Bills-Soapbox

Dirty Political Season

You expect the liberals to use the 23% consumption tax associated with the Fair Tax Plan, HR 25, as a talking point to smear a conservative opponent; However this particular ignorant tactic is now being used by one conservative Republican to smear another conservative Republican in the Florida Governor Primary.

One of the Political Action Committees supporting Adam Putman is running ads accusing Ron Desantis of voting to add 23% to the price of everything by cosponsoring House Bill 25, H.R. 25 or The Fair Tax Plan.

This is why I have a problem with PAC ads that only give you a small piece of information and use it to make the opposition look bad. It is true that the Fair Tax Plan would create a 23% national consumption tax. However that isn’t the whole story… The Fair Tax Plan would also eliminate all personal income taxes. capital gains taxes, employment taxes, gift taxes and the death tax. It would also create a pre-bate that would reimburse, at the beginning of each month, the taxes that would be paid on purchases up to the poverty level based on family size regardless of income level.

So where would that leave the average Joe? He’d be getting a paycheck every Friday that was void of all those tax deductions. If his family income is at or below the poverty level for his family size the prebate would reimburse him/her for the consumption tax that they would expect to pay which would effectively mean they have a tax liability of 0%… zip, nada.

If the idea that the Fair Tax got is name from the word Fair hasn’t sunk in yet let me throw out another example; lets say you throw a birthday party for your daughter and invite a couple dozen of her friends. The cost of the party ends up being $100. The grocery store is going to send the federal government $23, which is the 23% inclusive consumption tax mandated by the Fair Tax Plan (of which the $23 may have already been given back to you as part of your monthly prebate.)

Now imagine that Bill Gates is also throwing a birthday party for his daughter and invites a couple of dozen of her friends. His cost for the party ends up being $10,000 (pocket change for Bill Gates.) The food vendors/caterers would be sending the federal government $2,300, the 23% inclusive consumption tax, of which $23 has already been given back to the Gates household through the prebate.

The average Joe buys a used boat for $1,000… no consumption tax is due because the tax is only collected on new goods and services. Bill Gates buys a new boat, actually a 100’ yacht and pays $2,500,000. The government collects $575,000 in taxes.

If you can’t see that the Fair Tax Plan would be the best thing to ever happen to the citizens of this country then you deserve to be ruled by the lying deceitful  morons that we seem to constantly send to Washington. I’d like to see Ron Desantis counter the ads with the truth about the Fair Tax… Unfortunately he’s most likely too busy running his own smear campaign to care if anyone actually has accurate information to make their decision on when they vote.