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Archive for the ‘FairTax’ Category

Another look at the FairTax proposal…

Posted by taxguru on March 27, 2010

The Fair Tax Solution – Book Review – A new book by Ken Hoagland.

One of the big selling points of the FairTax plan was the elimination of the IRS. That just became much more difficult with the increased powers given to the IRS to enforce our new socialized medicine schemes.

http://rcm.amazon.com/e/cm?t=taxfreeexchacorp&o=1&p=8&l=as1&asins=1595230602&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr

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Posted by taxguru on April 22, 2008

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FairTax Cult?

Posted by taxguru on December 20, 2007

That’s what Jay Bookman of the Atlanta Urinal-Constipation thinks it is.

Obviously, Neal Boortz has a very different opinion on this.

 

 

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Very wishful thinking…

Posted by taxguru on December 20, 2007


(Click on image for full size)

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Both sides of the Fair Tax debate

Posted by taxguru on October 4, 2007

The Lies:

FairTax is anything but – From a nut job in Kansas City

FairTax Is Pure Fantasy – More spurious attacks from Bruce Bartlett, who has yet to apologize for his idiotic claims that the FairTax is a Scientology plot.

 

The Truth:

A 59 minute video of a presentation by John Linder and Neal Boortz.  I just finished listening to the entire thing.  John Linder mentions that we CPAs are strongly in favor of this idea so that we can use our skills for more useful purposes than protecting clients from the IRS, something I have long been saying.   

 

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Losing Roth IRA tax break?

Posted by taxguru on September 18, 2007

Q:

Subject: Fair Tax & Roth accounts?

How is the Fair Tax supposed to integrate with Roth accounts? These are *supposed* to be tax-free upon withdrawal. The Fair Tax represents a very large stealth tax increase on these accounts.

A:

There’s no way to make such a radical change in the tax system without also affecting the results of tax motivated transactions. 

This is why I have always been critical of plans by people to convert conventional IRAs to Roths.  Paying real tax money now for promised tax savings down the road has never felt like a good idea because there is no guarantee that the tax free aspect will survive the whims of our rulers in DC.  While I do support the concept of the FairTax, I’m not as worried about it messing up Roth IRAs as I am about our rulers instituting a means test for taxation of Roth IRA income in the same way they did for Social Security recipients.

Thanks for writing.

Kerry Kerstetter


Follow-Up:

I did it because (a) I had relatively low tax cost since I converted during a year when I was unemployed, and (b) I won’t be making any more contributions to the account. You’re right about their tendency to take away what they have given when their lack of restraint catches up to them. I shudder at the thought of  Hilary as President and a Democrat-majority Congress.

 

A means test? That would be horrible! Of course, that wouldn’t raise the kind of revenue the IRS expects. The means test only screws middle-income taxpayers. Low income (though with non-indexed income thresholds this becomes progressively less meaningful) people won’t be affected, assuming they even have a Roth account, and people with plenty of non-Roth income won’t have to take distributions. To give means testing real sharp teeth you’d need to make Roth IRAs subject to RMD.

 

 

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Posted by taxguru on September 13, 2007

Fear of the FairTax – Neal Boortz takes on Bruce Bartlett’s attacks against the FairTax.

 

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Posted by taxguru on September 7, 2007

Dianetics, the Tax Plan – Bruce Bartlett isn’t slowing down in his attempts to discredit the FairTax by trying to associate it with Scientology. It’s a bit of a stretch to claim that just because the Church of Scientology didn’t like the IRS and proposed ways to abolish that agency, that anyone who also proposes doing away with IRS is a fellow space traveler with the likes of John Travolta and Tom Cruise. I would hazard a bet that if Americans were polled on what agencies they would like to see eliminated, IRS would be at the very top. Does that make everyone who wants to say goodbye to IRS a Scientologist?

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Posted by taxguru on August 31, 2007

The FairTax – distortions and lies – Another response to Bruce Bartlett’s hatchet job on the FairTax proposals.

 

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Posted by taxguru on August 26, 2007

Fair Tax, Flawed Tax – Bruce Bartlett on the attack against the FairTax plan. If northing else, it’s good to see this as an openly discussed issue in the lead-up to the presidential election.  I’m sure we’ll hear and see the rebuttal to Mr. Bartlett’s comments from Neal Boortz before long, especially this item, which I had never heard before, and suspect is bogus:

It was originally devised by the Church of Scientology in the early 1990s as a way to get rid of the Internal Revenue Service, with which the church was then at war (at the time the IRS refused to recognize it as a legitimate religion). The Scientologists’ idea was that since almost all states have sales taxes, replacing federal taxes with the same sort of tax would allow them to collect the federal government’s revenue and thereby get rid of their hated enemy, the IRS.

 

[Update]  Neal Boortz actually posted his response to the Scientology accusation in a rare Sunday posting to his blog

SCIENTOLOGY?  ARE YOU KIDDING ME?

Frankly, it looks to me like some K Street opponent of the FairTax got to Bartlett, and Bartlett, or one of his researchers, simply failed in their due diligence. It takes no time at all on the Internet to debunk this absurd notion.  My guess is that Bartlett will be issuing an apology to Leo Linbek, Bob McNair, John Linder, Americans for Fair Taxation and hundreds of thousands of FairTax volunteers before too many day pass.

You’re asking me if I will address this on Monday’s show?  Absolutely.  See you there.

 
This should be interesting.  I must have missed the vocal support of the FairTax plan by such A-List Hollywood celebrities as Tom Cruise and John Travolta. 

 

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