Perriello's Dishonest TV Ad

[fajams23]

Your video is also misleading sir, because there is no way to get a consumption tax (fair tax is just a euphemism for consumption tax) progressive.

[AlbemarleVA]

The video's goal is not to advocate the Fair Tax, but rather to expose Tom Perriello's gross misrepresentation of Congressman Goode's position on it.

Use of the word "progressive" in the video's narration is taken from the Fair Tax website. While you may well have a good point, there are likely other forums to debate the Fair Tax. Personally, I've not decided my position of the Fair Tax proposal.

Thanks for your comment and for watching--stay tuned, more to come!

[jmoore125]

In fact Sir, you're mistaken, twice.

First, there is no way for a consumption tax NOT to be progressive. As people earn higher incomes, their spending increases. Therefore, their taxes increase as well.

Second, integral to the FairTax is a government "prebate" that compensates everyone 100% of the taxes they pay on necessary resources.

Combined, these factors result in a very progressive system.

[fajams23]

your 1st point - Your point is interesting, but not necessarily true, many people with very high incomes can still choose to spend very little.

your 2nd point - the "prebate" would help rich and poor exactly alike, unless the government determines it will give a higher prebate to the poor. No progressivity there.

[jmoore125]

Thank you for correcting me on my second point, your right.

However, my first point IS true and citing a rare exception doesn't change that.

In many cases, the present system is quite regressive. A lot of people with means incorporate there services. This allows them to declare half, or more, of their income as capital gains, thereby paying only 15%. The IRS has recently clamped down some, but two doctors I know only declare $30,000 as wages on earnings of over $225,000.

[jmoore125]

Cont.

On the flip side, when I was a builder, the Feds took over 15% of the first dollar earned by my laborers. None of these guys even filed for a refund until I told them to.

[fajams23]

the regressivity you are pointing out is a result of tax loopholes; its not inherent in our system. In fact, dividends from corporations were taxed at the same rate as ordinary income until recently. Most republicans would like to see lower capital gains rates as well as a low rate for derivatives, so this problem would have continued under a McCain administration

[dtvgmedia]

Point is that every one goes though periods in their life when they make more then they spend other times they spend more then they make. and some times they give it away or leave some behind to heirs, and they spend it. The only figure that is of use is 100% of what you make is taxed

[dutch3659]

Thanks Guys. I have been a Fair Tax supporter for years, and after watching the Tom Perriello' ad, it really got me angry. My family spent the entire weekend in South Side educating voters on the Fair Tax. The Fair Tax is more than a tax policy. It's about restoring our manufacturing base, and making American Made products more competitive in a global economy. Something that is much needed in the South Side Virginia 5th District.