Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

Government being taxed

Im fairly new here but I've read Boortz's book and I've done a fair amount of research and I'm a big supportor of the Fair tax.

My question is from what I've read on some of the critics sites, the fair tax taxes governments and those taxes are being included in the revenue calculation. That technically would be false because the Fed gov would be taxing itself so that should NOT be considered income to the government.

Can anyone clear this up?

Also, Im wondering how many people will go to Canada and Mexico to buy a car or other large purchases to eliminate paying the tax.

Again, I'm 110% for the FT, I'm just throwing out some issues.

Thanks,

Phil

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Permalink Reply by cary henderson on September 26, 2010 at 9:53pm

> Not only that, try to register a vehicle on which the sales tax has not been paid in the registering jurisdiction, it isn't going to happen.

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Permalink Reply by Mark Schaff on September 26, 2010 at 7:18pm

Phil, You are actually not stating it correctly. The Government will pay taxes on any purchases that is not related to doing business and selling a product for consumer use. They will be treated as any other person or business purschasing products. Yes, They will be funding themselves and that is the intention.
Think of it this way, does a person work for the government does he pay himself?
you ask that question the the person working for the govenment you may see the lights go on, as I saw when I asked that question to a person working for the FAA.

Regarding people going over the border to purchase something, it should not happen since the imbedded price on the vehicles should bring the price of the car down.

Hope this helps!

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Permalink Reply by Phil Tuttobene on September 27, 2010 at 5:38pm

Hi Mark,
I have also done more research...
The Fair Tax taxes ALL imports so if you were to buy a car outside the USA you would be forced to pay the 23% tax on the item as it entered the country.
So I answered my own question. Funny what a little research will do for you. :)

Thanks,
Phil