First, Why We Need a Fair Tax

[DanDyer4]

After seeing these two videos on the FairTax, be sure to see my blog

"38 Reasons for the FairTax."

Copy this link

actionsforfreedom.ning.com/pro­files/blogs/38-reasons-for-the­-fairtax

[DanDyer4]

Herman Cain has an interesting economic plan that would take a phased approach to the FairTax. See hermancain [dot] com

[Niftytax]

@DanDyer4 The 999 or "Fair Tax" are not the answer to our economic problems. A "Flat Tax" of 15%-20% on AGI where everyone pays will simplify tax filing.

My 787 Flat tax plan at NoTaxUntilDeath [dot] com will fix and save Social Security retirement because everyone will either opt out of the retirement part of SS or contribute to their private retirement account.

7% of 1st, $150K to Social Security or private retirement account

8% of AGI over $150K to personel Income Tax

7% Net Business Tax

[CCDesigner71]

@Niftytax How much time & money have you spent researching your 787 plan? The FairTax has over $25,000,000 into it and has been researched by 80 world renowned economists from at least 7 universities over the past 16+ years. AND, it is already in Congress. So, if you think they haven't thought about that, you're fooling yourself. And if you think the US can survive on "No Tax Until Death" you're fooling yourself even more. Learn about the FairTax instead of trying to come up with your own plan.

[DanDyer4]

A few corrections since this video was created:

The Senate version is now S13.

Debt has gone from $9 trillion to $14.5 trillion.

Poverty guidelines are different.

The 16th Amendment is now 98 years old.

There are 63 co-sponsors in the House.

[DanDyer4]

Herman Cain, running to be the Republican nominee for President, was asked about the Fair Tax on Fox News Sunday on May 22, 2011. Go to actionsforfreedom.ning.com/for­um/topics/herman-cain-intervie­w-on-fox

for a quick link to hear his responses.

[ericbernaldo]

I think the real argument for the fair tax is that it would give the people financial leverage over the government instead of the government having financial leverage over the people in other words the people would have the power 365 days a year as opposed to every other November 2.

[ericbernaldo]

I like the idea of the fair tax but I I just absolutely do not like the idea of a large majority of people getting a basically a welfare tax from the government each and every month it seems to me that that would create some sort of dependents on government almost like an entitlement system that we have now.

[CCDesigner71]

@ericbernaldo It isn't a "welfare check". ALL registered US citizens will get the monthly prebate. The biggest proponent of the prebate, however, is that Illegal Immigrants will NOT get the check. What this does it puts Legal Documented American Workers on a level playing field. No longer will undocumented workers be able to work for less money, because they will finally have to pay taxes too. Besides, if you don't want your "welfare check", you don't have to register for it. But I know I will!

[DanDyer4]

Herman Cain, a leading candidate for the 2012 Republican nomination for president of the U.S. was asked a loaded question about the Fair Tax on May 5, 2010. Go to fairtax.org/firstdebate.

[DanDyer4]

On April 14, 2011 The Laffer Center reported its "estimate that U.S. taxpayers pay $431.1 billion annually, or 30% of total income taxes collected, just to comply with and administer the U.S. income tax system."

With the Fair Tax, compliance to collect all federal taxes, not just the income tax, would be about as costly as the present system for collecting state sales taxes, a small fraction of 1%. We could get about a $400 billion boost to our economy, just by reducing compliance costs.

[MrKeithmichigan]

As an avid follower of the Fair Tax Plan I want to thank you.

It could also be called the common sense plan for economic sanity.

[DanDyer4]

H.R. 25, Fair Tax Act of 2011, was introduced 1/5/2011 in the 112th Congress, sponsored by Rep. Woodall (GA-7). As of 3/11/11 it has 57 co-sponsors.

[MrKeithmichigan]

@DanDyer4

As an avid Fair Tax Plan guy I want to thank you for your efforts. Trust me I truly understand the frustration you are experiencing. You get it it as do I, after all it just makes common sense.

Thanks Again

[Niftytax]

Real tax reform can be found with NIFTYTAX

[DanDyer4]

You are correct. Your future income would not be taxed. Only what you choose to spend on new goods or services would be taxed.

