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	<title>Comments on: Dutchman3 &#8211; GeorgiaTex</title>
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	<description>Northeast Georgia...and other stuff</description>
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		<title>By: Dutchman3</title>
		<link>http://northeastgalinks.com/blog/2008/09/22/dutchman3-georgiatex/comment-page-1/#comment-26</link>
		<dc:creator>Dutchman3</dc:creator>
		<pubDate>Tue, 23 Sep 2008 05:52:41 +0000</pubDate>
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		<description>Dennis,

Keep doing your homework.  I don&#039;t think you are quite up to speed yet?

In response to your three comments:

(1)  There isn&#039;t one economist that is on record as thinking that the Fairtax 23% rate works.  Even the group paid by AFFT to do a base/rate study concluded that 23% wouldn&#039;t work unless federal discretionary spending was reduced.  And the latest study from the Baker Institute shows that the rate would have to be more like 28% (39% exclusive) to be revenue neutral.

(2)  GeorgiaTex can speak for himself, but his point #2 has nothing to do with compliance.  I certainly agree with you that the current tax code is cumbersome at best, but his point was that people will avoid paying taxes by buying used, and there is nothing the government can do about that.  _Perfectly legal, and could drastically reduce federal revenue.  My personal example is that rather than buy a new car every two years, I would very likely purchase an extended warranty and drive the car for ten years.  What would that do to tax revenue if many people did the same thing?  Frankly, I believe that legal tax avoidance may be a larger issue than illegal tax evasion.

(3)  What I believe he is saying is that as a percent of income, the wealthy will pay less federal sales taxes than the middle class.  Studies seem to show that the rich will fare far better under the Fairtax than under current law.

Good luck in your quest for information.  At least you aren&#039;t simply reading back the marketing junk in the error filled two Fairtax books.</description>
		<content:encoded><![CDATA[<p>Dennis,</p>
<p>Keep doing your homework.  I don&#8217;t think you are quite up to speed yet?</p>
<p>In response to your three comments:</p>
<p>(1)  There isn&#8217;t one economist that is on record as thinking that the Fairtax 23% rate works.  Even the group paid by AFFT to do a base/rate study concluded that 23% wouldn&#8217;t work unless federal discretionary spending was reduced.  And the latest study from the Baker Institute shows that the rate would have to be more like 28% (39% exclusive) to be revenue neutral.</p>
<p>(2)  GeorgiaTex can speak for himself, but his point #2 has nothing to do with compliance.  I certainly agree with you that the current tax code is cumbersome at best, but his point was that people will avoid paying taxes by buying used, and there is nothing the government can do about that.  _Perfectly legal, and could drastically reduce federal revenue.  My personal example is that rather than buy a new car every two years, I would very likely purchase an extended warranty and drive the car for ten years.  What would that do to tax revenue if many people did the same thing?  Frankly, I believe that legal tax avoidance may be a larger issue than illegal tax evasion.</p>
<p>(3)  What I believe he is saying is that as a percent of income, the wealthy will pay less federal sales taxes than the middle class.  Studies seem to show that the rich will fare far better under the Fairtax than under current law.</p>
<p>Good luck in your quest for information.  At least you aren&#8217;t simply reading back the marketing junk in the error filled two Fairtax books.</p>
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