Fair Tax Nation

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

The Following is the response I recieved from Eric Wargotz who is running for the MD US senate seat. He is stating that the tax is really 30%. I know there is a good response on the Fairtax.org site but can not find it. Can some point me in the right direction.

Mark,

Forgive me but I thought I wrote you regarding this? I respond to all emails received. I would have to go back through hundreds to find the one i generated. I am very good about getting back to folks. Again, my apologies if something got lost along the way...I just don't know.

In any case, I have been advocating for a shift from tax on production to tax approach based on consumption, of which the "Fair tax" is one approach.

I do thank you for your links provided earlier and the information you provided. It was very helpful in getting up to speed on the "FairTax" movement.

I always research both sides of an issue (or all sides, as some would say) I also found this information provocative:

from: http://moorethoughts.com/2007/12/30/more-problems-with-the-fair-tax/


"1. Prices and wages can be sticky. The implementation of the 22% (or 23%, or 30% – see below) sales tax will be immediately felt in an inflationary way, even though, from a balance sheet perspective, the elimination of the income tax should result in an eventual wash. In the meantime, until wages fall and reach the new equalibrium of the post-income tax world, we have a significant problem.

2. There’s no guarantee the federal reserve can manage the money supply sufficiently to ward off the deleterious effects noted above.

3. The actual Fair Tax rate is more like 30%, not 23%. Bartlett notes the discrepancy in salesmanship this way

Unfortunately, the Fair Tax rate is not really 23%. It’s actually 30% when thought about the same way we think of state sales taxes. The 23% figure is what is known as the tax-inclusive rate; the 30% rate is called the tax-exclusive rate. Think of the difference this way: You go to the store now and buy something for $1.00. The FairTax adds 30 percent for a total price of $1.30. Since the 30-cent tax is 23% of $1.30, this is where the 23 percent figure comes from.

It’s in the details, but you never hear about. The new, revised sales tax rate is now at 31.27%.

4. The inclusion of state and local governments as part of the tax base is deceptive. Any increase in the costs to local governments will necessarily be borne by the tax base under their respective jurisdictions. This means, on average an average increase in local sales taxes by 80%. If you take the governments out of the tax base, the actual rate of the national Fair Tax increases to absurd levels. Further, the rebate portion of the plan is accounted for as an expansion of the tax base, not government spending, which it is."


There are so many articles and research pro and con the FairTax that I know you might agree the matter can be quite confusing unless viewed in a vacuum.

Please note that i do absolutely commit to a revision of our taxing structure to shift it from one of production taxing to consumption taxing.

I believe we both can agree on that basic underpinning of tax reform.

Sincerely,

Eric



--- On Tue, 11/3/09, Mark wrote:


From: Mark
Subject: Fwd: Frederick GOP Club Meeting The FairTAX (HR25/S 296)
To: eric@wargotzforussenate.org
Date: Tuesday, November 3, 2009, 9:41 PM


Mr. Wargotz,



I have become very disappointed with the lack of response from you. I had taken you at your word that you would look into the FairTax and get back to me with you thoughts. I had even provided basic research for you to review.



I understand that you are inundated with email and work to do for your election. I do expect some response as you stated at the GOP meeting. This is a major issue to be brought forward and we need to get The FairTax passed to get this country growing again and getting jobs and companies back to the US .

Enclosed please find the the Bill and material expaining the FairTAX.(HR25/S 296)

Here is a URL with Mr Mike Huckabee explaining the FairTAX

http://www.youtube.com/watch?v=hq84hO_CFlI



Thank you for you consideration,





Mark Schaff



Support the Fairtax H.R 25 and S. 296
www.fairtax.org

www.fairtaxnation.com



9455 Dunraven St

Frederick MD 21704

301 874 8156

----- Forwarded Message -----
From: "Mark"
To: eric@wargotzforussenate.or g
Sent: Sunday, October 11, 2009 5:34:01 PM GMT -05:00 US/Canada Eastern
Subject: Frederick GOP Club Meeting



Eric,



I would like thank you for coming to the Frederick GOP Club Meeting on Wedensday night and meeting with us.

It was a pleasure chatting with you after the meeting.



I just wanted to follow up and let you know how much the The FairTax (S.296 & HR 25) would benifit the UNited States and

its citizens.



S.296 FairTax is a 23 percent consumption tax on new purchases and service. Unlike the current system The Fair Tax moves the tax burden from the workforce (productivity) to the consumer—giving them control over how much they are taxed.


The Fair Tax system would eliminate the IRS and replace every current federal tax—personal income tax, business income tax, the death tax, the investment tax and Social Security/FICA taxes included with a simple, Fair Tax. In other words, you would keep 100 percent of your paycheck and then pay ONE tax, the Fair Tax. Your income, savings and investments would never be taxed. And Congress would never again be able to hide tax increases in a convoluted system and manipulate the tax code for political gain.

The Fair Tax would completely fund the federal government, Social Security and Medicare





H..R.25 Fairtax will repeal all payroll taxes, including income tax, individual income taxes as well self-employment taxes, corporate income taxes, and Estate and gift taxes. Under the FairTax, goods and services purchased for business purposes, or in business-to business transactions, would not be taxed.