[GeatMaster]

if we implemented this then incoming money wouldn't be taxed anymore, but money that has already come in, i.e. savings would have been, and then it would be taxed again at point of sale, right? So if i accept that this bill would have a positive effect for all money made after it gets passed, doesn't that still mean that it would significantly reduce all savings prior to it being passed?

[MFP1520]

I PAY NO TAX NOW FAIR TAX WELL NEVER PASS SO I WILL NEVER PAY TAXES

[DanDyer4]

@MFP1520 If you don't think you are being taxed by the Federal Reserve, you need to pay more attention to what they are doing.

[CCDesigner71]

@DanDyer4 Absolutely right! @MFP1520 Needs to understand how embedded taxes work. Check out: federalbudget,com/corpwelfare,­html

[urgener]

The FairTax will raise the standard of living for all current tax payers. The amount we each pay will DROP because MORE people will be paying the total revenue neutral amount, including illegals and criminals. Also, prices will likely drop because companies will no longer need to pay tax experts and lawyers. This "compliance cost" right now amounts to $900 per person on average. Granted, SOME? people will benefit more than others, but there will be no loosers with the FairTax.

[eyeammi]

I'm very skeptical that "hidden" built in corporate taxes will actually "trickle down" into a reduction in the pre taxed price of new goods & services, certainly not enough to balance out a 30% sales tax. Not to mention, everyone seems to forget that they still have to pay state sales & income tax on top. Also, people will just switch to buying used goods &or consuming less to avoid the tax. Demand will slump leading to a reduction in labor demand which will hurt product demand which will...

[DanDyer4]

@eyeammi

Surely eliminating the payroll tax and other corporate taxes will have the effect of reducing prices for goods and services.

[eyeammi]

@DanDyer4 Only if the corps follow suit & pass those savings onto the consumers. However, this is a HUGE "if". History has shown that this money tends to float to the top execs, not the consumers. Corporations are much more likely to hang on to their new found "profit" & turn it into lavish summer homes in the Swiss Alps & the like. This experiment was already tried with the heavy supply side economic focus of cutting corporate taxes & income taxes for the super wealthy with lackluster results.

[capttheo1]

@eyeammi That's the thing about this tax, if a corporation does decide to keep the money and not lower its prices, then its customers will go somewhere else that does.

[jacknash711]

@eyeammi ~ Just the opposite will happen-pure old American Capitalism will occur and prices will come tumbling down. Quit trying to reinvent the wheel. Facts don't lie and the fact is that an income tax is regressive and does nothing to help free up Americans to do more, start more businesses and produce more goods in America. Just the opposite is the fact. If you have not studied the Fair Tax vs. the income tax don't add comments just because you think you need people to think you're smart.

[capttheo1]

@eyeammi  You seem to ignore the fact that it is NOT 30%, it is 23% and the fact that there wouldn't BE an income tax. There wouldn't be much of any federal taxes being taken out anymore. That's the whole POINT. Also, any company that doesn't lower prices will soon be out of business because people will be going to the companies that do!

[eyeammi]

@capttheo1 No, it's a 30% sales tax (look up inclusive & exclusive taxes). Yes, there would still be income taxes. The fair tax has no effect on State level taxes. You still have to pay state income tax (if your state has it) as well as all other state taxes, sales, luxury, real estate, auto etc on top of the 30% federal sales tax. Also, supply side price adjustment lags demand but job loss is much more responsive. Companies will cut jobs before prices & the economic damage will already be done.

[dtvgmedia]

@eyeammi

Re [I'm very skeptical that "hidden" built in corporate taxes will actually "trickle down" ]

January first the year the fairtax goes into effect every company with product for retail sale receives a 23% transitional tax credit that removes the cost of prior taxes payed bringing the cost with the fairtax included back normal. Companies would have to raise their prices despite what supply and demand dictate to keep what they used to pay in corporate income tax.

[oterj0]

@SteamboatCamp

Why do you post this comment so many times under different accounts on any/all Fair Tax videos? Do you not realize that your virtually identical wording and quixotic argument make it obvious? Happy for you to have your opinion, but no one's buying that it's a widely held one.

