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Tuesday, August 09, 2005 

The Fair Tax Act (HR-25) is under attack… From the Right?

We hear the expected arguments from the politicians are about mythical burdens on the poor, and unfair breaks to the rich; but the real reason Washington opposes HR-25 (and any reform for that matter) is the control factor they loose. Not real control over your life, but control over your vote, and over the monetary flow of their lobbyists.

However, the only persuasive arguments against it, with some merit, are actually coming from the grass roots Right. The “Constitutionalists”, the “Libertarians”, and/or the “Constructionists” are stumping that this initiative will actually surrender yet more control to the Government. For much more information, visit JPFO’s website for an article against it, or an Outstanding Post by “John” on able2know.com. It goes into detail, and contains links to other articles about this point of view. I have pulled out a few quote from this information (in case you don’t want to read it all), that highlight their argument.

First, there are some hard numbers (finally) against what HR-25 proposes for revenue neutrality:

“If the federal budget is $2.399 trillion (that is the best number I could find) and the resultant tax rate is 30% (.30) then the dollar amount of goods and/or services sold would have to be $7.999 trillion. Since the consumer would have to pay for BOTH the good and/or the service AND the tax itself, the total cash outlay would be $10.399 trillion. If you divide $10.999 trillion by the (rounded up) number of Americans 300,000,000 you get $34,663.78 per person. Or put differently each and every single person in the United States would have to spend $34,663.78 each and every year for the Fair Tax to work.”

Second, they contend that as long as the 16th Amendment remains part of our Constitution we WILL be subject to an income tax in the future. Now, I think this could just be added to HR-25, then the problem is solved no?

So as not seem partial, I can give some prospective on where most of these people stand, I have pulled out a couple more quotes that show the potential paranoia of the dissenters.

“I believe that this bill penalizes individuals and families that do not"register" with the Social Security Administration. Therefore, any personthat does not have a social security number, hence, a national ID number,will not receive the proposed rebate. This discriminates against those that do not wish to be tracked by the government.” (Um, I dont think they care about YOU that much)

“In addition, the plan includes a monthly "prebate" check that will be sent to each taxpayer via direct deposit whenever possible. We will then have a captive nation--everyone dependent on the government for a monthly check--a nation under complete control of its federal government. One word of dissent and the monthly check can mysteriously stop, and the direct deposit account can be locked "by mistake." (Right, and then they will get their satellites tracking on you... TRUST NO ONE!)

But, I finally found some argument against the Fair Tax. I am leaning more towards it. If nothing else, I see this as a potential stepping stone to achieve real tax equality.