Letter: Writer misses facts in rant - East Valley Tribune: Opinion

Letter: Writer misses facts in rant

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Posted: Monday, November 25, 2013 2:45 pm

In his Sunday Letter to the Editor, Mr. Rod Livdahl rages against the “Fair Tax” with an emotional vengeance. His diatribe appears to more based on feelings that facts. If he had gone to the website he should have caught the following facts.

All individuals who receive a paycheck from an employer would see their take home pay increase by both the Federal withholding and payroll taxes. In order to make the tax progressive so that individuals who spend the majority of their income on necessities would not be adversely impacted, a “prebate” of sorts is established.

This prebate instead of a rebate, is a monthly check from the government estimated in the amount of what the tax would be for necessities for the individual and or family. We already have what the income levels need to be for levels of poverty or affluence for certain sized families. These are commonly referred to economic indicators, the size if the check is simply based on the number of people in the family.

Since no one would be exempt from paying the consumption Fair Tax, no one would be exempt from getting his prebate, even Donald Trump. The people on the lower stratum of the income scale would come out really paying little or no effective taxes as they do so today. The Fair Tax is set up to be revenue neutral for the Federal Government. They would collect no more or no less money than is collected today.

Other issues to consider that are not immediately apparent: Employers would no longer have to pay their portion of the payroll tax either, so it would instantly become 7.5 percent more profitable to have a person on the payroll. You would no longer have the Federal taxes hidden in the price of everyone who touches a product from the time it comes out of the ground till it hits the store shelf.

The tax is also in your face every day. If the Government wanted to raise more money it couldn’t grant special exemptions to some at the expense of some other group as it does today. If rates were raised everyone would feel it and it would be harder to accomplish. Retirees living off of proceeds of their bonds, CDs or stocks would pay no taxes on them.

Mr. Livdahl mentions with woe the fact that the small business owners would not be able to take deductions to reduce their taxes. Therein lies the fact that Rod misses. There are no taxes on business with the Fair Tax. The small business owner pays the same consumption taxes as everyone else on retail goods, and note that is only retail and not wholesale goods. The fact is that businesses do not now pay taxes, they collect taxes. Any tax a business pays is just rolled into the price of the product that gets sold to you.

But the best part of the Fair Tax is the fact that you will no longer have to pony up reams of personal information to the Federal Government every year and do things you otherwise would not do in order to comply with the tax rules.

Steve Hagar

Mesa

In his Sunday Letter to the Editor, Mr. Rod Livdahl rages against the “Fair Tax” with an emotional vengeance. His diatribe appears to more based on feelings that facts. If he had gone to the website he should have caught the following facts. All individuals who receive a paycheck from an employer would see their take home pay increase by both the Federal withholding and payroll taxes. In order to make the tax progressive so that individuals who spend the majority of their income on necessities would not be adversely impacted, a “prebate” of sorts is established. This prebate instead of a rebate, is a monthly check from the government estimated in the amount of what the tax would be for necessities for the individual and or family. We already have what the income levels need to be for levels of poverty or affluence for certain sized families. These are commonly referred to economic indicators, the size if the check is simply based on the number of people in the family. Since no one would be exempt from paying the consumption Fair Tax, no one would be exempt from getting his prebate, even Donald Trump. The people on the lower stratum of the income scale would come out really paying little or no effective taxes as they do so today. The Fair Tax is set up to be revenue neutral for the Federal Government. They would collect no more or no less money than is collected today.

Other issues to consider that are not immediately apparent: Employers would no longer have to pay their portion of the payroll tax either, so it would instantly become 7.5 percent more profitable to have a person on the payroll. You would no longer have the Federal taxes hidden in the price of everyone who touches a product from the time it comes out of the ground till it hits the store shelf. The tax is also in your face every day. If the Government wanted to raise more money it couldn’t grant special exemptions to some at the expense of some other group as it does today. If rates were raised everyone would feel it and it would be harder to accomplish. Retirees living off of proceeds of their bonds, CDs or stocks would pay no taxes on them.

Mr. Livdahl mentions with woe the fact that the small business owners would not be able to take deductions to reduce their taxes. Therein lies the fact that Rod misses. There are no taxes on business with the Fair Tax. The small business owner pays the same consumption taxes as everyone else on retail goods, and note that is only retail and not wholesale goods. The fact is that businesses do not now pay taxes, they collect taxes. Any tax a business pays is just rolled into the price of the product that gets sold to you.

But the best part of the Fair Tax is the fact that you will no longer have to pony up reams of personal information to the Federal Government every year and do things you otherwise would not do in order to comply with the tax rules.

Steve Hagar

Mesa

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