Sunday, July 28, 2013

A Challenge Repeated

The last thing America needs is an attempt to radically change America through a disruptive Tax Reform Proposal. The US government has a problem with irresponsible spending and not one with taxation.

Unfortunately, there is a loud and well funded group pushing a radical tax reform proposal called the Fair Tax. This tax is based upon a fundamentally flawed understanding of economics. History shows that loud people can do great harm to the nation.

Last Month I challenged the Fair Tax supporters to a debate.

The challenge went unanswered. I will repeat the challenge.

I live in Salt Lake, I will be happy to drive to Denver, Phoenix, Cheyenne, Boise, or Las Vegas for a debate. I would like to stay within one day's drive of Utah to keep costs down.

The debate would be a simple format in which both sides present an argument to a group and the group voted on the path they find most promising.

The FairTax speaker would present the idea of replacing the income tax with a sales tax.

I would present the idea of creating an alternative to the withholding system that uses Tax Aware Accounts.

The audience would vote on the idea they like better. I contend that most crowd would prefer the path that empowers people and requires the least disruption. The FairTax disenfranchises workers and will result in massive disruption. I repeat the challenge I made last month.

Any group interested in hosting such a meeting could contact me.


Seeker said...

You are blowing smoke, Fairtax is fraud, you don't have it right, but you know its goofy.

Fairtax has very very few sincere active supporters, maybe 2-3 "zealots'. I cant be sure but it seems one or two could be employed at SOmeone works that web site, and developed their goofy "calculator" trick.

I don't think I ever showed you their calculator trick. About 2 years ago, every Fairtax page had a link to their "DARE TO COMPARE CALCULATOR"

Supposedly that "calculator" would tell you how much you'd save from Fairtax.

I already knew Fairtax was BS, but I worked the calculator anyway. At first, I didn't see the trick. IT's kinda like a party trick, or a magic act trick, kinda slick, but once you see it, it's obvious.

The "trick" I exposed in written testimony to ways means committee, and not long after, they took all those "calculators" down.

They had four separate calculators -- all the same hustle, the same trick, but they LOOKED way different, had different look and different words, but same thing.

Anyway, all those vanished, and it's impossible to fine one anymore. Also all think links to it were taken down.

Here is the trick -- in the "calculator"

They simply don't ask what you consume. Or buy -- but mostly, they don't ask what you CONSUME. If you "consume" heart surgery while you are on Medicare, you are liable for that tax. Naturally, they did not ask you for any "consumption" of surgery while in Medicare or Medicaid -

Nor did they ask if you "consumed" any health care -- even RX drugs. Those are taxed, but no questions.

No questions about ANYTHING -- nothing --absolutely no questions about your "consumption" or purchases.

And of course no questions on your State and local taxes, which would skyrocket under Fairtax, according to their fine print.

They ONLY asked about your tuition, your income, your interest rates, on and on. But none of those -- not one -- matter. They ONLY ask you questions that don't matter.

They might as well as you how many shoes you have -- that matters as much as the questions they did ask.

They might as well ask you the square footage of your garage. That matters as much as the questions they did ask.

The ONLY question that matters, in Fairtax, is your taxable consumption.

And they did not ask one question about it.

Think that was an accident? Four different calculators, four different "web sites" -- all with same hustle?

All taken down?

y-intercept said...

I've seen a large number of programs that I believe are fraudulent put into action.

People love clever little schemes; especially when they think they can get a partisan advantage from the scheme. "Being a fraud" won't necessarily stop the FairTax.

You are right. The weak point in the FairTax is the definition of "consume." You obviously don't like that health care purchased through Medicare is consider consumption. Personally, I see that issue as a wash because the doctors who provide care through medicare currently pay income tax.

Everyone will have different ideas about what businesses need to be saddled with the tax. The rich and powerful will quickly find ways to organize their lives so they aren't paying the tax.

Once the FairTax debate gets into the nitty-gritty of saying what transactions are taxed and which ones are not, everyone will be at each others' throats and it will be as bad as the income tax.

The income tax has the problem of defining exactly what is income.

BTW, I am quite sure that you would dislike my approach to reform. I want to create an alternative to the current withholding system. This reform accomplishes many of the things the FairTax claims to do, without the disruption.

Leila Peterson said...

The last paragraph has this typo:

I contend that most crowd would prefer the path that empowers people and requires disruptive change.

I disregarded it because I knew that you meant it does NOT require disruptive change.