Huckabee can't explain why Fairtax is based on a trillion dollar tax on city and state governments. Huckabee, nor any other Fairtax official, have ever told cities and states about this trillion dollar tax their governments would have to pay.

Boortz wrote, "The federal government will become our major taxpayer." Page 148 Fairtax Book
He refuses to explain how the government can pay itself a trillion dollars.
Bootz wrote "all cities and state goverments will have to pay taxes" -- even a wage tax on their "purchase of labor."
Bootz wrote "all cities and state goverments will have to pay taxes" -- even a wage tax on their "purchase of labor."
David Kendall: I don't see anything wrong with "asking" city and states to pay a trillion dollars to the federal goverment.
David refuses to explain why hidding something in the fine print, is "asking" city and state governments.
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Fairtax promise ARE wonderful: no IRS, no April 15, we get our full paycheck AND a check every month. The drug dealers and "under the table" folks will pay too! No favorties! We decide when to pay taxes, simply by what we buy. A simple personal sales tax, that makes all other federal taxes go away.And this will make us the "economic powerhouse of the world" said Neal Boortz.
No wonder people loved it. WE LOVED IT TOO. Then this happened:.
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Devil is in the details
The first oddity was in page 148 of the Fairtax book. "The federal government itself will become a major taxpayer." Nothing drastic, but odd. It doesn't explain how much, or how the federal government could even pay itself. We asked about that, and didn't get an answer that made sense. .
They told us "Oh that is just a bookkeeping thing, don't worry" Okay. Bookeeping thing. Odd that Boortz says they will be a "major taxpayer" but, okay.
Then from Boortz later book, "Fairtax The Truth: "All cities and states must pay to the federal government a massive tax -- on all their spending, including a tax on all wages they pay". All city and states pay WHAT? A tax on wages they pay? Wages? Really? A tax on wages?? Baffling! We asked more questions.
We got evasive odd answers.
How much taxes on wages? Doesn't say. Who pays that tax, the employee or the government? They wouldnt say. Was Boortz even right? They wouldn't say. They told us to read HR25. We did! Nothing in there about a tax on wages that we could find.
And what about the whole "only people pay taxes" thing?
We asked -- Show us 10 examples, Los Angeles, Chicago, Miami, New York, Knoxville, any ten cities, please. Show us how much those cities have to pay - so we can see if you applied this tax to WAGES as Boortz said.They wouldn't respond other than "Read our bill, HR25, its all in there"
We read HR25, over and over. Nothing in there clearly said wages are taxed. Okay, how about showing us a list of states -- surely you know how much states will have to pay. What is your research on how much the state of California will have to pay?
Again, no answer, other than. "Read our bill, HR25, its all in there "
Finallly, we figured the Fairtax for various cities ourselves, using the formula from Fairtax. The tax is 23% of non-education spending. Fairtax has two "exemptions" -- education spending, and foreign travel.
So we got hold of City of Los Angeles budget, subtracted what apparently was education spending. (This is the Fairtax forumla, not ours.) The result? Neal wasn't lying when he said government would be the MAJOR taxpayer! Just one city, LA, would owe a stunning 699 million dollars! We lowered that to 600 million. Even that is goofy high, preposterous. No WONDER they wouldn't give us the details!
Again and again, we have contacted Fairtax experts to tell us if our figures are close. Do you know what they replied: Read our bill, HR25, its all in there
If they really thought they could tax city and states, they wouldn't hide it.
How do their experts explain it?
David Kendall, official Fairtax spokesman, finally gave us an answer- sorta. Davis said I see nothing wrong with asking city and states to pay. That was his total answer! No number, nothing. Just that he saw nothing wrong with "asking"
But Fairtax didn't ask - they hid this in the fine print. That is the polar opposit of asking. WE asked David repeatedly to tell us how putting this massive tax in the fine rint, is asking. We are still waiting for his answer!Seriouslly, what kind of hustle is this? A trillion dollars from a tax on government, and you have to ask dozens of their "experts" to get any answer at all. When we finally showed them their OWN statements, David Kendall responds in a goofy way --"I don't see anything wrong with asking city and states to pay" Serioiusly, what the hello is wrong here?
The Fairtax Hustle
- Even today, Fairtax has never told the city government of Los Angeles that it would owe a stunning 600 million dollars a year to the federal government. All other cities would owe massive taxes, too.
- Fairtax never told the state government of Texas it would owe 8 billion dollars a year to the federal government. All other states would owe massive taxes too.
- Corporations laugh at Fairtax and have rejected it totally. Why did they reject it? See above - and below for answer.
- Wall Street Journal editors called it, essentially, a hoax. Why?
- Fairtax own research shows a personal spending tax would not bring half the amount Fairtax spokesmen claim. Why distort your own research?
- Fairtax leaders know their own plan is bogus, and have no intention of passing it. Why hide from hearings under oath? For 13 years -- and even now -- there is always some excuse. They could have had 50 hearings by now.
Actual statements, writings and principles from Fairtax spokesmen, edited for clarity and emphasis, put in Q and A form.
FAIRTAX EXPERTS: NEAL BOORTZ --- MIKE HUCKABEE --- DAVID KENDALL -- JAMES BENNETT --- ROSS CALLOWAY . We identify whose answer it is, when approproate, by parenthesis.
