Thread: FairTax and Trade

Just a note to anyone who is interested about the vehicle of the FairTax to resolve trade deficits.

1. The FairTax taxes consumption at the retail final point of sale instead of taxing income. That means every element from manufactured parts, services, research, technology, transportation, components, energy, everything that is part of the supply chain of that product or service is taxed at the final point of sale of the final product or service. There is no tax on the producers, only the consumer.

2. As a result every sale of every new product or service in the United States is taxed the same by the FairTax, whether domestic or imported.

3. As a result of that, our producers are on a level playing field with a comparative advantage over foreign producers.

4. As a consequence of that, you don't need trade agreements or complex trade deals to balance the trade deficits. You might need them for unfair practices like stealing intellectual property and currency manipulation, but you don't need them to balance the trade deficit, the FairTax does that without confrontation, without debate, without arguments, trade wars, etc., because it just balances in normal course, because with the FairTax everyone is charged the same tax, and because our domestic producers are here with tremendous location, intellectual and technological advantages, our producers will prevail over foreign competition.

I strongly urge the President and Congress to consider this enormous trade fix advantage of the FairTax as everyone is blowing up over "tariffs". The FairTax does not eliminate tariffs, both the President and Congress would retain the right to impose tariffs for national security, trading violations, dumping, and any other reason they have, but they would not be necessary to balance the trade deficits. The FairTax will do that automatically in due course and do so very quickly without fuss or muss or international conflicts and disputes.

GET SMART!!! FAIRTAX NOW!!

Just say NO to the unfair tax fraud!

http://fairtaxfraud.com/fair.asp

It's people like the poster of the last reply who have prevented this legislation from passing in the US Congress for 19 years. Meanwhile, foreign competitors eat our lunch, steal our money supply, cost 70,000 manufacturing plants, millions of manufacturing jobs, trillions in lost wealth in trade deficits and grown poverty programs that have grown the national debt to $21 trillion plus more every day until we solve these trade problems.

The FairTax isn't about an individual's little loophole situation they've secured through the complex income tax, the FairTax is about an economic system that benefits every person and business in the United States. It's time all Americans got their eyes off themselves and their own little personal tax deals and put them on what's best for the country as a whole.

Originally Posted by Judy

It's people like the poster of the last reply who have prevented this legislation from passing in the US Congress for 19 years.

Judy's blood is boiling so much she can't even say his name!

I am for a different tax system. But I see many flaws in this "FairTax".

For instance, Judy writes:
"1. The FairTax taxes consumption at the retail final point of sale instead of taxing income."
This will create a big opportunity for a black market. Selling the products anywhere along this chain would net an easy 20% profit.

A proposal I had is a point of origin tax. A manufacturer or importer pays a tax on each item when it ships out, base on the MSRP. After that, distributors and retailers are free to mark up or down the price, in competition however they see fit. the tax is already collected. So there would be little advantage to selling to the black market.

"3. As a result of that, our producers are on a level playing field with a comparative advantage over foreign producers."
Wrong! Foreign producers not restricted by environmental laws and wage laws, can still undercut domestic producers.

"4. As a consequence of that, you don't need trade agreements or complex trade deals to balance the trade deficits."
Wrong! If another country slaps a 100% tariff on imports from us, they win. we have no protection.

Originally Posted by Judy

the national debt to $21 trillion plus more every day until we solve these trade problems.

The Trade Deficit did not create out National Debt. That is directly the Congress spending more money that we take in. And borrowing those $22 trillion dollars causes inflation which increases the cost of everything, including the interest on that debt. INFLATION BAD!

Originally Posted by Judy

The FairTax isn't about an individual's little loophole situation they've secured through the complex income tax, the FairTax is about an economic system that benefits every person and business in the United States.

ANOTHER FALSEHOOD. It just spreads the burden around to more people, like those in criminal activities and under the table transactions. Of course it will not benefit them.

Add another one to the list of people who do not understand how our economy and trade works to the list of opponents to the FairTax who have denied the American people and our businesses all the advantages of the FairTax for 19 years. No business "along the chain" pays any FairTax, thus there is no tax for a business to avoid with a "black market".

