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Kasz216 said:
Eomund said:
Now that is an honest concern which I also have. The only way I can answer that is to say that removing the income tax (along with corporate, capital gains, etc.) will also remove the disincentive to work. There will always be lazy bums leeching off the system, but that isn't an issue the FairTax addresses and therefore isn't an argument the FairTax should be attacked on.

This is a seperate issue of Welfare Reform. I want welfare reform to wean people off of government assistance. This is another debate, but as a quick aside since the "Great Society" and the "War on Poverty" under Johnson, the percentage of poor to our population has remained the same. We haven't solved it after throwing about $6 trillion at it. Before those programs the percentage would fluctuate with the economy.

It creates an even bigger welfare problem however, that's how it addresses it. As everyone who meets the requirments have a right to the check, and none of the requirmenets for the prebate is that one of your family members work or have worked in the past. The government is more or less providing everyone with food, water and other life essentials by taking money more so from those who spend more.

Also, there is a secondary problem in that to sign up for the prebate tax you need an address. Many hardworking people live out of motels in the winter months and their cars in the summer months. Many of these people at or below the poverty level would not be eligable for the prebate

Get rid of the address requirement and EVERYONE will sign up for the prebate, including the homeless and the like, which while great would once again lead to that "extending welfare" thing as the amount of money that would go to them each month as a prebate would likely be way more then our government spends per person on the homeless now when you consider howmuch more it would cost in infrastructure and that we'd likely keep a number of our welfare and other such programs.. Which would seem to indicate costs would be much much higher then expected.


 Alright as an extra incentive lets add Social Security and Welfare Reform to the FairTax bill. Lets also add a "Thrifty Congress" bill aka Balanced Budget bill, whereby the Government cannot spend more than what was taken in the previous year, or the expected revenue in the current year.

Would this be acceptable now? I want all these to pass, but I don't know if we could create a bill that did all of this at once and still pass the House and Senate.



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Final-Fan said:

Eomund said:
Senseinobaka was using logic and reason to explain his point on taxes. You took his argument to an extreme that was never intended or even remotely implied whether implicitly or explicitly.

senseinobaka said:
So here's an example of how taxes would be levied in a fair system. Lets say that the population is 2 people and the cost for government is $5000 per year. Thats means Person A pays his share of $2500 and person B pays his share of $2500. That is fair. Wheter person A works harder and earns more money doent matter. It is unfair to say that person A would have to pay $4500 because he makes more money [...]

Final-Fan said:
So your idea of a "flat tax" would be "every U.S. citizen owes Uncle Sam $10,000 per year". Doesn't matter if you work like a dog ten hours a day and only make minimum wage. Doesn't matter if you're a trust fund baby. [...]

HIS EXACT WORDS were to say that "a fair system" would be a flat fee applied 'equally' to all citizens. That is exactly the system that I derided. In what way did I misrepresent his argument? If he meant that it would be fair in Fantasyland but totally bad for the United States, then ... okay.
Eomund said:
Stop applying your own views to ours, as they will never mix.

I only applied logic to his views, but the two certainly did not mix, judging by his response.

As for your views, I had thought you were for the rich paying more because they had more money, but not more relative to their own wealth than the less wealthy do relative to theirs. This is very different from senseinobaka's "flat fee" ideal. Perhaps I had you confused with shams or one of the others. Could you clarify your position here?

I agree with senseinobaka's flat fee ideal. However, I understand this won't be realized in the US. I believe others have said as much. So there should be a flat rate at which people are taxed. The FairTax is the best way to do this in my opinion, especially since it taxes a person's wealth, not earnings.

quote]Eomund said:
Senseinobaka never said such things Final. You are, as you said, "applying your stated idea of what a "fair" tax system would be and me applying it to a real-world model." Sensei never said that we should, "tax people based on how much of the government's services they use." What he said was that since everyone uses government services they should be taxed equally. He was basically saying that if you paid for something, you should have access to it whenever you want, but that doesn't mean that you are going to use it.[/quote]
You're right that he didn't make the "tax according to use of gov't services" argument. He said,

"I am saying that fair would be to give an equal piece to everyone. Everyone uses government services, and owes the government for thier services. And every person should only pay up to what their part of the pie is and no more."
and I misinterpreted it.

Nevertheless, he undeniably did make the flat-fee argument, which is nearly as laughable. That is the argument that I applied to the model of the U.S.

He was using a reasonable argument. He did not say to apply the fee to "everyone." He even used an example where the two people paid taxes from their earnings. I happen to agree with him, but even so realize that can never be the case.

Eomund said:
Socialism, fascism, and communism are all based on one philosophy, Marxism. Marx said this, "From each, according to his ability; to each, according to his need," did he not? This is what you seem to be saying as well.

