The "Fair Tax" Truth

The “Fair Tax” really should be called the “Fraudulently Fair Tax”

A little background..”Fair Tax” has been promoted by a “third tier talk show host” (Neal Boorts) in a series of books…that the originator of this tax proposal (the former chairman of the Harvard Economics Department, Dr. Dale Jorgenson)has stated, that in the form and method Boorts uses..IT WILL NOT WORK.

Dirty Little Lie#1
The “Fair Tax” would NOT REPLACE ANY FEDERAL TAX PRESENTLY IN PLACE..BUT WOULD BE IN ADDITION TO THE AFORMENTIONED TAXES.

Dirty Little Lie#2
The Math used in Mr Boorts’ book is, at best, flawed..(if not outright lies)
If you take the figures presented in the books, you get minimum tax of at least 30% not the 23% as represented. (example: 1.7 +1.3=3.0 NOT 2.3)

Dirty Little Lie#3
For the “Fair Tax” to replace our present system of Federal Income Taxation, it would require the Federal Retail Sales Tax (”Fair Tax”) to be at a rate of AT LEAST 44% on any and all purchases (no excemption for Food,Clothing or Housing)

Dirty Little Lie#4
Keep in mind that all existing taxes on the State and Local would not only remain in place, but, they,themselves would be subject to “Fair Tax” if collected in the form of “Fees” like Driver License Fees.

Bottom line..
If you think $4.00 a gallon Milk is expensive, try adding a 44% tax ($5.76 w/tax)

http://www.mises.org/story/2327#