There is no advantage to foreign producers under the FairTax. They may have products we want to buy, fine, that's no problem. They are free to charge whatever tariff they want on US exports, our exports are tax free under the FairTax, let them have at it. We don't care. If the price is too high their own consumers are denied access to our goods. So what? Are they going to starve their own people? Their choice. Are they going to turn the lights out on their own people? Their choice. If they want Chinese Bourbon instead of Kentucky Bourbon, their choice. We don't care. Our exports are such a small piece of our economy, it doesn't matter. It never did. Exports out of our economy just raise the price of the goods for US consumers. Americans don't want to buy products produced by slave labor from countries that pollute the planet. That's our choice, not theirs.

The purpose of protection is to protect our market, our consumers, our businesses from companies overseas who use slave labor, who pollute the planet, and subsidize their businesses because they're owned by the government.

The FairTax does all of that for US. Under the FairTax, our companies will be able to produce and sell to US and anyone else who wants our products and services and while their companies are burdened with socialist taxes, communist economic theories, and the stupidity that accompanies that, our companies, lean and mean, free of tax can compete with them every day of the week and twice on Sundays. That's all the US has ever needed or wanted. And that's exactly what we get with the FairTax.

The national debt is the direct result of free trade policies, in fact, if you compare the deficit each year with the trade deficit of that year, they are virtually the same. You think government spending is responsible, but you don't know why the government spent the money, the government spent the money supporting Americans who lost their jobs because of deficits caused by free trade policies that were started in 1913 by the income tax. The income tax act was passed in 1913 to cover the losses of tariff revenue because Congress reduced tariffs and that relationship between the income tax and free trade has not only continued but grown dollar for dollar every single year, and when you cut income taxes trying to prop up the economy, you are left without the money supply operating within our borders due to imports that would have otherwise been supplied by domestic producers, leaving the government with more unemployed and under-empolyed Americans to support, fewer businesses and individuals paying income taxes, and the deficits are paid with borrowed money supply usually from the same countries who stole our companies and jobs to pay for it.

When you don't understand a tax plan or the US economy, you probably shouldn't comment on it as if you do.

Originally Posted by Judy

Add another one to the list of people who do not understand how our economy and trade works to the list of opponents to the FairTax who have denied the American people and our businesses all the advantages of the FairTax for 19 years.

Originally Posted by Judy

No business "along the chain" pays any FairTax, thus there is no tax for a business to avoid with a "black market".

You really don't know what the black market is! If a manufacturer or importer sells their product to the black market, no tax is paid/collected on that product. That is attractive because the end user price will be lower by the amount the tax would have added.

Originally Posted by Judy

There is no advantage to foreign producers under the FairTax.

And no penalty. And if they can smuggle it into our country, they evade that tax quite easily!

Originally Posted by Judy

They may have products we want to buy, fine, that's no problem. They are free to charge whatever tariff they want on US exports, our exports are tax free under the FairTax, let them have at it.

And that keeps the trade deficit we have right now! Not point to a change for that.

Originally Posted by Judy

We don't care. If the price is too high their own consumers are denied access to our goods.

So we will continue to have a trade deficit because they will export to us, but not import from us.

Originally Posted by Judy

Our exports are such a small piece of our economy, it doesn't matter.

So why all the crying about tariffs? You are ignoring a lot.

Originally Posted by Judy

Exports out of our economy just raise the price of the goods for US consumers.

Wow! That's not what the farmers and other exporters claim!

Originally Posted by Judy

Americans don't want to buy products produced by slave labor from countries that pollute the planet.

You have sure been drinking a lot of that Koolaide! We wouldn't have a trade deficit with China if that were true!

Originally Posted by Judy

The purpose of protection is to protect our market, our consumers, our businesses from companies overseas who use slave labor, who pollute the planet, and subsidize their businesses because they're owned by the government.

And how would the FairTax do any of that? It is only a different method of collecting revenue from our citizens and businesses!