The govt already pays those taxes when its agencies buy consumer goods. Surely govt agencies buy paper, copiers, computers, buildings, etc that have embedded costs in them, so govt already taxes govt.

[DanDyer4]

My website actionsforfreedom.ning.com discusses more than 50 topics on how to expand freedom in the U.S.

[wetweasel56]

We need a flat rate income tax and remove all other taxes. The way to get there is to shrink government. Right now, our government is out of control in spending and we are paying taxes just to support needless spending.

[DanDyer4]

@wetweasel56 The Flat Tax and the Fair Tax are both flat taxes. The "Flat" taxes when income is earned. The "Fair" taxes when income is spent. It's more efficient and less intrusive to collect when income is spent as shown by the relatively smooth operation of the state sales tax systems.

[wetweasel56]

@DanDyer4...but how much of a chance for corruption is there with a Fair Tax system?

I like any idea that would simplify our tax system and make everyone pay more fairly. Just worried that it may be easier to find loop holes with the Fair Tax system.

[DanDyer4]

@wetweasel56  The prebate feature in the Fair Tax makes it possible for the Fair Tax to have the broadest possible base of products and services that are covered. Education is the only expense that is excluded. Unlike filing a 1040, the Fair Tax requires two parties to cheat, the seller and the buyer. It will be very easy to report or to catch any merchant who is not collecting the tax. I'm not aware of much fraud in collecting state sales taxes, so I think the Fair Tax will work the same way.

[ActionAmerica]

@wetweasel56, a flat income tax is still an income tax and that means that it keeps intact, the most abusive government agency in the Free World, the IRS. Any tax system that leaves the IRS intact keeps the major problem. Also, remember that the current progressive income tax began as a flat income tax. Now that the tax and spenders have a template, how long do you think it will take Congress to make it progressive again - 2 years, 4 years...? The Fair Tax eliminates those issues and more.

[AvmanM]

I don't understand how, by removing taxes "embedded" in the price of products, the price is supposed to drop. Manufacturers will have to pay the sales tax for raw materials, energy, transport etc, negating the effect of removing payroll/corporate taxes. Consumers will then have to pay the steep sales tax again, which will increase prices overall.

[DanDyer4]

@AvmanM What you have described is a Value Added Tax (VAT) where the tax is applied at each stage of production and is largely hidden from the consumer (ultimate taxpayer). The Fair Tax instead is a sales tax applied only at the final stage, the purchase by the ultimate consumer.

[DanDyer4]

@AvmanM That was a great question. You might like to see and join my website actionsforfreedom.ning.com which has conversations on more than 50 issues of national public policy.

[oterj0]

@AvmanM

Manufacturers too pay embedded costs when they purchase things from their suppliers. If you were to believe that both the Fair Tax and the current system were equally efficient (just assume it for now), and they both collected the same revenue (they do), then the net impact on prices must be a wash. True, some goods are favored in the current system and the Fair Tax has no favors, but in the aggregate, prices wouldn't change. Now, factor in the inefficiency of current taxes and...

[MyITRcom]

Having been a victim of the IRS for the past 20 years, having fallen into its jaws. I have been forced to move all my creative efforts off shore. Why Contribute to a Nation that allows its citizens who's intentions are to produce values, only fall into a slavery trap and hole you can never crawl out of? This is happening to many people who like myself just did not understand how dangerous the IRS is to those who might decide to go into business. This would remove that danger immediately!

[ACoolDudeProduction]

We need a Fair Tax! When we do, the economy will soar. By the way Mr. President and members of Congress, if you want everything to be fair, why don't you pass this law?

[DanDyer4]

@ACoolDudeProduction

Hi Cool Dude,

I saw your first video. You might like to see my website,actionsforfreedom.ning­.com. Please join and add your views. ...Dan Dyer

[BrSmith1321]

f you want more FairTax on television and to help spread it to more people, I know that PassFairTax(dot)com is doing a great job on getting signatures and support

[airfairtax]

we need everyone to invest $25 and we can raise enough to air the TV show to get the petition signatures we need to get the FairTax passed! Go to passfairtax(dot)com to invest and pass the FairTax!

