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28.10.04

The Fair Tax plan

I have some unresolved questions and concerns with the plan myself.

ISSUE #1: How will imported goods be taxed? I believe in tariffs very strongly, however, I am concerned with the distinction between imports which are final goods for sale versus imported raw materials. Will the feds place tariffs on each on the way into the country and then impose the sales tax at time of sale, thereby successfully double taxing consumers?

THOUGHT: Do Democrats oppose this plan because it would free churches and other 501(c)(3) corporations from the restrictive laws which prohibit certain speech? Particularly, would the Fair Tax enable churches to begin publicly railing against Democrat social policies?

THOUGHT: The Democrat party is opposing this bill because it will take away some incentives that illegal workers who come here and work for "under the table" wages will no longer be able to avoid paying taxes. Not only that, the illegals will have to register in order to receive their monthly rebate check for the taxes each person will pay for basic life necessities.

The fundamental differences between supporters and opponents can be boiled down to the following:
-Those bureaucrats hungry for power want the income tax so they can control the economy from Washington
-Progressive taxes are "fair"
-Consumers and employees pay all taxes, "companies" don't pay anything
-Poor people deserve a "free ride" which they get now but wouldn't get under the Fair Tax
-Accountants would be out of work

Boortz lays it out for the 149th time, here.

UPDATE: Fairtax.org has filed an official FEC complaint because many Democrats are misrepresenting the plan.