OPINION:
The “Fair Tax” is a fraud. We need a 10-percent “Tithe Tax” instead.
The Fair Tax is just more wealth redistribution, and it is a financial scam. It’s advertised as being “more progressive,” which means it will actually pay the working poor far more than what they would pay in the first place and will give them free Social Security and Medicare.
The prebate isn’t a refund of Fair Tax paid, it is a new $600 billion entitlement. The Fair Tax is a 40 percent to 70 percent sales tax that would spark a taxpayer rebellion and destroy our economy. It also contains several hidden taxes. For example, an additional 12-percent-plus is hidden by having federal and state or local governments pay it, and the new IRS that would come along with it could well be far more invasive than today’s IRS.
Seniors would start to pay for Social Security and Medicare again, with some even paying a second and third tax on earnings. Many middle-class seniors would pay more Fair Tax than income tax.
Instead, we need a flat income tax. This would have no deductions, exemptions or credits. It would be business income taxed to owners on a simple basis. I urge readers to call their representatives in Congress and let them know this is what they want.
STEPHEN C. ELDRIDGE
Cosby, Tenn.
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