The FairTax also establishes a rebate for families to offset any taxes on spending up to the federal poverty level, as determined by the U.S. Health and Human Services Department. This rebate - mailed monthly in advance to every household - ensures that no American is taxed on the purchase of essential goods and services.

Because the FairTax is collected at the retail check-out when consumers purchase goods services, it treats domestically-produced goods and foreign-produced equally. Yet, because it will use free market forces to drive out the embedded cost of the income tax system and compliance costs, U.S. exports will become fiercely competitive in the global economy. In addition, because both domestic and foreign businesses could invest in the United States without any taxes on capital or labor, the American economy would be the biggest magnet for investment monies in the world.



Also with the Billions of dollars ( 13to 20 Billion Dollars) housed in banks outside this country for tax reasons taking resources and productivity. If the FairTax was passed today there be 2 to 6 trillion brought back into the country and put to work creating new businesses and jobs.



The best part of the bill is that the American citizen will not have to worry about IRS coming after them for taxes and on April 15th they can just go about enjoying a nice spring day!



Both my wife and I are FairTax Supporters and would like to express that to you should support The FairTax for the benefit of every American Citizen. The FairTax bill rid us of the existing regressive tax system and replaces it with non-regressive tax system with a National consumption tax of 23%. This tax will benefit all American citizens by allowing them to receive 100% percent of their paycheck.



I have included serveral easy to read documents to better understand what The FairTax would do for this coutry.



Also here is a URL for short video from You Tube where Mike Huckabee explains the FairTax and why it should be supported



More information about the FairTax can be found thriugh Americans for Fair Taxation at www.fairtax.org or at 1-800-FAIRTAX (800-324-7829).




Thanks again for meeting with us. Feel free to contact me with any questions..



Mark and Cyndi Schaff




Support the Fairtax H.R 25 and S. 296
www.fairtax.org

www.fairtaxnation.com

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Replies to This Discussion

I never knew our current Federal Income Tax system was based on production. I always thought the current system penalized productivity.

With implementation of the Fair Tax productivity will go up and productivity will no longer be penalized. A worker can work as many jobs as he can with out being penalized. The worker will only be taxed on what is spent on new retail products and services.

The Fair Tax would generate jobs jobs jobs jobs and more jobs. I would really look forward to having The Fair Tax implemented.

What I am concerned about is all the legislation Congress wants to pass that is taxed and based on people with higher incomes. Its as if our government is attempting to put a lock on the current Federal Income Tax code even if it is full of fraud, loop holes 66,000 plus pages of regulation, waste, people control and what ever other problems it causes.

The Fair Tax would be a win win for the people, businesses, corporations, governments, and the economy. The Congressional leaders that are against it appear to be beholden to someone, some group or they just don't know enough about the Fair Tax H.R.25 to make the choice.
Mark,
You need to respond to Mr. Wargotz that the FairTax has had over $20 million in privately funded research and is as fair and simple as any taxing scheme can be. If he can come up with a simpler and fairer tax based on consumption, please lay it out to the people. We would all be interested in hearing about it. The "devil is in the details".
'I realize some among the FairTaxers are using this issue as a "ltmus test" for Federal candidates..'

The same can be said for the majority of America with candidates now. We're sick of the pussy footing around the issues. Yes or no, simple as that!!
Do you support the FairTax?

'frankly I do support a more simplistic approach such as sales tax shift without all the other complexities in the bills. I like to keep things simple when possible and it seems to me that the simple approach in shifting what or how we are taxed makes most sense.'

You support tax reform and switching to consumption, which the FairTax would bring....so...why not actively support it in your campaign and get the support of many others who believe the same thing?
He is for making it simple, so we can expect Mr. Wargotz to not vote for any 'tinkerings' in the bill and just to leave it as is...fair and simple.

I hope Mr. Wargotz reads these comments and understands that politics as usual is not going to fly in the coming elections.
Yes or No.....nothing else!!

Mr. Wargotz...do YOU support THE FairTax?!?!?!? YES OR NO?!?!?!?
That is all we ask.
Mark,

The key point from Sean's example is the dollar amount collected will be the same regardless if you quote the tax inclusive rate(23%) or the tax exclusive rate(30%).
Only difference....30% scares people while 23% doesn't scare as many people.

The case however is the rate is not just made up, that is the cost of government.
If you think it's too high......GREAT, so do we.
But the current system ain't doing anything about it!!

FairTax would open the eyes of everyone as to its cost and thus address the problem head on, with 300+ million people.
Today I received and email from the maryland republican canidate and asked me to send this along. I have asked to consider being cosponer if he is elected. Let's see what he says.


From: "wargotz4USSenate"
To: "mark schaff"
Sent: Wednesday, February 3, 2010 11:05:43 AM GMT -05:00 US/Canada Eastern
Subject: Dear Mark,

I hope you and your family have been well.

I wish to inform you that after studying the bills very carefully and upon further discussion with others, I am now quite comfortable in supporting the "Fair Tax". I thank you and your colleagues for your patience.

Sincerely,

Eric
Hmmm...

I just keep wanting to say,

"Hey Dude, you seem to be to stupid to be a congressman. OK, who's next."

But then, that's just how I handle such things.
Well you know it takes some people longer and we still need to push through it.
Eric did respond to me and said that he would be a cosponser if elected. I told him that FairTax would be at CPAC and to stop by the booth if he is there.

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