[urgener]

Why would anyone NOT support the FairTax? Are they employed by a tax consultant company? The IRS? Did a FairTax supporter hurt their feelings? The FairTax will completely untax the poor, will broaden the tax base to include criminals and illegals, will eliminate some $900 per person in wasted compliance overhead costs, will eliminate all the annual paperwork involved with the current income tax...

[mjrojasmaldonado]

awesome!

[FamousDave2186]

@SteamboatCamp Huh? You pay taxes for everything you buy under the fairtax the person without cancer will still pay taxes. The price for paying for treatment for cancer would be the same if not less under fairtax. We tax productity, shipping everything you can think of, with fairtax producitiy shipping won't be taxed there fore the original price will drop. Do u know anything about running a buisness? why then is our current tax system is better?

[capttheo1]

@SteamboatCamp Now I and everyone else here realize that you are just trying to cling to your job as a lobbyist, and that you want the gov't to be the be-all, end-all of everything, enough so that you always misrepresent the percentage and almost everything else about it. The gov't paying the gov't? Been going on for decades. Having the biggest transfer of power from the gov't to the people in history has you scared to death.

[FamousDave2186]

@SteamboatCamp I tend to recall someone with a very similar typing explaining that oh wait its the same person how many accounts do u have?

Anyways last I checked we still tax on necessities for cancer you just don't see it in the cost. Insurances take care of some to most depending on insurance and it would be no different with fairtax. The current system is a joke and you know it. Would you suggest than a flat tax?

[FamousDave2186]

Ok there's one question I have on the fair tax. How would they work the prebate? Do you give the Government your debit card number to get the monthly prebate? Or do u save all your recipets and mail it to the goverment? If that's the case I wouldn't want the government knowing what I buy. If someone could explain how my privacy would be safe that would be great otherwise I can't support this.

[DanDyer4]

@FamousDave2186 I'm quite sure you could opt to have the government make a monthly deposit directly into your bank account.

[00Aquilino00]

@FamousDave2186

He indicated that the defined "poverty level" would be used as the method to determine the prebate: 23% of the federal poverty level, divided by 12 (for a monthly deposit).

[laudanum4u]

@FamousDave2186 How about running it like food stamps. they certainly have the capacity to send everyone a card

[capttheo1]

@FamousDave2186 Using a table, they would send out a check each month for what they estimate you would spend on taxes for the bare necessities, food and such for a household your size. The more you make, the smaller the check. Past a certain point, no checks.  No receipts needed.

[ziglet53]

Those that don't support Fair Tax flat consumption tax evidently support the income tax, though income is shrinking thanks to the income tax & fed govt. Income tax & all of the tax code's components continually flush jobs out of the country, hence, less income to tax. So while govt grows & entitlements mushroom, fewer dollars to pay for it. HELLO!! We need the Fair Tax stat if we have any hope at all of preserving our sovereignty & sustainable prosperity.

[somedudeinva]

Nothing would make this country better than the fair tax.

Because of that, I doubt it will ever happen. The opponents to it who wish to use the tax code to control us will never give up this power.

Most normal people are not willing to sit through even a 9 minute video like this, which explains it nicely.

9 minutes to change your life. And most people won't do it.

[ziglet53]

Judging by many of the responses to this vid, it's clear that many are much misinformed about the Fair Tax Plan. I suggest reading Fair Tax : The Book. Though an amazingly simple, easy read, it is surprisingly interesting & edcuational. Parts of it will, however, make your blood boil. Those parts reference our present tax code.

[ziglet53]

Excellent, well thought out, presentation. We need Fair Tax stat if we hope to save the nation's economy. People need jobs, money, to get America back up & moving.

[DMMaine]

you don't understand, prices won't go up, we already has taxes imbedded in EVERYTHING...

Corporations pay taxes now, they are imbedded in the sales price.

I have a small business and collect sales taxes now, it would be easy to update my software to include the fair tax

This eliminates the wasteful energy involved in collection and compliance efforts, since it is simpler and has NO exceptions (even government) it covers a much broader base, caputuring illegals, drug dealers, etc...

[DMMaine]

read the books, this tax format solves all of our problems, giving a prebate = to tax paid to attain the poverty level means that the poor will pay LESS tax than they do now making it easier for them to get ahead. If they buy only food items new and used "stuff" for everything else they can really get ahead!

