UT College Republicans To Host FairTax Information Session

Toledo, OH, 4/19/09 -- On April 28, the University of Toledo College Republicans will be hosting an informational presentation on the proposed FairTax bill. A representative from the Ohio FairTax Association will discuss the issues and inefficiencies with the current
tax code and the positive solutions that the association feels the FairTax could provide. Admission to the event is free and will be held in the University's Student Union room 2591 beginning at 7:00 pm.

The UT College Republicans believe that to successfully fix and grow our economy, Americans must stay informed on new and innovative approaches to lessen the burden of government. By providing a forum by which citizens can learn about, discuss, and debate current proposals, Americans can play an active role providing positive solutions to fix
the current economic hardships we face. For more information, please contact the UT College Republicans at UToledoGOP at gmail.com.

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If you think that the "Fair Tax" (i.e. large, federal sales tax) will actually replace the federal income tax, you're delusional. Greenspan spoke often enough about mixing the two forms of taxation. And once we let the government impose YET ANOTHER TAX, we'll NEVER get rid of it.

Show me a bill that actually revokes the federal income tax in tandem with the imposition of the National Sales Tax, and I'll start to believe it.

I hope to attend. There's a chance I may be out of town, but I will go if I'm local.

How does the "fair" tax reconcile the chance that people will get double taxed? Everything I spend has already been taxed. So any kind of sales tax will be a double tax

Pink Slip

It really makes me wish I hadn't put all that money in to my Roth IRA over the years...

Of coarse it's my retired mom, who worked her entire life, who now pays little in tax, and lives off her 401k, SS and pension would be complete screwed, but then again, I’m guessing that’s the point.

It looks as though you two (Pink and Sensor) should attend. Judging from your posts it looks like you have some things to learn about the Fairtax.

If you can't attend, read the book by Congressman Linder and Neal Boortz.

My comments aren't meant to be a smart ass reply, but the Fairtax plan address those concerns. If you looked into deeper, I think you'd find your answers.

PS- I don't disagree with your Roth IRA point. No system is perfect, but this is much better than anything else out there.

My political leanings are nowhere near Sensor or Pink but I have to agree the "Fair Tax" isn't exactly that. I wish some Republicans would stop pushing it.

First, when you look at how much citizens would actually need to spend in order to make up the difference is doubtful, and that's with the wealthiest. (The wealthy didn't get that way by spending their money).

Secondly, it still would require a beaurocracy. We'd be trading one bad system for another. Doesn't sound like a deal to me.

I'm all for simplifying our tax code but this as it currently stands doesn't pass the sniff test.

MikeyA

The Fairtax is designed to be revenue-neutral; people wouldn't have to "spend more" to make up the difference. Wealthy people spend money; they have the toys to prove it. On top of that, the "before" and "after" cost wouldn't change the ultimate cost of product much. The "before" costs include layers of embedded taxes. The "after" removes those and adds the sales tax. In other words, they'll still be able to get their toys at approx the same price.

In terms of bureaucracy, it would put an end to the IRS as we know. It repeals the 16th Amendment. It also would also put an end to the spending of time, effort and money on tax preparation and compliance.

Additionally, the vast majority of states (45 states, I believe) already collect sales tax, so the mechanism is already in place.

Look at their website; I think it does a good job answering questions.

www.fairtax.org

Double taxation

Pink Slip

How so?

I've got money in the bank that's already been taxed. If I spend it, it gets taxed again?

Pink Slip

Pink, to be honest, I'm not sure of the answer. I thought there was a mechanism in the plan to address this. I didn't see anything on their site, though. If I attend, I'll ask that question. If I don't, I'll look at the book my next trip to the library.

Consider this, though. Current owners of tax-deferred vehicles, like a 401k, will not have to pay taxes upon withdrawal. Therefore, they benefit greatly.

No problem, I can look it up. Just wanted to get perspective from someone here if possible

Pink Slip

How is the FairTax revenue neutral?

http://www.fairtax.org/PDF/FairTax-Fundamentals_and_facts-070122.pdf

Consider a middle-aged couple with two children earning $20,000 per year compared to that same ouple earning $500,000 per year. In switching to the FairTax, the low-income couple’s FairTax rate is only 1.5 percent versus 11.0 percent under the current system. The high-income couple’s FairTax rate is 20.5 percent versus 35.6 percent under the current system. The low-income couple gets an 86 percent cut in their average remaining lifetime tax rate, whereas the high-income couple gets a 42 percent cut.

So everyone pays lower taxes, but the government collects the same amount?

What about the "Family Consumption Allowance" part of this? Where the US government sends every family/person a check every month! Talk about making people dependent on the government.

On the surface it looks like a good idea but the devil is in the details.

When you add in Educational non-tax and the FCA it becomes more confusing and less beneficial. Again just another bureaucracy but supporters want to talk about what it would cost to switch from one bureaucracy to another.

A new bureaucracy means a new computer system. A new computer system means more money and new bugs. New bugs mean even more money.

Hell by the time the thing gets going it's already cheaper to have kept it's predecessor and just tried to patch the holes.

MikeyA

Look I'm all for simplifying the tax code. I'll argue that all day.

But while the wealthy spend much of their money on toys it doesn't equal that as the lower income. The lower income need to spend 100% of their income most times because they can't or won't live within their means.

The wealthy can buy all their toys and still only spend 50% of their yearly income. And while it is more money the lower % throws it off.

While I am as fiscally conservative as many R's and D's out there who this is a big deal for the "Fair Tax" is just a bad system replacing another bad system. That doesn't seem like a deal to me.

I think even Pink would agree I'm to the far opposite of the political spectrum as he but we see eye to eye on this. If the Republicans choose this as their big issue then get ready for some futile races in the future.

MikeyA

Step one, REPEAL THE 16TH AMENDMENT

Sixteenth Amendment - Income Tax

Amendment Text | Annotations  

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration

http://caselaw.lp.findlaw.com/data/constitution/amendment16/

 

Step two, GET RID OF THE IRS AND THE THOUSANDS OF PAGES OF TAX LOOPHOLES, LAWS ETC. in the U.S. TAX CODE

http://www.fourmilab.ch/ustax/ustax.html

 

Step three, IMPLIMENT A FLAT 12% TAX ON ALL INCOME. No deductions, no redistribution, no loopholes.

THAT is fair. Everyone in every income level at every social status pays the same percentage of their income to the government. No more class envy and class warfare.

Read more here:

http://www.heritage.org/research/taxes/bg1866.cfm

http://www.freedomworks.org/issues/flat-tax 

Don't blame me,
I didn't vote for a
socialist.

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