Flat rate beats FairTax scam

By Stephen C. Eldridge from Cosby, Tenn. Today at 7:00 a.m.

In response to "Put taxing decision to consumers" published Jan. 20, I’d like to say I am a retired tax lawyer/CPA, with no financial interest in any tax system. For details, call 423-532-7337 or visit http://sceldridge.wix.com/sceldridge

FairTax is more of a wealth redistribution, and a financial scam.
The FairTax advertises that it’s more progressive (see http://bit.ly\1uym1pB). The prebate is advertised as merely repaying the poor for FairTax they pay, but would actually pay them far more than any FairTax they might pay *— they pay zero tax and receive a large tax welfare check, and give the working poor free Social Security and Medicare (seehttp://bit.ly/1BOlcZT).

The FairTax produces a 40 percent to 70 percent in-your-face retail sales tax that would spark a taxpayer rebellion and destroy our 70 percent retail-sales-sensitive economy. The 40 percent is the sum of 30 percent FairTax plus 10 percent state and local sales tax. The 70 percent is the rate needed at a sample 30 percent FairTax evasion rate (the FairTax incredibly assumes zero evasion, zero intentional reduction in spending, and zero conversion to used goods). The FairTax’s exemption for used goods may be a cruel hoax — it is virtually impossible to meet the FairTax’s requirements for that exemption.

In addition to that 40 to 70 percent tax, the FairTax contains several hidden taxes. FairTax’s 30 percent is really more than 42 percent; 12-plus percent is hidden by having state and federal governments paying FairTax — they must get that money from you. The FairTax causes the federal budget for Social Security to rise by 1) Social Security and all federal pension COLAs of almost 30 percent and by 2) fraudulent new benefits, which are "invited" by FairTax’s removal of the tax "penalty" for reporting Social Security wages (see bit.ly/10LLvEB).

The new IRS (the STAA) will be worse, more invasive, than today’s IRS if they decide to audit consumers, and we may well have to file an "Annual FairTax Summary" (see http://bit.ly/1xqIOTQ).

Far worse is that we may well wind up with both a new income tax and the FairTax. Congress would surely repeal the FairTax’s laughable Sunset Clause and the 16th Amendment will not be repealed any time soon — the large tax revenue shortfall would be all the excuse Congress needs to add a new income tax (see http://bit.ly\1vNxnq3.)

What we need is a flat income tax with no deductions, no exemptions, no credits and a 10 percent rate. Call your representatives in Congress and let them know this is what you want.

http://www.superiortelegram.com/lett...s-fairtax-scam