I will forever associate the word "airship" with Final Fantasy VI. Damn you, early-mid 1980's birth!
On that note, someone needs to make an ultralight "ship" out of composite materials and build a giant hot air balloon that looks like a Final Fantasy style air ship. That is the first thing that came to mind when I started reading the article.
The "Fair Tax" won't pass because so many people would be harmed by it, and so many people would object to being lied to.
What people would be hurt? They would be getting a nearly 24% raise in pay since they wouldn't be paying any taxes out of their paycheck, no income, no social security, nothing. Not one dime coming out of their paychecks. On top of that they would be getting a check every month from the government to cover the cost of those necessities in the form of a prebate.
The "Fair Tax" proponents don't tell you the actual rate, they tell you the final percentage of your bill that is taxes. The typical example I hear is "a $71 dollar shirt would cost $100, a 29% tax." The truth is, 29/71*100 is a 41% tax. (Nobody expresses existing sales taxes as "of the whole" numbers, it's always "of the item".)
The rebuttal to that point is several pages, but needless to say you are misinformed.
The second reason it is unfair is because it punishes people who have saved money. I have two kinds of accounts -- post- and pre-tax. The day the "Fair Tax" goes into effect, every dollar in a post-tax account goes down 41% in value. (I could have bought the $71 shirt for $71 yesterday, today it costs $100.) Every dollar in my pocket yesterday, which is post-tax money, will be taxed again. Every dollar in my pre-tax accounts goes down 41%, too. That money was put away with the promise that I could withdraw it when I'm old and have no income, thus most likely paying no tax on it.
You're 41% number is off, and I would hope that if/when the bill was up for debate that pre-tax accounts would be reimbursed. I'm well informed on the fair tax, but far from an expert. But that is something that would be easily fixed.
Want to hear the biggest lie the Fair Tax people spew? "It will do away with the IRS." Someone has to be in charge of collecting and processing the "Fair Tax", and even if it isn't CALLED the IRS it will still have the same function. It will be a massive federal agency tasked with tracking down every ten year old who spends a buck on a piece of candy to make sure the taxes are paid.
Yeah, I don't see the IRS going away either, but I do see them leaving nonbusiness owners alone. If you own a business you'd still be required to file sales taxes, but it would be part of your job, not something you have to do to be a citizen. If you own a retail business you still have to pay taxes, but there are a lot less retailers than there are people which means there is a smaller pot to have to watch and a lot less loop holes to wiggle out of. I'd rather the IRS be watching Wal-Mart than watching me. I shouldn't be put in jail or fined because HR Block fucked up my taxes, I shouldn't have to file taxes anyway. I don't mind paying taxes I mind the stress properly filing.
See? There will be so much paperwork and effort involved in dealing with the "Fair Tax" that nobody will be out of work. You can't get rid of the mortgage deductions because too many people want it. You can't get rid of charitable giving deductions ditto. At the end of the year, you'll have to find some way of figuring out how much you paid in "Fair Tax", which means keeping ALL your receipts, just so you can make those deductions. Businesses will have to add staff just to keep track of the new tax.
Unless you're buying a new house there would be no taxes to worry about. Just buy a used house, that is the huge mortgage deduction you want. If you're rich build yourself a new house and pay the 24% sales tax on the house, if you can't afford that buy a used house and safe 24%. Its not that hard and that is what is good about the Fair Tax. Also deductions are already calculated based on your income and given as part of your monthly prebate check. So you wouldn't need to keep receipts. That alone would encourage savings since if you aren't spending, but you're earning you'd be making money off the fair tax.
I have yet to pay for the services of a tax lawyer, and I use the software only because it makes "what if" questions easy. "How much more charity would I have to claim to get $10 more back?" Nobody forces me to pay anyone, nor am I forced to keep itemized lists of what I've bought and spent just so I can get my deductions.
Then you sir are a lucky man. I guess you've never been divorced, paid child support, bought a home, remodeled a home, moved between states, had a family member die or any of the other "life changing" events that would require more than filing a basic tax return. Not to mention people who've had multiple jobs in a year or kids over 18 who are still getting money from their parents. And if you're just doing the basic filing you're paying more in taxes than you need to, which is ok, but some of us have better things to do with our money.
"Given the choice between accomplishing something and just lying around, I'd rather lie around. No contest." -- Eric Clapton