You wrote in your article "Stacked Deck?":
"The other sound argument against the Fair Tax is that it's another tax, and it could possibly become an addition to, rather than a replacement for, the income and other taxes. That's certainly a risk, in my judgment."
My reply:
Actually we have a federal income tax and sales tax NOW. The sales tax I'm talking about is the embedded cost of the corporate tax which corporations pass on to the comsumer in the form of higher prices.
That's why the FairTax proposed 23% sales tax rate will not simply raise prices by 23% because the elimination of corporate tax will allow prices to fall resulting in an approximate wash. Some prices may be a little higher, some prices may be a little lower, but overall, everyone will have more buying power because you get to keep your whole paycheck.
Joshua N. Pritikin
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I would like to ask one question of the very cynical Mr. Capozzi. Would you rather have a deduction or not owe the tax in the first place? Also, I think you overestimate the power of deductions since only 20% (approximate) of homeowners itemize to take advantage of the deduction.
There is only one control on Congress, an involved electorate. FairTax will pass when the number of supporters approaches 2 million (roughly 800,000 now). That same electorate will keep the income tax from returning.
Duane Neighbors
Powder Springs, GA
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You obviously have not read about the FairTax or you would know that it is the only proposal that COMPLETELY removes all taxes from the poor. It also brings jobs back to the USA, providing work for those that most need it.
I would encourage you to read and understand before you write.
Charles Burns
Glendale, CA