[DanDyer4]

We spend 7.6 billion hours on tax compliance, according to the IRS Taxpayer Advocate, at a cost of nearly $200 billion annually. From 2001 through April 2009, Washington initiated 3,125 changes to the tax code, or more than one a day. One recent study ranked the U.S. tax code 122nd in complexity among 175 nations worldwide.

[CanteenKid]

Dan -- yes we need a easy to understand tax code.

A simple tax code is possible, just tax all income the same, a flat rate, or whatever basic rate you want. Just have all income pay that, whether its income from stocks or working or inheritance, whatever.

It could be five pages long. It could take five minutes to complete.

But since Fairtax is a farce, ince Fairtax leaders know their own plan is a farce, and are not trying to pass it -- that's not the solution.

[laudanum4u]

yeah, you know, except the fact that they are. But don't let facts get in your way.

Go on tell us about the how we FT rips off Cancer patients (for around 20% less then our current system)

Or how city and state governments won't support a new tax (that replaces the old taxes at a small savings to the respective governing bodies)

Those are my favorites, Mark. Then start repetitively cursing at me. call me a "dumb fuck" twice in the same sentence. And use 25 different accounts to do it with.

[fsufan850]

The poor spend more percentage of their consumption on items needed for basic needs(food, utilities, healthcare, etc) then the rich do. This tax would disproportionately help the rich, and punish the consumer.

A nations wealth has been always defined on it's ability to consume, not on it's production. That "prebate" is pennies to cover what would needed to offset this classwarfare that this bill would seek to create.

[capttheo1]

Don't forget, it also covers purchases that only the wealthy buy. The wealthy would not receive a prebate check. Could you please explain to me how lowering prices would punish the consumer?

[fsufan850]

This tax would not lower prices of goods. It would actually make countries that already sell use cheap goods less inclined to do so. a 30% markup on every good means would mean that lead to less consumption of goods. This would instantly piss off all overseas manufactures which would markup the price of goods even more to makeup for the loss in revenue they would receive.

[capttheo1]

Might I inquire how eliminating imbedded corporate taxes, thereby making it cheaper to make things, would not lower prices? Eliminating corporate taxes would not only bring back our overseas jobs, but foreign co.'s would want to start operations over here as well! That's why our jobs went overseas, for the tax break. If they could go from low taxes to almost no taxes, they'd be back in a flash. Either that or they'd go broke.

[fsufan850]

This tax would be more inclusive than the corporate taxes already are.

[oterj0]

@fsufan850

A large part of what makes consumer products expensive is corporate taxes. If corporate taxes are 35% on profits, what do you suppose the business does currently in response? Do businesses simply eat the cost of corporate taxes? They have the option of eating it (less profits), making employees eat it (less wages), or making consumers eat it (higher prices). Clearly the market decides and some combination occurs, but don't think consumers don't currently pay corporate taxes.

[oterj0]

@capttheo1

Everyone will receive the same prebate check, wealthy and poor. Since the poor have lower means, they get a much high prebate on taxes in terms of percent.

[capttheo1]

@oterj0 Actually, the prebate only goes up to around the poverty level. Much over that and no prebate as the wealthy don't need it to survive, the poorer do.

[oterj0]

@capttheo1

The prebate definitely would go to everyone. The calculation for it is based on the poverty tables. If poverty limit for one person is $12k, then the prebate check would be 23% x $12k / 12 mos/yr = $230/mo. Every single person would get $230/mo to cover taxes up to the poverty limit. Not giving a prebate check to "wealthy" people would add unnecessary complication to the system. The concept is everyone (rich and poor) pays no taxes up to the poverty limit.

[capttheo1]

@oterj0 That's right! Up to the poverty level. After that, according to the copy of the bill that I have, no check.

[oterj0]

@capttheo1

Um, not sure what you're saying. Everyone will get a check equal to poverty limit x fair tax rate. If everyone were single (as an example), everyone would get the same exact dollar amount as a prebate. Is there something wrong with this?

[oterj0]

@fsufan850

Yes, the poor do spend all their money on consumption whereas the wealthy dont thus sales taxes in general are regressive. However, the prebate addresses this. If you think the poverty level is not high enough for the prebate, then let's debate that, but it cant be said the FairTax is regressive.

