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Section A: General News


Letter: ‘Fair Tax’ is a fraud




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August 14, 2013 | 1,880 views | 11 comments

Editor:

I am a retired CPA, with no financial interest in any tax system.

The so-called “Fair Tax” (FT) is a fraud -- it is Karl Marx on steroids and a Bernie Madoff financial scam.

In their own words, FT proudly advertises that it increases welfare via its prebate.

The FT hits us with a 40- to 70-percent in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our 70-percent retail-sales-sensitive economy. Forty percent equals 30 percent FT and, for example, 10 percent state sales tax. Seventy percent is the rate needed at a sample 30-percent FT evasion rate (the FT incredibly assumes zero evasion).

In addition to that 40- to 70-percent tax, the FT contains several hidden taxes. The new IRS will be far worse, far more invasive than today’s IRS -- we may well have to file an “Annual FT Summary.” We may well wind up with both a new income tax and the FT.

What we need is a flat income tax with no deductions, no exemptions, no credits, and a 10-percent rate. Call your representatives in Congress and let them know that this is what you want.

STEPHEN C. ELDRIDGE

Cosby, Tenn.
 

Your Opinions and Comments

 
Stephen Eldridge  
Cosby, TN  
September 6, 2013 11:59am
 
To: ChiefNoTell Their deceptive rate has bee set at 30% (they look at the sames numbers cock-eyed and call it ONLY 23%). The problem is that it'd is really 37.5 (with the fed & S/L govt's paying) and really higher ... More ›

 
Stephen Eldridge  
Cosby, TN  
September 6, 2013 11:54am
 
To: retiredinlavernia, No only do you NOT get credit for any Income Tax you paid on those funds (and will pay full FT when you spend those those funds, but part of the FT you would be paying force you to pay all over again ... More ›

 
retiredinlavernia  
lavernia  
August 24, 2013 10:01am
 
How is the "Fair Tax" "Fair" to the millions of citizens like myself who have no, or very little, income and live off of the money we made in the past (before retiring) that has already been taxed and ... More ›

 
Chief Noetall  
Wise, Texas  
August 24, 2013 8:16am
 
Stephen......I agree that the fair tax would be a redistribution of wealth and an enhancement to our current welfare system. The opportunity for fraud is limitless. When it gets to the point of being examined by reputable ... More ›

 
Stephen Eldridge  
Cosby, TN  
August 24, 2013 8:01am
 
To Prairie Grouch & Begi; Prairie Grouch - the FT doubles down on Refundable Tax Credits in that today they are paid only too those who WORK but the FT's Prebate (maybe more $) are paid to EVERYONE, whether they work ... More ›

 
Stephen Eldridge  
Cosby, TN  
August 24, 2013 7:54am
 
To: Fred Walker Sorry, Fred, it is YOU who don't understand the FT. First, the FT is MORE WELFARE and the FT proudly announces that. You obviously don't understand how it accomplishes that (I do)and you obviously don't ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
August 15, 2013 3:40am
 
Most low income persons pay no federal income taxes so the fair tax would eliminate the EITC which can run over five thousand dollars each year. Trading the lack of a payroll tax for a minimum of a thirty percent sales tax ... More ›

 
Elaine K.  
Floresville  
August 14, 2013 6:32pm
 
Like Prairie said. :)

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
August 14, 2013 6:27pm
 
BEJI.....I THOUGHT YOU WOULD KNOW THAT WCN IS READ ALL OVER. I SAW THAT ON A BILL BOARD LOCATED ON HWY 181 A WHILE BACK.

 
Beji Amhoudi  
La Vernia  
August 14, 2013 6:16pm
 
Does it strike you as odd that a guy from TN sent a letter, and a guy from NC is a subscriber to rebut it? I mean, we're a rural county far from either. Why should anyone from so far away be so concerned about our little paper?

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