Thursday, January 10, 2013

Louisiana Goes 'Fair Tax'

It's called a 'sales tax' there.

"The bottom line is that for too long, Louisiana's workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity," Jindal said in a statement released by his office. "It's time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs." 

Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes "as low and flat as possible."  --quoted at AOSHQ

So happens that the "Fair Tax" is really a sales tax (consumption tax, to be technical), although the Fair Tax proposal allows a "pre-bate" based on family size and income factors.

But it's a sales tax, at its core.


Seeker said...

It's hilarious you try to show how smart you are, by saying "consumption tax, to be technical".

That's a little like some moron, who buys a magic pony that poops gold, and says "Technically, it's not gold, it's "Au"

Here is a clue. Try to grasp this, while Fairtax does have a personal sales or consumption tax in it, by far the biggest part of Fairtax revenue has nothing to do retail, nothing to do with personal, and nothing to do with sales.

Fairtax hustle was exposed by President Bush Tax Advisory Panel, who studied the fraud line by line, footnote by footnote.

Yes, absolutely, Fairtax narrative - the hustle - is that it's a personal retail sales tax. They so repeatedly, on their own web sites, and that is the overhwelming impression they give. A simple retail sales tax to replace all other fed taxes.

Bullshit. They also have massive taxes on all city county and states. All state and local governments would have to pay taxes NOT NOT NOT NOT just on retail purchases, but on all "expenditures other than educational expenditures".

Specifically, all wage pension and benefit "expenditures" by all city county and states, are taxed. But ALL expenditures are taxed, other than education. Operate a prison -- pay a 23% tax on that expenditure. Build or maintain highways -- pay a 23% tax on that.

That's not a retail tax, or most of it is not. That's not a tax on persons, other than in the slick definition section, Fairtax added the word " government" to a long rambling definition of a person. But taken literally, that definition also made all businesses and corporations a person too, so it's just balderdash.

WHy have these slick impossible goofy taxes in the fine print? To make the math add up.

Fairtax is bullshit. Sounds great, though. IF they only taxed retail sales or consumption, the tax rate would have to be 64-89%, and even Fairtax suckers know a 89% retail tax would destroy sales.

So Fairtax tries to make their fraud SEEM like a retal sales tax, but they tax much much more, in the fine print.

Dad29 said...

Cute to watch self-appointed intellectualoids struggle with composition and grammar.

You have a cite for your rant, or just multi-word yammering?

Anonymous said...

It's not about composition or grammar, Dad29, it's about the position and the reasons behind it. You have any counter arguments?

Dad29 said...

Still waiting for the cite...

Anonymous said...

You can lead a horse to water...