Notification – I want to renounce my previous posts where I have advocated for the so-called “Fair Tax”. You can see a variety of posts here.
I thought it to be the most just option because frankly I consider the income tax as we have it to be IMMORAL. Here’s why:
Suffice it to say our current “income tax” scheme is intrinsically unjust because it taxes individuals and businesses on entirely different principles. Businesses are taxed on “profits” after all necessary maintenance expenses including the deduction of other taxes paid, all operating expences, depreciation, etc. On that basis, no individual would ever pay an income tax because “profit” cannot by definition be determined until death. Until that point, all revenues are being used for maintenance and upkeep of the “individual = business”. Any year end “savings” that might be taxed as evidence of “profit” are, to use a business term, simply a fund against future expenses and not a genuine profit at all.
As I suggested elsewhere: “On what principle then does a tax on personal income and purchases operate? It operates on one that reduces workers to the status of chattel, i.e. slaves owned by the state.” No other possibility exists to explain the discrepancy.
For the same reasons a tax on sales is likewise immoral in principle. (I’m not saying to not pay your taxes, I’m just discussing how true reform should proceed. Until it does, don’t ask for trouble!)
In addition the so-called “Fair Tax” would boost identity theft as every self – respecting crook (to quote John Medaille) would have at least 10 identities to get 10 “prebate” checks monthly under the plan. The fraud would be astronomic.
But worse, the impact would be unfair a greater percentage of income from common people would fund the government and the so-called “Fair Tax” does not address other inequities in the tax system either as taxes are administered locally.
We need one simple, single, truly fair tax based on discernable market values.
But the main reason as far as this blog is concerned is that it is this type of plan that lowers real estate opportunity costs and allows more families to develop work at home lifestyles and employment.
Here’s a better alternative and a Truly Fair Tax – The Case Plainly Stated by H.F. Ring
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