Originally Posted by Judy

The national debt is the direct result of free trade policies, in fact, if you compare the deficit each year with the trade deficit of that year, they are virtually the same.

BULL!

Originally Posted by Judy

the government spent the money supporting Americans who lost their jobs because of deficits caused by free trade policies that were started in 1913 by the income tax.

The first five words of that are the fact: "The government spent the money"!

Originally Posted by Judy

The income tax act was passed in 1913 to cover the losses of tariff revenue because Congress reduced tariffs

So tariffs were a protection that was removed. The FairTax , according to you, would remove even more tariffs.

Originally Posted by Judy

when you cut income taxes trying to prop up the economy, you are left without the money supply operating within our borders due to imports that would have otherwise been supplied by domestic producers, leaving the government with more unemployed and under-empolyed Americans to support, fewer businesses and individuals paying income taxes, and the deficits are paid with borrowed money supply usually from the same countries who stole our companies and jobs to pay for it.

And a different tax method will not change that!

Originally Posted by Judy

When you don't understand a tax plan or the US economy, you probably shouldn't comment on it as if you do.

When you don't understand economy, you shouldn't endorse a new tax plan that you don't understand!

Originally Posted by Judy

The FairTax isn't about an individual's little loophole situation they've secured through the complex income tax, the FairTax is about an economic system that benefits every person and business in the United States.

The alleged "FairTax" is intentionally designed to create two new tax collecting agencies, the “Excise Tax Bureau” … and a “Sales Tax Bureau”, not to mention it keeps the “Bureau of Alcohol, Tobacco and Firearms” open for business.

In addition, the alleged FairTax keeps Congress' power to lay and collect taxes calculated from profits, gains, salaries and other incomes alive under Congress' power to lay and collect internal excise taxes.

The alleged FairTax, if adopted, would also put every American household on the public dole with the fairtax’s family consumption allowance. , which would then allow our communists, socialists and progressives in Congress to bribe an overwhelming segment of our nation’s population with a higher family consumption allowance during every election.

The socialist, progressive, communist “family consumption allowance” is a monthly entitlement check sent to every household to allow Americans, especially the poor and dependent, to purchase a rationed amount of tax free necessities of life, which would make voters with limited economic means extremely dependent upon the federal government for their monthly subsistence check!

Were we not warned in the Federalist Papers that control over a man’s subsistence amounts to a power over his will? And how many “poor working people” would have a vested interest in voting for progressives, socialists and communists who would promise to increase the family consumption entitlement during federal elections? Is this not how they stay in power, by offering government cheese?


The alleged FairTax would also make it an offense against the federal government for a person to exercise an inalienable right of mankind ___the right to sell the property they have in their own labor! For example, a baby sitter, lawn care worker, handyman, manicurists, carpenter, roofer, etc., who may want to work private jobs on weekends to meet his/her family’s expenses, must register with government in order to sell the property they have in their own labor, and they must collect a tax for the federal government, file sales tax returns 12 times a year under a penalty of perjury, keep any records Congress may dream up, in addition to being subject to audits which will be necessary for compliance purposes which is what the American people now complain of under existing federal taxation!


I could go on and on about the alleged FairTax, which is a clever scheme cooked up by our Washington Swamp Creatures to tighten the federal government's iron fist around the necks of the American people. But the bottom line is, real tax reform is found in the Fair Share Balanced Budget Amendment, which would actually accomplish real tax reform, and remove the iron fist of the federal government from the necks of the America people.



JWK

“Honest money and honest taxation, the Key to America’s future Prosperity“ ___ from “Prosperity Restored by the State Rate Tax Plan”, no longer in print.

Originally Posted by Judy

Just a note to anyone who is interested about the vehicle of the FairTax to resolve trade deficits.

There is nothing in THE TEXT OF H.R. 25 (the fairtax) to stop Congress from laying and collecting taxes which may be calculated from profits, gains, salaries, and other incomes.

We don’t need 134 pages of legal mumbo jumbo [H.R.25] to reform our federal tax system. We only need to adopt the Fair Share Balanced Budget Amendment which begins:


The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money




JWK