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

Infrequently Asked Questions --- Thought Provoking Ones.

I just returned from CPAC and waspresently surprised by a few of the questions asked by some people. Those questions were from interested people asking thought provoking questions. We will be able to bounce these questions off each other. There were a number of individuals who were convinced the FairTax had some problems before they talked with us, but left converted to supporting the FairTax!

If you have experienced one of these questions, please post the question and also your response to them. Others may suggest additional comments that should be included. This way when the question arises in another area of the Nation, our advocates will be able to respond easily.

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Permalink Reply by chiefcook on February 14, 2011 at 6:30pm

Question: I am a former legislator. Everyone knows that when someone says a bill is “revenue neutral” that it will raise taxes. What makes you think the FairTax will be any different?

Answer:

First; the FairTax is a bill that changes the base of the current tax system from income/earnings to a tax system based upon consumption. It does not have any effect on the spending side of government. While the economists have calculated the rate to be revenue neutral at the time of implementation, some economists project the GDP to increase up to 10% in the first year, this could mean that more revenue will be produced in that time.

Second; there is over $22 million worth of research by private economists from many universities and think tanks. They even took the proposal to focus groups of ordinary individuals to get their input.

Third; the bills you are talking about were all compiled by politicians inside the beltway. There was no input by anyone inside the beltway. Some politicians do not care for the bill since they did not have any input to protect their desires.