FB Friend wrote:
"On the surface, the Fair Tax seems, well 'fair'. But, it looks to me like there are too many parts to it that can be 'fine-tuned' by permanent bureaucrats, similar to the IRS Code. Like, a 'favored' tax rate for 'favored' businesses (which would be totally different between conservative and liberal administrations), and a 'punishing' tax rate for 'non-favored' businesses. I still prefer a flat tax, because once set, it is not as prone to manipulation. But like Thomas Zaleski says, getting the public to buy into a flat tax is a nightmare."
another friend wrote:
Another key factor: Fair Tax will lend itself to CORRUPTION on a grand scale. Certain favored activities/manufacturing/assembly will be EXEMPT from the tax. Such as: Green tech compaines, GM, Chrysler, etc. Think and you will agree Fair Tax is NOT fair and is down right dumb!
What say u to these arguments. I am really curious. Help
> Do you intend to rebut him? 1) The FairTax will have no favorite businesses. All business activity is tax free. Read and you will find no tax on Green, GM, Chrysler, etc. None of them have any tax liability anymore.2) The flat tax is exactly what we have now, of course it took the politicians a while to screw it up this badly. 3) How will the politicians change the FairTax to give favors? They can't hide any changes from the people like they can with the current code. 4) In what form will this corruption take place? The FairTax is designed to be transparent. The lobbyists will hate it where will they gain favors for their clients when the tax is shown on every retail receipt.
Just a few points for starting thought.
Thanks for getting back to me Cary,
Yes I do plan on a rebuttal. I have never seen anything in the fair tax that these guys were talking about. So maybe unintended consequences? Jason Lewis also alludes to some mysterious flaws, but can never get them to nail it down. I just want to make sure I am not missing something. R u on FB so I could get u in on the discussion? One of these guys claims to be a Milton Freedman trained economist. Maybe just designed to intimidate me I don't know. The anonymous internet you know. It could be areal good discussion if I knew more about economics than I do. Is Laffer a real good economist? He has supposedly also worked with him.
here is the link... https://www.facebook.com/DilemmaNEWS/posts/100840923335087
Hope it helps
Here is Thomas J. Zaleski's page too. https://www.facebook.com/profile.php?id=1162876483
I have to agree that Congress could tinker with the Fair Tax after inception. Think about the last downturn, and what they did to encourage buying. We had Cash for Clunkers and tax incentives for green cars. Would Congress reduce or eliminate the Fair Tax to encourage spending, increase product demand, and get people back to work? I can't see them not tinkering with it.
Favored items like food, clothing and health care? I understand the prebate is supposed to take care of it. But, we're talking politics, not economics. That will be the problem of any tax program that is undertaken.
That being said, it doesn't diminish the advantages of the Fair Tax.
Anything that has to do with human beings has the "tinker" factor involved.