Wednesday, September 21, 2005

The Fair Tax Act. Is it possible?

If you go to the FairTax.org page you will see on the top left side a round button that will take you to the section of video clips dealing with the fair tax question. My only problem with it is that I don't think the "embedded" part of what a business pays will be given back to the public in a price reduction at the retail level. My $20 DVD purchase under the Fair Tax would be between $25 to $30 on that purchase.

Under the Fair tax act that would be a $20 DVD still. Thats because its said that the "embedded" costs due to IRS compliance etc would be taken away by bussinesses. Who is to say that the DVD makers/producers will lower the price of that DVD??? If I could get $25 instead of $20 they will do it and give plenty of excuses. like the "cost" of collecting that sales tax. They will use this Fair Tax as an excuse to take from the American public.

The Fair Tax Act has really no chance in being even passed because of the fear I talked about above. Congress needs the ability to raise revenue in case of an emergency. The CIA might not like the fact that the government would not have control of how much money is coming in. It would be out of the government's hands. Some do not like that and with very good reason. National Security could be a factor behind closed doors. Do you think?

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