By Stephen C Eldridge
The “Fair Tax” is a Fraud – we need a 10% Tithe!
I am a retired tax lawyer/CPA, with no continuing financial benefit from ANY tax system. I can support every comment I make – for supporting details, call Stephen C. Eldridge tel. 423-532-7337
The so-called “Fair Tax” (“FT”) is a fraud. It is Karl Marx on steroids AND a Bernie Madoff financial scam.
In their own words, FT proudly advertises that it is MORE PROGRESSIVE (INCREASES WELFARE). The Prebate is advertised as merely repaying the poor for any FT they pay, but actually would pay them far more dollars than any FT dollars they might pay AND also gives the working poor free SS/Medi.
The FT hits us with a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion which would destroy our 70% retail-sales-sensitive economy. 40% = 30% FT + e.g., 10% State sales tax and 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion and ZERO intentional reduction in spending).
IN ADDITION to that 40-70% tax, the FT contains several HIDDEN TAXES. FT’s 30% rate is really 42+%; the 12+% is hidden by having fed + S/L govts paying FT – they must get that money from you. The initial 30% rate is 1-5% short and that, plus any other revenue shortfall, will have to be made up by raising more FT (or a NEW Income Tax). The fed budget for SS will rise because of the FT – SS COLA of almost 30%, fraudulent new SS benefits, and more FT (or a NEW Income Tax) will be required to fund these.
The NEW IRS will be far worse, far more invasive than today’s IRS. We may well have to file an “Annual FT Summary.”
We may well wind up with BOTH a NEW Income Tax AND the FT.
What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate, with business income taxed to shareholders on a very simple basis (i.e., no corporate income tax).
Call your representatives in Congress and let them know that this is what you want.