investors, as there isn't
anyone else.

Yup - Investors. Not employees or customers.

I don't advocate it, but neither do I advocate the present income
tax, which is confusing and intrusive. Do you?

No, but i see a massive shitstorm of Bad Things quite likely happening
if/when the "Fair Tax" were to be enacted.

Sometimes King Log *is* preferable to King Stork.
.

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