The FairTax is the most studied and the most comprehensive tax plan ever designed. With over $25,000,000 of NON-taxpayer money and the backing of 80 World renowned economists, it stands head an shoulders above any other tax plan.
What Mark (FilmCriticOne) doesn’t fully understand is that some of his selling points for turning you off of the FairTax are actually reasons most people support it. Some of his other comments are just plain wrong because he has taken information out of context or used it incorrectly. But as you can see, most of his statements are ambiguous and don’t give any relevant information.
Before I address Mark’s comments, if you want to read the Bill (HR-25), you can do so. I will be using this PDF to reference all my information: http://thomas.loc.gov/cgi-bin/t2GPO/http://www.gpo.gov/fdsys/pkg/BILLS-113hr25ih/pdf/BILLS-113hr25ih.pdf
On to Mark’s comments:
#1) “it would have to be more like 89% if you replaced all other fed taxes.” – Mark hasn’t performed any studies of his own, not that I know of anyways; but the Architects of the FairTax have. One study in particular (fairtax.org/23) explains in detail exactly how an why that 23% is the rate that works for exactly the situation the FairTax creates.
#2) “And it’s not in one place, it’s in various documents that ‘explain’ the legislation.” – What Mark is referring to are the Research and White Papers that have been written explaining in lay terms the Fair Tax Act. They can ALL be found on the FairTax Website and are open for everyone to read. Start with fairtax.org/research
#3) “For example, in the legislation, one of the first sentences, after the definitions, says their ‘principles of interpretation’ is this — they tax all consumption in the US, without exception.” – How the bill actually reads is this:
‘SEC 1 (b)(2) To tax all consumption of goods and services in the United States once, without exception, but only once.
Taxing all consumption, without exception, is what our current income tax system covertly accomplishes today. But the FairTax ensures we tax consumption “ONCE, without exception, but ONLY ONCE”.
#4 “YOu think that means retail sales, or something like it. No, you have to go to their documents to see their definition of consumption. There, they tell you, its a tax on what NIPA defines as consumption expenditures — personal and governmental government expenditures.” – Anyone can do a search through the Fair Tax Act and clearly see that the word “consumption” is not defined. That is because it is defined in any standard dictionary as “the using up of goods and services having an exchangeable value”.
Mark likes throwing out big/unknown words and phrases to confuse people. For instance, the phrase “consumption expenditures” doesn’t even appear in the Fair Tax Act. And just what are “personal and governmental government expenditures”? Only Mark knows, because it’s not anywhere in the Bill.
#5) “Also in the “explanations” are clever statements like wage and pension taxes, that your city would owe”. Nowhere does the Bill state that cities would owe money to the Federal Government. My best analysis is that Mark is taking something else out of context and twisting his own interpretation of what he inaccurately read.
#6) “Plus, very clever statements in the ‘ supporting documents’ tells you — they ‘assume’ city and states will ‘raise their taxes’ appropriately, in another version they say ‘assume’ your city and state will raise their taxes ‘sufficiently’.” As I said before, Mark likes to take information out of context and twist his own interpretations. According to ACTUAL FairTax Research (fairtax.org/basics), “On average, states could cut their sales tax rates by more than half, or 3.2 percentage points from 5.4 to 2.2 percent, if they conformed their state sales tax bases to the FairTax base.” ~ Tuerck, David G., Paul Bachman, and Sylvia Jacob, “Fiscal Federalism: The National FairTax and the States,” The Beacon Hill Institute at Suffolk University, June 2007. (LINK)
#7) “Fairtax could, theoretically, replace the INCOME tax alone, with a 22% retail sales tax. But that’s not what they tell you. They tell you it will replace, essentially, all other fed taxes, including medicare, medicaid, soc security, “death” taxes, corp, etc.” – Again, Mark’s information comes without supporting documentation. The FairTax has done the research and provided the backing that shows what taxes can (and will) be eliminated; AND at exactly what cost. The entire report can be read here: fairtax.org/23