Fairness in the Proposed Georgia Sales Tax Plan

The proposal requires elimination of the income tax and dependency on collection of a state sales tax. The supporters and authors proclaim a consumption based tax as more fair to everyone than an income tax.

So let's tax everyone in the same manner, for fairness reasons.

So, it's fair to tax a college student, married with a child, working part time in the school library, in the same way as a unmarried college graduate, working their first post graduate job in their chosen field of study.

So, it's fair to tax my aging, gray haired Mother, living on that legendary fixed income, in the same way as the 40 something cardiologist who performed my Mother's by pass surgery.

So it's fair, to tax the single mom who dropped out of high school to give birth to a baby, conceived by incest or rape, in the same way as the father of the child, who denied the crime, escaped justice by calling the under-aged mother a slut, a whore, and a liar with the help of a public defender, appointed by the court and an all male jury?

As said more eloquently by so many others, life isn't fair. The governments must tax and spend, based on solid goals to address the unfair nature, not of life which cannot be legislated, but of income and position within unfair and unequal social and economic systems.

The FairTax and common sense

No discussion should be without facts, so before discussing the FairTax, let's get some facts from the Internal Revenue Service Tax Stats available online at www.irs.gov.

Total personal income in the United States in 2004, $6.8 trillion dollars.
Total Federal Government budget, $2.8 trillion dollars.
Total of Personal Income Tax collections, $831 billion.
Average Personal Income Tax rate, 12.10%.
Short fall of Income taxes to budget, roughly $2 trillion dollars.

There are real world numbers from the best source. No one invented these numbers to sell a book.

If the FairTax is imposed and every taxpayers spends every dollar of their personal income on new items taxes at the “quoted” rate of 23 percent inclusive, the federal government debt would increase at least $1.6 trillion dollars before the Federal Government pays the prebate. After the prebate, which on page 85 is $6,072 per household times 130 million households, the Federal Debt would increase by $2.3 trillion dollars.

The FairTax, going by real world examples, will not fund the Federal Government and would increase the Federal Debt by $2.3 trillion dollars each year.

The FairTax is a sales tax on new items only. Can you spend more than your income? Sure. And, under the FairTax, you would be taxed for that borrowing. At least 23 percent. And, even with all possible borrowing included, the FairTax will not collect enough revenue to fund the Federal Government.

Assuming every taxpayer increases personal debt by 30 percent, far more than any bank would loan in one year, the FairTax would only collect $2 trillion dollars in revenue at the quoted rate of 23 percent inclusive.

Let’s make it simple, because it is really simple.

The present budget is $2.8 trillion dollars. Add the "prebate" of over $789 billion dollars. The new budget will be over $3.5 trillion dollars. Unless Americans borrow huge amounts of money to buy new things, the real tax rate will have to be 51.4 percent on all sales.

Maybe the Federal Income Tax average rate of 12 percent seems high. But, why beg to be taxed at 51 percent as a tax protest?

The FairTax is not only a fraud, it's the biggest tax lie in North Georgia History.