With current corporate taxes, business embed the cost of taxes into prices, which are an indirect, regressive tax with no means to address. Current tax code is very regressive.

[Piscivorus]

Top Five Reforms:

1. End all US military conquests

2. End all US foreign aid

3. Close the Fed and privatize banking (mandate 100% reserves and allow multiple private currencies)

4. Pass the Fair Tax

5. Abolish the patent system

[capttheo1]

Why abolish the patent system? People who work hard to invent or develop something want recognition for their work. Without the patent system that would be almost impossible.

[Piscivorus]

Recognition only requires an entry in an official archive. A monopoly has nothing to do with recognition, it's all about greed and it destroys everything a free market depends on.

[capttheo1]

So, in other words, they have no need to benefit financially from their work, they should just do it for the good of the state. We have GOT to remove any incentive to improve anything.

Without a little bit of greed, we would have no need for money. The Commissar would just give us whatever he thinks we need. Personally, I think that the Fair Tax should be #1. If we passed that, so much else would fall into line.

[Piscivorus]

No, that's not what I'm saying. You don't need a monopoly to make money and your lack of a monopoly doesn't mean you lack a profit incentive. Your financial success in a free market should be determined by your ability to compete, not by your ability to get the government to eliminate your competition for you.

The reason I listed the Fair Tax at #4 is because it will reduce government revenue and reducing government revenue before eliminating it's greatest expenditures would be a bad idea.

[capttheo1]

Actually, the way I understand it, it will increase revenues because it will start taxing the shadow economy. Illegals and such like that. They may not pay taxes currently, but they do have to eat.

[Piscivorus]

It will definitely help. But considering how the American public's approval rating of Congress in general is at an all time low, I would not be surprised if most people go out of their way to buy non taxable goods before spending a dime on taxable goods. And every time the President and/or Congress tries to do something we don't approve of, there'd be a major dip in taxable sales followed by a dip in federal revenue. That is how it should be though, imo.

[oterj0]

@Piscivorus

On monopoly, who would invent things if once it was invented it could legally be reverse engineered and marketed by another company. Maybe we don't need 20 yrs for patents, but without any IP protections, invention gets exported.

[urgener]

The FairTax helps everyone! Granted, some demographics benefit more by it that others, but it'll benefit everyone. The super poor benefit the most, since they'll never even have to complete the short tax form to live tax free. Each tax payers share will go down, due to lower overhead costs, and by spreading the burden to illegals and criminals.

[Truthpolice9698]

Ignorance is bliss.

Obversely you don't know how the tax works.

If we get the Fair Tax we need to prohibit all other federal taxes by a constitutional amendment.

[ziglet2008]

Your claims indicate that it's YOU that knows nothing about the Fair Tax. Love to see you argue the Fair Tax with Harvard economist Dale Jorgensen, or Boston University economist Lawrence Kotlikoff, and those of their ilk..

[Piscivorus]

Senate bill 296 (S.296), Title IV, Sec. 104. "If the 16th Amendment ... is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of ... this Act (currently the Fair Tax Act of 2009) shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which such period ends."

It's a start but, I agree with you, we need explicit Constitutional protection from taxes on income/wages/salaries.

[Piscivorus]

Correction, Sec. 401., not 104.

I'm so dyslexic. lol

[Truthpolice9698]

If the Fair Tax is passed there will need to be a constitutional amendment prohibiting ALL other federal taxes INCLUDING tariffs.

If the Fair Tax is passes the US Federal government will use it as the European equivalent of the VAT or Value Added Tax.

In other words ANOTHER TAX!

When people promote the Fair Tax they need to promote a constitutional amendment PROHIBITING ALL other federal taxes.

Thank you.

not a problem.

[BritBoyProductions]

Its written into the bill!!

[DanDyer4]

A common criticism of the Fair Tax is that the government has to pay taxes on its own purchases. But moving money from one pocket to another is not a big deal.

[DontTrustTaxCons]

Moving money from one pocket to another? No, Dan. They are counting that as income when they move it.

Plus - state local and county governments have to pay this tax. Were will they get the money?

