Fw: [idfairtax] Optimists Clubs
- Below is a reply I sent to George in the Idaho group. Perhaps it may be useful to others when faced with the same question as he.John Hanson----- Original Message -----From: JhansonSent: Thursday, August 07, 2008 10:59 PMSubject: Re: [idfairtax] Optimists ClubsHi, George. Under frequently asked questions on the FT website, the question "What do we experience in the transition from the income tax to the FairTax?" is No. 46. The reply is:
Everyone will have to think about taxes in a different way. Income -- what we earn -- no longer has to be documented, measured, and tracked for tax purposes. The only relevant measure of our tax liability is the amount we choose to spend on final, discretionary consumption. Tax-related issues are suddenly a lot simpler and more straightforward than they used to be. The aggravation and anxiety associated with April 15th disappears forever after passage of the FairTax. The FairTax is not new -- most Americans come into contact with sales taxes daily, since 45 states currently use them to collect state revenues. It is easier to switch from an income tax to the FairTax system than it is to switch from gallons to liters, or from feet to meters! Of course, those who depend on the structure and complexity of our current system (e.g., tax lobbyists, tax preparers, and tax shelter promoters) will have to find more productive economic pursuits. However, everyone will have enough advance notice to adjust to the new system.
Job creation booms. Residential real estate booms. Financial services boom. Exports boom. Retail prospers. Farming and ranching prosper. Churches and charities prosper. Civil liberties are enhanced. In short, it is difficult to imagine the far-reaching, positive effects of this change. Though this tax policy is exactly what our Founding Fathers counseled us to do with the Federalist Papers and the Constitution.On page 145 of "The FairTax: The Truth" there is a Table that shows that even in the 1st year of the Fairtax there is growth in GDP (2.4%), Employment (3.5%), Domestic Investment (33.0%), Wages (27.4%), Consumption (2.4%), and Disposable personal Income (1.7%). The table also gives the growth in these areas for the 2nd, 3rd, 4th, 5th and 10th years under the FairTax. A complete analysis of the research behind this table is found at www.fairtax.org/PDF/MacroeconomicAnalysisofFairTax.pdf. I suggest you study this analysis and also the pages immediately before and after the table on page 145, viz. pp. 141 - 146. This should give you all the ammo you need to form a reply to questions raised about the transition period.John Hanson----- Original Message -----From: GJSent: Thursday, August 07, 2008 7:06 PMSubject: RE: [idfairtax] Optimists ClubsThanks for the update
If you have time, maybe you could help me get over a criticism of the FT that I have trouble explaining.
When I'm asked about how the transition period, say the first year, would work, I don't have a good enough understanding to properly explain.
They are saying the first couple years the FT would be extremely disruptive to the economy and cause a couple years of hardships before it began to bare fruits.
What do you suggest I say to them.
LUV the Fair Tax. Someday, just a matter of time and sooner the better.Thanks, george