Fair Tax? No thanks

 By Suzanne Eovaldi, staff writer

 When my financial advisor gave me a lot of caveats about the new Fair Tax surfacing in Congress, what I really heard him saying was, “You can’t trust government.”   The unintended consequences of the proposed Fair Tax are pause for alarm because “when they sell a Fair Tax, they don’t tell you about other taxes” that will conveniently remain on the books. 

“In theory if the government says they’ll take away all other taxes, do they?”

The Fair Tax is a misnomer in Europe.  The income tax was not abolished when they added a VAT value added tax or Fair Tax.  The problem is, they are suffocating the average European citizen.  A United Kingdom VAT of 17.5% on top of a 50% income tax totals a 67.5% fed to the amorphous blob; in France: VAT 19.6%, income tax 40%, total 59.6%; Greece:  income tax 40%, VAT 25%, total tax 65%; Spain: VAT 16%, income tax 45%. In Sweden a 25% VAT plus a 55% income tax results in an eye popping 80% tax individuals feed to the government wow!  Denmark’s 83% is even worse!

 ”The United States is heading right down the same path,” my advisor tells me.  Initially our current administration looks to propose a minuscule amount of only 1% or 2%, just like Europe started out imposing.  Our 14 trillion dollar debt load is not sustainable, but he stresses VAT economies are deeply mired in gargantuan debt loads as well.

 The American notion of hard work and perseverance enables anyone to get ahead here.  “Do you think that can ever happen with tax rates between 60% to 80%?” he asks.       What would our lives be like with the European model of Obama’s redistribution of wealth? 

Consider never being able to buy a home or a car or send your children to college without government controlled agendas and indoctrination.  We’ll be riding bikes and living in small apartments with extended families. The senior financial executive, who is touting gold as the answer, is saying that monetizing our debt is no longer done by printing money, but rather just by moving computer generated “money” from Bernanke’s Federal Reserve into the columns of foreign and domestic banks.  The resulting Texas two step allows the banks to buy our Treasury notes at a 3% gain which our children and grandchildren will have to pay back in 10 years!  When and how do we stop this madness?  My advisor reveals that the Yuan – dollar pressure this past week now could result in an IMF currency basket with worldwide drawing rights, thus pushing America down, China up.

Look, at my age, 75, a lot of this won’t matter unless the Obama death panels take me out sooner rather than later.  But what do we leave our children, or our precious grandchildren?  Put down your golf clubs, mah-jongg tiles, give up some early bird diners, pull up your elastic waistbands, and as Florida Governor Rick Scott says, “Let’s Get To Work.”

 Use this link to contact your Congressional Representative:

https://writerep.house.gov/writerep/welcome.shtml

SOURCES:    If you want to talk to my financial person, email me using the comment feature below.    Also see Money Magazine’s articles on inflation and Harry Schultz’s Last Testament by Peter Brimelow in Market Watch, Jan.20, 2011.     

Lord Rees Hoog, former editor of The Times of London:  ”Governments lie, bankers lie, even auditors sometimes lie.  Gold tells the truth.”

For an it would be so funny if it weren’t so true moment, go to http://www.thedailyshow.com/watch/tue-december–7-2010/the-big-bank-theory

This day in history January 23

1941: Faux hero Charles Lindbergh testifies before Congress and recommends the United States negotiate a neutrality pact with Hitler.  

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9 thoughts on “Fair Tax? No thanks”

  1. The Fair Tax as introduced by former Rep. John Linder is a complete replacement of income tax and other taxes. It is not a VAT tax added to existing taxes.

    Writing about VAT and suggesting that is the Fair Tax is either is purposely misleading, or totally uninformed.

    1. Larry, I was going to say something similar, because they are talking "apples & oranges", but you made the point more eloquently. Thanks

    2. It's difficult to believe someone would publish an article about a subject they are so thoroughly confused about. The FairTax is not a VAT. The FairTax must be passed before repeal of the 16th Amendment so the government has a source of revenue. The FairTax bill states that the 16th Amendment must be repealed within 5 years or the FairTax is sun-settted, and we go back to the income tax.

  2. Apparently the writer has not bothered to read any the voluminous documentation of the FAIR Tax.

    The Fair Tax has nothing in common with a VAT. The Fair Tax is more like a national sales tax that replaces all other federal taxes (personal and corporate income taxes, capital gains, social security, etc.). And, unlike a VAT, the Fair Tax is visible and above board, right there on the receipt.

  3. The Fair Tax is not VAT.

    The Fair Tax shouldn't be implemented until the Income Tax is removed from the Constitution.

    Given no Income Tax, The Fair Tax is a Good Thing.

  4. Folks, the author does not understand the Fair Tax or the plan for its implementation. Neal Boortz wrote the definitive book – he gets none of the profits from sales. First, the FT enactment is simultaneous with the repeal of the 17th amendment authorizing the income tax. It would be the ONLY federal tax on anything! The earlier commenter is right: either the author is ignorant or she is trying to mislead for her own purposes.

  5. Sorry but I forgot to say that the FairTax, H. R. 25 – http://www.thomas.gov , REPLACES the present BROKEN TAX SYSTEM.
    Also April 15th will be just another Spring Day to enjoy instead of almost three months of agrivation (Jan – Mar).
    Citizen won't have to file income taxes on April 15th, again when H. R. 25 and H. J. R. 16 are passed.

  6. For Muleskinner, Coach and Ms. Eovaldi The FairTax Act, HR.25/S.296 as written and by default, eliminates funding for the IRS as it exists today. Additionally, HJR.16 is the accompanying legislation that is actually the repeal process for the 16th amendment, not the 17th. When the FairTax (FT) is passed, we will have seven years for ratification by two thirds of the states. Should ratification not be accomplished, there is a sunset rule in the legislation to revert back to the income tax.

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