Only people pay taxes. So its a very very big deal.

[skmoguls]

Who is counting it as income?  And what does that have to do with the price of tea in China? Quit creating smoke screens!

[skmoguls]

Also, if you have an alternative proposal for tax collection, I would be all ears. I have to assume that you would agree that our current IRS based system is dysfunctional.

[MurphysTaxLaw]

I have an alternative -- anything that isn't a Alice in Wonderland - Mad Hatter bit of lunacy.

This has ZERO chance of passing -- because it funds the government by taxing absurdities. We need a real tax code that is fair and simple -- not a plan that is knowingly and horribly deceptive.

[skmoguls]

Fair and simple. Sounds to me like fairtax. Could not be any fairer or any simpler. What possible alternative could achieve this?  Please explain if you think you have a better plan.

[skmoguls]

Well until I see a plan which can reduce govt spending and also provide a different approach to tax collection, I have to stick with FairTax as a program which best provides an alternative to our current IRS system and the inequitable distribution of the tax burden.

If we want to consider the govt as an exception to paying sales tax for retails items, we can look at that. But, what other exceptions will then arise?

[ziglet2008]

One of the things I really like about the Fair Tax is that politicians have to pay taxes. It doesn't make any sense that they would be exempt in the first place. America is a team effort and we all have our jobs to do. Our elected folks in the Beltway should not suddenly become royalty. Aren't we already paying them? Sheesh. And no more tax code loopholes created by lobbyists with their special interests. All Americans will have a big breath of fresh air when HR25 is passed!

[DanDyer4]

A few viewers have said the Fair Tax will not work because it requires the government to pay the Fair Tax (to itself), as when it buys a plane or ship. But moving money from one pocket to another is not a big deal. If the car that pulls up behind you at the gas pump is a government car, it pays the same for gasoline that you do. If its a state or local government car it pays the Fair Tax to the federal government, after getting a lower price without the embedded costs of the present tax system.

[Piscivorus]

NawwLeans, the Fairtax is only 23%, inclusive. How much of that 150K do you think comes from income and corporate taxes? I don't know for sure but, considering how wide and deep the medical pipeline is, I bet it's more than 23%. So if you remove all the costs of income taxes before adding the Fairtax, the cost will go down, not up. And collecting a sales tax from the government for what it consumes is no less crazy than collecting incomes taxes from government payrolls.

[skmoguls]

I do hope you release that there are already embedded taxes in that 150K medical bill? The Healthcare system is passing these taxes on to you. With Fairtax, these embedded taxes are eliminated and replaced with an alternative plan. I pretty much evens out. You will still pay 150K...

[ajpmathwiz]

Mark, you know that debt repayment is untaxed under the Fair Tax system. You're lying to conceal the fact that while the initial debt would be taxed, the money to repay it over time would not be.

[SteveCSX]

We need a fair tax. I did the math and apparently I would save quite a bit, and have much more spendable income.

The current tax rates stink.

[ConservativeE]

Not just the rates my friend, but the entire code. There is not one person in this country that fully understands the tax code we live by now. It is hundreds of thousands of pages long, if not millions.

A simple 23% sales tax rate based on consumption would do away with all other forms of taxation.

[locoman64]

The Only Reason The Goverment doesnt simply vote for fair tax is because of the loss of power from the government to the people. what we as the people need to do is start world wide rallys for the fair tax. this government was founded on going agenst the government

[ConservativeE]

You are correct. With the Fair Tax, the people have power over government spending.

[ziglet2008]

I actually think that if our elected officials know that we want this they'll support it. It's all about votes for them. When they see a groundswell of support for the Fair Tax, they'll be onboard.

[Piscivorus]

The Fair Tax idea is fantastic. Congress and the prez have nothing but BS excuses for not passing it immediately.

[me5g435rg]

takes their power

[electricguitarplayr]

the church would also do a better job at helping the poor and drug addicted and sick than the government. drugs are just as much, if not more, a spiritual issue as a medical issue. the Lord will always do a better job at healing than doctors and nurses. drug addiction can be healed by the blood of Jesus. God bless you.

[JackPeebly]

I like the idea but I wonder how much inflation this would cause?

