A Harder Look at the Fair Tax

How about the examples he used with the State using the sales tax base (which looks like their existing state base and not the FairTax base), if you use the FairTax base for the State sales tax it drops the rate by about half. He quoted 15% for California... That's half the Federal rate and just ridiculous. Also a micro-economic studies was done by Kotlikoff and a couple macro-economic studies by Beacon Hill and Arduin, Laffer & Moore Econometrics. Nice rebuttal!

It is very obvious Mr. Alder has good knowledge of some aspects of the FairTax, but didn't understand how those aspects actually work,or chose to ignore the facts. In reading comments from his blog, it is apparent many of his readers chose not to investigate the FairTax for themselves before drawing conclusions based on Mr. Alder's comments.

For example:
One lady on Townhall's blog said that rich people wouldn't eat anymore than she does. She failed to realize their time of eating out will be more often than hers and they will be in the $30 a plate price range whereas her's will be in the $8 - $12. This means the rich will be paying 1.5 - 3.5 times more in taxes everytime they go out to eat than she does.

She also mentioned buying a used cocktail dress for $15 and being taxed at the same rate as the rich -- which shows she does not know used goods will not be taxed under the FairTax, so all of her purchases of used goods are untaxed, regardless of whether it is clothes or used household items. The rich donate their used clothes and used equipment to Thrift stores and go buy new high priced clothes and equipment. Her $35 used TV bares no tax, while the rich people will pay $460, or more, in taxes for their $2,000 TV. For once, the rich will be taxed while the poor will not be taxed up to the poverty level of sending. - do to the "Prebate" she evidently doesn't know about even though Mr. Alder mentions the "prebate."

Please check out http://www.fairtax.org prior to relying on the writing of one individual over the research done by very well informed economists, who built the FairTax outside of government oversight, and did it by using tax input information from numerous taxpayers from all walks of life and from four areas of the USA. They then test marketed the bill's concept with taxpayers who actually named the bill.