by Danny N Diana Higgins on Thursday, July 14, 2011 at 9:42pm
It is inevitable. You may want to share this bit of information with your friends and family because unless they have been following every second of whats been happening inside the beltway for the last few years they probably do not know this but, one way or the other, we are going to end up with a national sales tax in the very near future.
The question is: Do you want to end up with a national sales tax on top of your income tax which will be enforced by the IRS (like the European style VAT that is being pushed by the beltway insiders and pundits among others)? OR
A national sales tax that gets rid of the IRS and completely replaces the income tax? (The FairTax)
The irony of this question is that there are so many politicians that say they “Like” the FairTax, but they are afraid that congress will enact the FairTax and bring back an income tax and we will be stuck with both.
This just in… That fear is disingenuous. The FairTax legislation is the only legislation that specifically prevents that scenario from happening. So if you ever hear your politician say this cop out excuse, know that they are simply just copping out. There is language in the FairTax Bill that will not allow the FairTax to co-exist with an income tax and they know it.
However, under the current system, there is absolutely nothing that will prevent that scenario from happening right now.
In fact, there are plenty of people, mainly tax lobbyists who stand to benefit tremendously from a windfall of new income streams, who are actively seeking to bring in a “small” VAT and couple it with a “flat” income tax under the guise of “major tax reform”.
Here is a prediction from me: The VERY same politicians that say, “I like the FairTax but…” will be the same exact politicians who will vote FOR this flat tax plus VAT idea that will be pushed through as part of a compromise that will come from these negotiations to help solve this deficit problem. They will vote for this legislation because they want to pass this off as “major tax reform” to their constituents and claim it is an effort to help fund Social Security and pay down the deficit.
All of which could be achieved with budget discipline in addition to the passage of the FairTax. Hmmm, let me see…. Get rid of the IRS, never file another income tax form again, and keep 100% of my paycheck(The FairTax) or I still have to keep income and expense records to file every single year for the rest of my life, plus pay a national sales tax on top of that?(VAT plus Flat)
I think I will go with the FairTax, hands down.
Remember you heard it here first. A national sales tax is indeed coming. Which one do you prefer?