True Talk on Tax

True Talk on Tax will seek common sense and facts about taxes. The focus will be the sales pitch for the Fair Tax. The sales pitch for the Fair Tax is nothing but a marketing effort designed to motivate not inform. In a world where fairness is rare and income certainly not fair, how can taxes be fair? Isn't the meaning of the word 'fair' based a point of view and not based on hard facts? How can it be fair to tax a janitor the same way as a billionaire?

Name: Mike Parker
Location: Georgia

Wednesday, August 09, 2006

Kellie Weeks Again

LETTER IN GAINESVILLE TIMES

I have replied to Mike Parker's' false Fair Tax rhetoric before, so when he tried to rebut my position I had to just laugh. He really has no real concept of the Fair Tax. As I have said before, read the book.

Mr. Parker claims there will be "illegal tariffs on imported goods." Wrong. The consumer is taxed, not the importers, just as it is done now.

He also claims "if you are paying 23 percent income tax on $40,000 of income, you will pay $9,200." Wrong again. First of all, he assumes the person is spending his entire paycheck and not saving any money. You only pay the consumption tax; it is not an income tax on the things you purchase.

Secondly, there is a "prebate" for essential goods. The prebate is set at the poverty level, to keep it fair, since many spend all of their paycheck on necessary items. That number is estimated to be about $5,902, which takes the $9,200 figure Mr. Parker quoted down to $3,298, and that's only if the person spends every dime that he makes.

Now on to a letter by Wistar Harmon, who claimed the rich will fly out of the country to shop.You must be joking! Gas prices are so high that flying on a regular bases to purchase goods would hardly save any money. Plus you would still have to pay taxes in that country.

Mr. Harmon's other argument was that wages would go down; that is not true. More than likely, wages would go up. You see, when employers hire new workers, they must take in account the extra taxes they must pay as part of the cost of hiring. Once those taxes are eliminated, the employer will be able to afford to pay more.

I realize both these men will assume that employers will keep all the extra money, but that is where a free market steps in. Once a company offers higher wages, the ripple effect takes place and others will follow. Don't assume employers are "evil." Most want the best for their employees, not the worst, as these two men would have you believe.

Keep in mind most businesses are small, family-owned companies. They are not all Wal-Mart or Microsoft, so they have a personal relationship with their employees.

Please go to fairtax.org to get educated and get involved.

Kellie Weeks

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