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Tuesday, December 4, 2007
posted by My Klob | 1:20 PM | permalink
Mr. Huckabee says he would like to eliminate the Internal Revenue Service and replace the income Tax with the so-called Fair Tax, which would impose a national sales Tax on virtually everything we buy. But such a Tax would be a disaster for this country, especially for low- and middle-income Americans who spend a disproportionate portion of their earnings — in many cases all of it — on the necessities of life.
It would wreak untold havoc on the business community, driving down retail sales and creating an underground economy that would undermine America's productive marketplace — especially small businesses that produce most of the jobs in our country.
The Club for Growth was formed with one purpose: to promote economic growth by lowering the Tax rates, simplifying the Tax code and providing Tax incentives to expand business formation, savings, investment and economic opportunity. It has praised the Tax-cut proposals of Mitt Romney, Fred Thompson and other contenders for the Republican nomination.
But last week Mr. Huckabee labeled the respected Tax-cutting group "The Club for Greed," a charge that sounded more like the invective spewed from Al Gore, Howard Dean or socialist Bernie Sanders.
The Arkansas Republican is fond of bashing corporate CEOs and their salaries, thinks a higher minimum wage won't hurt entry-level job creation, and apparently doesn't mind slapping higher sales Taxes on the most vulnerable people in our economy.
The next president will face huge fiscal issues in 2009, such as rising entitlements that threaten to engulf the federal budget and what to do about President Bush's Tax cuts that are due to expire in 2010 — a demise that would raise Taxes by trillions of dollars.
That's when we will need strong, principled leadership to keep a likely Democratic Congress from sending income Taxes through the roof. It's something Iowa voters need to think deeply about in the days to come.
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I've been a tax accountant for ten years now... A national sales tax hurts people who have large savings. They've presumably already paid an income tax on the savings, now they get to pay a sales tax when they spend it? How is this "fair"?

While I agree that the Internal Revenue Code (tax laws) are another definition of Insanity, there is at least an attempt to have those who are more wealthy pay a larger percentage of their incomes than those who are less wealthy.

A national sales tax would be "blind" to people's income/wealth level, unless of course you introduce some sort of a back-end refund of the sales tax paid for those who don't make very much or don't have a lot of money. This back-end refund would require a form, of course, which would look an awful lot like an income tax return, which is, of course, Insanity.

Weren't we just here?

And who's going to audit the books of businesses paying the national sales tax into the Treasury? Are we just going to assume everyone will pay what they owe? Wouldn't the IRS still be necessary?

This is an extremely complicated subject which Huckabee is content to plug in a couple of minutes. Did he ever try to get it implemented in Arkansas? Why not consolidate property, income, and sales taxes into one giant sales tax. Wait, wouldn't that just push people to buy stuff across state lines (where they don't have to pay the large sales tax?).

He calls it simple (simple enough to get rid of the IRS) and fair. I say you can't have both... If it's simple, it won't be fair. If it's fair, it won't be simple.

Before you get all worked up about how unfair it is, PLEASE read more about the plan. There IS a Pre-bate, giving Everyone an amount of money (Key point: based on the number in the household) to cover the "Fair Tax" on all goods and services up to the Federal Poverty Level. So the poor are covered, and since used good are NOT taxed, AND they will keep all of the current Federal taxes that are currently deducted from their paycheck. So, the poor should be Much better off. There are too numerous ways to mention in this post that those with large amounts of savings will SAVE on Federal taxes in other ways that will not only equal, but in most cases be SAVE them money.
Also, don't forget that by eliminating all of the Federal taxes that the Fair Tax proposes to eliminate, will also reduce prices by what is expected to be a relatively close corresponding amount...due to the reduction in imbedded taxes that business pay in producing and bringing to market current products and services.
Also, the wealthy and large corporations will in many cases pay much more than they currently are, due to the elimination of "special" deductions for certain classes of political donors, etc.
One last thing, the Fair Tax isn't Mike Huckabees plan. It came about from a group of fed up, everday citizens who figured there had to be a better way. Since then it has been Researched, with numbers verified by world renowned economists and scholars. At last count there are over 75 leading economists and University Scholars who have signed on as fully supporting the Fair Tax plan.
Please look into the plan, legitimate questions are a great thing....and Usually have a perfectly reasonable answer. However, assumptions and innaccurate statements are not only inconsiderate, but also can end up making you look ignorant.

Also, no one has ever said there won't be a need for some kind of Taxing agency....Just NOT the IRS! There will no longer be a need for the Federal Government to know anything more about you than how many people live in your household. Also, businesses will still need accountants to help calculate business costs, profitability, etc. And accountants make far more money doing that than they do filling out Tax forms and calculating receipts for deductions, etc.

I'm lazy, Dennis. I didn't bother to go and look up the Fair Tax proposal before posting. It appears you are too, since you forgot to post a link to explain the Fair Tax.

What I know about the fair tax is what I've heard from Mike Huckabee and read in reports about Mike Huckabee being a proponent of it. If this is pretty much the only policy proposal he's got that I've heard (and it isn't even his own idea as you point out), he just might be lazy, too.

And nice try on the savings argument. You have so many arguments that you didn't even cite one of them? See my "laziness" comment up above. Look, I'm open to new ideas, but the idea that Congress would keep its hands off a "pre-bate" and leave it simple is too much bull for me to swallow. Congress complicates the tax code more and more every year. I don't see them stopping any time soon, unless we truly do get fed up and organized as citizens of this nation.

As for the "there will be a taxing agency, it just won't be the IRS" statement... When a taxing agency looks like the IRS, acts like the IRS, and quacks like the IRS... How long do you think it will take for people to start cheating on their "pre-bate" and for the new "taxing agency" to start enforcing?

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