[DanDyer4]

Inflation is caused by too much money chasing too few goods. The Fed is creating more money, but I don't think the Fair Tax would do that.

[electricguitarplayr]

fix our monetary policy and inflation would go down. and all those people that cheat on or evade taxes wouldnt be able to under a sales tax the would make more money and if spending is cut we could start paying off our debt way better than that stimulus bill

[jgposner]

This is GOLDEN!!! I love the fair tax. Thanks for putting this together. I'm going to send all my friends here. One question, what will this do to the GDP? Has anyone made any educated guesses? Since we are a consumer based economy and people will now be encouraged to save rather than consume? Or is there an adjustment period?

[pete5668]

I love it too! It makes April 15 what it should be, just another beautiful spring day!

[Diskatopia]

From BHI/fairtaxorg:"Households in the lowest income band, with an (AGI) of less than $10,000 annually, would benefit because they would receive the prebate that would more than offset any higher cost of purchasing goods.Households in the top income category, with more than $150,000 in annual income, would also gain as they do not have to pay their highest marginal tax rates. Mid-income category households would lose because the Fair Tax would impose a relatively higher tax rate on them."

[DanDyer4]

IRS says it has a $345 billion "tax gap" it is owed but can't collect. We spend $265 billion each year on "compliance" to figure out how much we owe. We waste 2% to 5% of GDP making distorted economic decisions to get the best after tax effect. These add up to more than $800 billion the Fair Tax would save to help the middle class and others. Add to this the greater investment in the U.S. and the 10% growth in GDP and the middle class will definitely be better off with the Fair Tax.

[jgposner]

That's right. My brother and I both own small businesses and we both make purchases that we wouldnt normally make because of the tax savings. My friend bought a Yukon and got a huge tax deduction because it was over a certain weight. I was floored when he told me. The tax code is filled with these ridiculous incentives.

[Laynep123]

On top of that, by taking away the embedded taxes on all goods and services (Because we all know corporations are passing their costs off to consumers) you are basically neutralizing the effect of a sales tax increase. Think of how great it would be to keep your entire earnings and pay roughly the same for all new goods and sevices.

[The1stHNIC]

We also have to think about how income taxes effects the price of goods and service now.

The other thing that is an unseen benefit is now all monies legal and illegal will be accounted for in the tax plan.

Narcotics distribution

Prostitution

Trafficking

Copyright abuse

and general corruption

Has to account for hundreds of millions if not billions of dollars.

[Cainer666]

Why don't you just legalize, regulate, and tax all currently illegal drugs? You'll get a huge tax base, cripple organized crime, and spend less on law enforcement. You'll drastically reduce the access minors have to drugs, and be able to more effectively deliver resources to those who do have addiction problems.

[The1stHNIC]

Cainer666 ...I'm glad you responded and you have a very good point taxing these things would would not eliminate drugs but destroy the extreme profitability in them ..

Interesting ... I wounder what axes are currently doing to our legal industry? See your so use to paying them you have no idea what how it effects our current economy.

Under the fair tax plan we would realize not just more in our pay checks but more companies relocating here closer to their main customers Americans!!!

[jgposner]

I agree we should legalize drugs because more damage is done in the form of crime than could possibly be done by legalizing it. However, the fairtax benefits go far beyond the drug dealers skirting around paying taxes.

[electricguitarplayr]

drugs are evil the church needs to preach against them theyd do a better job getting people off and away from drugs like what my church does

[bigredlance]

I love your video. I wish I could have a close-up of the pie chart where you were talking about the % of government revenue for each tax type.

[cowgirlinla22]

Makes sense to me! Thanks Dan for the clear explanation! I've been hearing about the Fair Tax for a while now, but I didn't understand it completely. Now I do!

[Piscivorus]

Just the facts?

No fancy graphics or cartoons?

No music or trained narrators?

Best presentation I've seen yet!

[deerichards]

Thank you for your efforts. I will be sending this link to everyone I know!

[Cunnilingbill]

Excellent job, Dan!  Succinct!

[chwparker]

incredible video. We really need to get the information in this video out there.

[eae550]

Great Grandpa! Very clear and informative, looking forward to more youtube videos!

[JohnnyFairTax]

Very nicely done, Dan. Keep it up!