Let me point to another person who said something very similar to this, Hillary Clinton. This is a quote from a speech she made to some donors in 2004, "Many of you are well enough off that the tax cuts may have helped you. We're saying that for America to get back on track, we're probably going to cut that short and not give it to you. We're going to take things away from you on behalf of the common good." Obama has said similar things as well.

I could pick a statement Hitler or Stalin or somebody said that your views could be shoehorned into fitting. Would that mean I could compare your views to theirs? I expected better from you, Eomund, I really did.

I have also expected better of you, yet been let down recently. Let's return to civility.

Karl Marx said:
--1. Abolition of property in land and application of all rents of land to public purposes.
--2. A heavy progressive or graduated income tax.
--3. Abolition of all rights of inheritance.
--4. Confiscation of the property of all emigrants and rebels.
--5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.
--6. Centralization of the means of communication and transport in the hands of the state.
--7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.
--8. Equal obligation of all to work. Establishment of industrial armies, especially for agriculture.
--9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
--10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education with industrial production, etc.

First of all, I haven't been arguing at all for a heavily progressive tax system, but I'll let that slide.

It certainly sounds like you are promoting a heavily progressive tax system. I would argue this current system is very progressive (on both individuals and businesses) and hampers growth of the economy and therefore better lives for the people participating in the economy.

OH WOW I AGREE WITH ONE THING KARL MARX SAID!!1!eleven

Make that two or three, because I'm in favor of public education and putting a stop to 1800s-style child labor (forced labor, really) in factories. Are those bad ideas too?

Federal government run education is a bad thing. They hardly teach kids math and science. So yes I would say that is a bad idea for several reasons. For what I want to happen with the education system see my posts with Kasz.

A short sampling of the others:
1. Abolition of private property? Um, no.
3. Abolition of inheritances? As much as you may think that the estate tax is this, it's not. So no.
4. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly? As abusive as I think credit card companies are, the thought of supporting this has never entered my head.
Et cetera.

I merely brought those 10 tenets up to prove my point about the income tax and to give it context.

Eomund said:
Note point number 2 (bolded for easy recognition). That is what we are currently under. This is anti-capitalistic rhetoric, and you are supporting it.

Stopping child labor is anticapitalistic as well. Don't chain the free market!

Stopping child labor is not anticapitalistic, it is civilized. Child labor is more slave labor than paid labor. Kids hardly get paid properly and can't do many of the jobs older people can.

Eomund said:
Let me outline a brief of what Conservatives believe about "the poor and less fortunate".
etc. etc. [edit: You know what? Never mind my response to all of the rest of this. I stand by what I said, but I was just opening up new avenues of disputation. Only one thing will I keep: Don't call people Marxists and call them out for agreeing with stuff from the Communist Manifesto unless you want to tie them to communism.]


 I will not call you a Marxist again, at least in this thread. But lets move on. Sorry to offend you.

I doubt this will help convince you but FairTax.org has 10 reasons why Democrats should be for the FairTax.

Top Ten Reasons Why Democrats Should Strongly Support the FairTax 



I want my WHOLE paycheck! I support the Fair Tax!

http://www.fairtax.org/

"Lets also add a "Thrifty Congress" bill aka Balanced Budget bill, whereby the Government cannot spend more than what was taken in the previous year, or the expected revenue in the current year."

This rule would be pretty similar to PAYGO. And it's another thing we agree on, except I believe there should be a provision for emergencies.



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"I will not call you a Marxist again, at least in this thread. But lets move on. Sorry to offend you. "

Fair enough, and agreed.



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I agree with the emergency provision, lets add a war-time exemption too. Perhaps only during DECLARED war though. I simply did not mention it.



I want my WHOLE paycheck! I support the Fair Tax!

http://www.fairtax.org/

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Eomund said:
I agree with the emergency provision, lets add a war-time exemption too. Perhaps only during DECLARED war though. I simply did not mention it.

Wars are emergencies in my book.   And I like the "declared war" part (even though I do have doubts/reservations), because maybe that would shift the power to wage war back to Congress where it damn well belongs. 


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This thread needs a reboot. I can't figure out who's for what (except Eomund is for the FairTax -- I got that much). A lot of the discussion seems to focus on how the FairTax would shift the tax burden as compared to the Income Tax. I'm not sure how important that really is as far as the big picture is concerned.



I doubt this will help convince you but FairTax.org has 10 reasons why Democrats should be for the FairTax.

Top Ten Reasons Why Democrats Should Strongly Support the FairTax

Reason 1: The FairTax meets the entire Democratic tax agenda, starting with progressivity.
This has been in dispute since almost the beginning of the thread. Let's go for understatement and say "I disagree."

