Steve Gruber of America’s Voice News just interviewed Steve Hayes, CEO of FAIRtax. Since this is about the fourth or fifth time I’ve heard the Fair Tax discussed, it’s time to sound the fire alarm – five alarm FIRE!
What is the Fair Tax? It’s a consumption tax – aka sales tax. Before you jump for joy, understand this: It is privatization of the tax system. Yeah, you get rid of the IRS – but you get Amazon, Walmart and all of the other large corporations as the tax collector. Do you trust these dirtbags with your country? With the power to collect taxes that run the country, you are transferring the power of the government to the privatized tax collectors and because they have the money, they can withhold the money and that doesn’t even begin the discussion on the psychopathy of the tax as it pertains to its impact on the population.
In 2004, after the 1990’s dot.compost boom and bust; after 9-11; after a couple of years of the war in Afghanistan and Iraq; as jobs were leaving the country faster than jobs could be created and there were record bankruptcies, record foreclosures, record unemployment and government revenues were at their lowest point since 1950; as we were being invaded from the south through an unprotected border; as our professional job market was being flooded with H1-b’s from India, one of the most dishonest, psychopathic people I’ve ever heard, Representative John Linder of Georgia sponsored legislation for a national sales tax which is the same thing as a consumption tax. It is also a harmonized tax system with Canada’s Goods & Services Tax.
What I heard in that hearing was so heinous – so monstrous, that I recorded it and played it about 5 times (it’s a four hour hearing) to make sure that I understood every word that was spoken by everyone at the hearing so that I could write about it to warn everybody. Links for the original articles at the bottom.
Federal Revenue Options
Committee on the Budget, Jim Nussle (IA), Chairman
October 6, 2004
Hearing Transcript (Local pdf)
Fair Tax Legislation
H.R. 25, Fair Tax Act of 2005
Panel 1 Questions & Answers
The Income Tax
The Consumption Tax
From the Hearing – Panel 3 . . .
The Joint Tax Committee, the Brookings Institution, Citizens for Tax Justice, and the Institute on Taxation and Economic Policy have all stated that in order to keep Federal tax revenues constant, a 50 to 60 percent sales tax would be required. That is, a levy of $50 to $60 would be imposed on a $100 purchase.
The rate advertised in Linder’s bill was that the tax rate would be 23% inclusive. That was a mathematical deception. The real rate was 30%. The difference is in the way the rate was calculated: if I bought a shirt for $10 with $3.00 sales tax (30%), the total paid is $13. They then convert that to the 23 percent rate by taking the $13 and claiming that the right number to derive is what percentage of 13 is the total tax rate, and that number is 23 percent. But, in truth, the add-on to the price for the sales tax you would pay at the retail counter is 30 percent.