FairTax FACT: Tax criminals – don’t make criminals out of honest taxpayers.
FairTaxFraud: The FairTax makes everyone a tax collector – from a simple EBay business to kids mowing lawns (no lower limit like the current tax system). The temptation to cheat will be enormous. That’s why it’s safer to make deductions out of the paycheck first. Existing businesses will use business purchases for personal use. People will start small businesses to avoid the taxes. This will make criminals out of honest taxpayers. Even the small E-Bayer or lawn mower will have to get a sales tax license or be forced to “eat” the 30 percent sales tax himself — which almost no one will do. The alternative No-Tax Plan would tax unearned income directly from the government…no intermediate tax collectors required – and thus no cheating. Land and mansions can’t simply be lifted up and taken overseas – and ownership records are carefully recorded. Huge cash transactions and account balances are already carefully monitored by banks.
“The FairTax makes everyone a tax collector – from a simple EBay business to kids mowing lawns (no lower limit like the current tax system).” ~FairTaxFraud
FAIRTAXER: Under our current tax system, every adult (~165,000,000) and every business (~22,000,000) is a tax collector. This “honor system” we have now criminalizes ~187,000,000 Americans. By it’s very nature, FairTax eliminates ~165M tax collectors; leaving only ~10% (the businesses) to collect the FairTax. Let me also point out that most eBay’ers sell USED goods; which are not taxed under the FairTax.
Their statement further shows their own ignorance of the FairTax. DeMinimis Payments and DeMinimis Sales are outlined in `SEC 901 (a) and (b), respectively. However, should a select few escape taxation because they fall within the parameters of `SEC 901 (a) or (b) but fail to report their earnings, they will still pay the FairTax if those earnings are spent on new goods/services.
“Existing businesses will use business purchases for personal use.”~FairTaxFraud
FAIRTAXER: And if they are caught for cheating, they risk being heavily fined and they risk losing their business license. `SEC 504 of the Fair Tax Act details the very stringent CIVIL and CRIMINAL Penalties for “Failure to Register”, “Reckless or Willful Failure To Collect Tax”, “Reckless or Willful Assertion of Invalid Exemption”, “Reckless or Willful Failure To Remit Tax Collected”, “Reckless or Willful Failure To Pay Tax”, “Penalty for Willfully or Recklessly Accepting a False Intermediate or Export Sales Certificate”, and “Penalty for Filing False Rebate Claim”.
“People will start small businesses to avoid the taxes.”~FairTaxFraud
FAIRTAXER: That statement is laughable. Anyone who has started a business knows better. You can’t just walk down to the courthouse and ask for a business license. There are regulations to be adhered to, and paperwork that must be filled out (TONS of paperwork), and fees that must be paid. It may be easier in some States to start a business, but it is not something just anyone can do. And even if they did, they would have to maintain the “business” indefinitely if they want to continue to reap the benefits.