Reason 2: The FairTax eliminates the highly regressive tax on wages of the working poor and middle class.
Yes, it does.

Reason 3: The FairTax is the only plan that completely untaxes the poor.
"The FairTax removes these hidden taxes, eliminates the payroll tax, and holds all taxpayers harmless against any taxes on essentials such as food, clothing, and shelter."
That's a very misleading way of saying (as we both know) they're basically going to send out welfare checks to every single taxpayer. (To those with a mailing address, anyway, as others have pointed out; not very nice to migrant workers.) Not knowing the truth, I would expect "holding me harmless" for taxes on food, shelter, and clothing to mean no taxes on them.

Reason 4: The FairTax stops the export of jobs.
I don't happen to have a reason this wouldn't happen off the top of my head, but neither do I concede that it would be true.

Reason 5: The FairTax untaxes education.
That does sound good.

Reason 6: The FairTax is the only plan that targets and taxes existing wealth, not the fruits of labor.
The title is not really true, but the real problem with this is that not taxing investments while exclusively taxing consumption will greatly accelerate the concentration of wealth among the wealthy, while the abolition of the estate tax will keep it there indefinitely.

Hey, yeah! The FairTax quite explicitly removes the only tax I'm aware of that really does target and tax existing wealth -- the estate tax.

Reason 7: The FairTax boosts the real growth and prosperity of the U.S.
Those numbers are at least twice as high as more conservative estimates. That would still be good growth but the real questions are: Who would benefit from that growth? Would it be everyone, or would it be the richest tiny fraction yet again? Is this kind of growth achievable is some better and less risky way?

Reason 8: The FairTax is revenue neutral.
This thread has not yet been able to debate this one in detail, but I do disagree that the 23/30 figure is correct for revenue neutrality -- partially because it is (as of 2007) based on an assumption of a 0% rate of tax evasion.

Reason 9: The FairTax promotes the American Dream.
"Untaxed" used goods prices will go up in direct correlation to the price of new goods. The FairTax doesn't tax the income used to pay mortgage loans, but I understand that it does tax the mortgage interest itself, which the current system doesn't. Lower rates due to banks not having to pay taxes in interest income will be offset by you having to pay taxes on interest payments.

Reason 10: The FairTax is not a political slogan.
This is not a reason to support the FairTax, this is a reason to not hate the FairTax. And I don't hate the FairTax due to partisan politics; I hate it because I think it's a gigantic mistake.


P.S. The overused "untaxes" theme is clearly an appeal to sheer unreasoning taxophobia and I dislike it. But that's not important to the actual merits and faults of the program.



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Entroper said:
This thread needs a reboot. I can't figure out who's for what (except Eomund is for the FairTax -- I got that much). A lot of the discussion seems to focus on how the FairTax would shift the tax burden as compared to the Income Tax. I'm not sure how important that really is as far as the big picture is concerned.

Er, in that case what is the big picture? When radical tax reform is proposed, who pays what under the new system is kind of important to me.

[edit:  said Captain Obvious.]


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My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.

"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
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To me a balanced budget bill and welfare reform should go ahead of the fair tax.

If we fix those two first, and find ways to get more results for our money... then it makes sense.

Passing the fair tax bill before a balanced budget bill is like putting the cart before the horse.

If I have a dog on the leash and i decide it's preferable to have a fence around my property to run around in, I build the fence first, then take of the leash, doing it the other way is foolhardy.

Social Security reform doesn't really need to be done, because if we get rid of social security taxes, all the government would have to do is make sure it pays what it owes.

After that though i'd like to see some studies done about how people think the fair tax will effect the Gini Index. As while "in a perfect world" the fair tax might make sense, i think the general culture of the United States might make the fair tax an abysmal failure, do to consumption being a major focal point of US culture.

Then there are the issues with having to register an address... as it's not just migrant workers that have this problem, there are plenty of citizens who work as waitresses at places like denys, or work in hotels etc, who have to sleep in there cars, or have very non-static workplaces.

So the dilemna of the prebate seems to be.

1) You require the address (like it does now) and those who work and are most in need end up not getting the prebate, making it somewhat useless.

2) You don't require an address and any legal US citizen can walk in and get his 10,000 grand a year. (Split up over 12 months.) (Which actually might get more dems on your side there.) Which sets up the biggest welfare program ever, in which no restrictions are placed and which anyone can decide to not work at all and collect that 10,000 grand. Which, i don't see how that wouldn't be like socialism.

If your going with the prebate option you pretty much have to go with B.  That is if you absribe to the fact that to be fair this rebate needs to be provided even to the rich.