Fair Tax Rebuttal to National Review Article by Bill Bartlett from Jim Gschwind

The recent National Review article by Bill Bartlett is obviously a "disinformation" tactic piece which plays to those who want the graduated income tax and the corrupt IRS to survive in order to keep power in Washington with the IRS acting as it's police arm instead of back in the hands of the people. It is apparent that he and those he has spoken to haven’t even investigated the fair tax proposal to be adequately informed on it or they would have addressed the issues I will bring forth here. The concept that a federal consumption tax would increase prices is handled appropriately in the bill and replaces the FICA, and other employee taxes on everyone who handles a product or service before the consumer buys it, so it remains “revenue neutral”.

There is no mention at all that the imbedded taxes on all products today would go away, this is so obviously an uninformed piece that only serves as a mouthpiece for those who want the IRS to remain the "police arm" of the government. By not stating the obvious that the present 28% (approx) imbedded taxes on all products and services produced in the US would go away in the form of present employment taxation and witholding they have committed the crime of "omission" slanting the proposal to their own means. This imbedded taxation that we are all paying now on consumer goods actually ranges depending on the industry from a low of 24% to a high of 30% on some products. Also they ignore the fact that a Blue Ribbon panel of highly respected economists came up with this plan for congress not Linder himself. He also states "some economists" say its a disaster bringing up the fears of inflation while other economists say will not happen since this is a "revenue neutral" tax reform bill. As a business and economics doctoral candidate I will attest that most of my peers who have actually read the bill and know of its provisions rather than mouthing what others say without reading state that this bill really has most bases covered. We all know that for any side of an argument whether it be global warming or taxation or forensic science in a courtroom, appropriate “experts” can be found to champion any side of a story. By revenue neutral it means that the increase in sales tax will be equal to the present "imbedded" taxes already being charged. There would in effect be no increase in the price of products or services as the imbedded 28% already being taxed would disappear.

They also fail to mention that since there aren't any loopholes... even the underground economy (criminal) would be taxed as drug dealers for example buy boats, planes and automobiles for smuggling. Illegal immigrants would also be paying their fair share merely buying food and clothing. Lets also not forget that most economists agree that this would also make the US more attractive to foreign investment with an expected windfall of foreign investments of at least 15% increase perhaps in the first year which would dramatically alter our balance of trade which they are all fuming about.

When will these detractors finally use some sense and include all the aspects instead of trying to run a "disinformation campaign" which detracts from the actual issues. Those who use these tactics are showing their utter contempt for the concept that power in this country should be returned to the taxpayer and utter contempt for the voter/taxpayer to understand any complex issue by muddying the waters further.

v/r Jim Gschwind USN/Ret, BS-IT, MBA, PHD Cand. Gulf Breeze Fl jimjeankaraoke@att.net