Saturday, December 18, 2004

It's voluntary, he says

Neal Boortz gets excited about the Fair (consumption) Tax.

It is amazing how many people don't like the idea because they don't think that the rich will be paying enough in taxes. It doesn't matter that paying taxes will be voluntary under the Fair Tax plan. It doesn't matter that nobody pays the retail sales tax on the basic necessities of life. It doesn't matter that lower income Americans will virtually get a free ride when their entire federal tax liability disappears, including Social Security and Medicare taxes.

Hmm. I'd much prefer a flat tax. The Fair Tax really would punish the poor (and it's not often I say that), who spend the bulk of their incomes on consumption. Some people would have more money to spend, but what about those with no accumulated wealth? The prices would be steeper for them, too. Maybe there's some economic argument I'm missing here.

1 comment:

Adam Scavone said...

Stephen Moore (I think(?)) had a letter published in the WSJ a while back pushing a "wealth tax"...add up everything you're worth, pay X% and put it in an envelope. I suppose that's a flat tax, too - I haven't thought it through - just bringin' it up. Re: Boortz's comment, "It doesn't matter that nobody pays the retail sales tax on the basic necessities of life,"...does he walk around naked, does he expect everyone else to walk around naked, are clothes a "luxury" item or has he not been shopping for clothes lately? And he calls this a "voluntary" tax? wtf? - "You don't have to pay it!! You can always choose not to purchase anything!" Could I order everything I ever wanted from offshore businesses and never pay taxes on it (as long as it isn't steel or shrimp or some other bullshit that ol' fair-weather free trader GWB has raised tariffs on)? something's fishy. for what it's worth, i did some research on that shrimp tariff when bush announced it...I entered "shrimp" for my search in google news...a few hits came up for the new tariffs, and the next item was how shrimpers off of the Gulf Coast had gotten caught trolling for shrimp without using a "turtle excluder" and got thousands of dollars worth of fines....bush's argument is asian countries are "dumping" shrimp at "below-market prices" (the definition of dumping, designed to keep countries from subsidizing industries until they put businesses in other countries out of business and move in and jack up the prices)...our shrimpers troll the gulf coast for shrimp with their "turtle excluders" while the asians are raising shrimp in big ol' ponds that they built for raising shrimp, saving a whole helluva lot of time and energy, and getting us our shrimp quicker and cheaper. well, at least we have GWB to protect us from inexpensive shrimp.