Quote Originally Posted by Judy View Post
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.

Quote 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!

Quote 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.