In an unusual move, Beebee awards a second Kool-Aid award today! This time it goes to John Linder of Georgia and any other person pushing the so-called "fair tax." As a professional tax preparer, I can attest to the fact that middle income taxpayers with their mortgage deductions, child care credits, and child credits have on average an effective tax rate of 17%! The fair tax that is being pushed is for a 23% fair tax, and the creation of a beauracratic nightmare to give prebates on a montly basis to the Citizens to make up for the allowance built into the national sales tax. Whoa, whoa, whoa is what any educated person should be saying. Look at the nightmare scenario of trying to get a tax refund once a year, and can you imagine the work force that would be needed to send out checks every single month to every household in the United States. It is so ridiculous, I cannot believe it is being pushed. I sincerely hope that someone steps up to the plate to run against John Linder because he needs to go, and so does any other congressman that is pushing for this fair tax! If you think that prices will go down when imbedded taxes are removed from corporations in the goods and services that we consume, then I have some swamp land to sell you. Wake up people, and say no to fair tax. Am I just saying this because I am a tax preparer, no I am saying this because I know the facts. It would do nothing but make the fat cats richer and allow the government to grow bigger than it already is if you can imagine that.
2 comments:
The words "Fair Tax" sound nice but mean nothing if it doesn't actually simplify the system. Personally, while I believe the current system is overly complicated, I'm not one who is upset about how much I'm currently taxed I just think we have added too many things to the system. Each change over the decades probably had a good purpose but all together screwed up the system. My preference would be to do away with the income tax altogether and replace it with a national sales tax. People argue that a sales tax would be regressive but there are ways to make it less so such as exempting food.
Well in theory a national sales tax sounds good, but let me tell you a fact. There are way too many people operating businesses that collect state sales taxes, and do not and I repeat they do not remit them to the state sales tax offices.
What we need is some reality based audits to be done on people's life styles that are not reporting enough income for the type of home they live in and the type of vehicles they drive. We need competent auditors to work for the IRS to do such audits. I hate to switch to a different system because the real problem is not addressed. Cheaters are always going to find a way to beat the system.
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