Q. Is Fairtax a tax on personal spending?
A. (Boortz) Yes, 23%.
Q. Your own research shows that a 23% tax on personal spending is not enough.
A. (David Kendall) That depends on how you define the phrase "personal spending."
Q. How do you define personal?
A. (Boortz, HR25,Kendall). We define the government as a person.
Q. You define government as a PERSON, so you can tax the government?
A. (Calloway, exact quote) Look at our fine print. It's in section 2(a) subsection 7.
......................
......................
Sec. 2 (a) 7: Person
.............
......................
Sec. 2 (a) 7: Person
.............
(7) PERSON- The term ‘person’ means any natural person,....... partnership, limited liability company, trust, estate, [any] government, or other legal entity (foreign or domestic.)
Q. So that is how you claim you can tax the government?
A. (Calloway, Kendall) You wanted to see where our legislation says we can tax the government -- there it is, our own legislation
Q. You put one word in your fine print, so you can tax the government? You can't be serious.
A. (Boortz, Bennett, Kendal, HR25) It doesn't matter if the government pays itself anyway.
Q. Doesn't matter? This is a trillion dollar tax, 40% of the entire plan?
A. Size doesn't matter -- it's a "wash".
Q. A Wash?
A. Yes, a wash. Like taking money out of your left pocket, and putting in your right pocket. You still have the money don't you? Government giving it to government. It's a wash.
Q. But this is a tax on city governments, county governments, state governments. The money goes to FEDERAL government.
A. So?
Q. So, its not a wash to LA or any of the 25,000 cities, or 4,000 counties. It's not a wash to the states.
A. Oh, Los Angeles will save 600 million too, so no need to worry. It's a wash for them, too. All the cities and states that pay this, will save that much. It's a wash.
Q. If you believe that, why not tell Los Angeles city about their 600 million dollar tax?
A.(Calloway, Bennett). We will, in good time.
Q. Why haven't you told any city -- there are 20,000 or so cities, how many have your told about this massive new tax?
A. We will explain this later in hearings. (exact quote - James Bennett) We wanted to just present the basics. Later we will supply full details.
Q. How much will you tax, say, the state government of Texas?
A. About 8 billion. (23% of Texas state government non education budget)
Q. The state government of Texas has to pay the federal government 8 billion?
A. Yes.
Q. All because of that one word in your fine print?
A. (Kendall, Calloway) We define person in more than one word.
Q. But you only used one word -"government" in that goofy definition, that has immense taxes, which you don't explain.
IF you believe that, why not tell Texas -- or tell anyone - about this massive tax?
A. We will in due time.
Q. Do you have any research that shows this "wash" theory isn't as goofy as your hiding the trillion dollar tax in your fine print?
A. We just know it's wash, it's obvious. They save that much.
Q. But is there any research - even goofy research - that supports your "wash" theory.
A. It's so obvious, we don't need research on that.
Q. Where do city and state governments get their money?
A. From people, of course.
Q. So people will be hit over and over and over under Fairtax.
A. So, they are hit over and over now.
Q. But you hide this.
A. (Kendall, Bennett, Calloway) No, we have it in our legislation, how can that possibly be hiding?
Q. Your own research shows your plan won't work unless you tax something besides personal consumption?
A. Exactly.
Q. Who did this research?
A. Beacon Hill.
Q So you could choose NOT to tax the government?
A. (Boortz, Kendall) Right, we could tax people more, a lot more, but people wouldn't like that, so we would rather tax the government.
Q. But only people pay taxes, the "government" has to pass those costs along.
A. (Kendall) We see nothing wrong with asking city and states to pay their fair share.
Q. First, you aren't asking, you are hiding. Second, doesn't matter what you ask, only people pay taxes.
A. (Boortz) We never promised it would be easy.
Q. But you promised it would be transparent and simple, and it's not either.
A. Depends how you define "transparent"
Q. You sound like Clinton -- depends on the definition of is.
A. Defintions are important. What is transparent to me may be gobbly goop to you.
Q. But nearly everything you put out to the public says your plan is a personal consumption tax.
A. We never said ONLY a personal consumption tax.
Q. But you gave that impression.
A. (Calloway, Kendall) You gotta read the fine print, we give the basic plan, we will fill in the details at the hearings someday.
Q. So your research isn't about the ability or sanity of city and state governments paying massive taxes?
A. (Fairtax document "What Rate Works") No, not a word about the ability or willingness or sanity. Just that government HAS to pay, for our math to work.
Q. Oh, I see. So show us the actual words in your Beacon Hill research that shows this.
A. (Bennett, Kendall) Sure -- its from
Taxing Sales under the FairTax:.............
2.2 Government Consumption Spending
Government consumption is included in the FairTax base in order to put personal and government consumption expenditures on an equal footing.9
Q. Do you have a link to that?
A. LINK HERE TO SEE FAIRTAX GOOFY "RESEARCH"
Q. Why doesn't is say "tax city and states" ?
A. Sounds better to say "put on equal footing" doesn't it?
Q. Does "put on equal footing" mean "tax"
A. (Kendall, Calloway)Yes.
Q. Even the title of your "research" is goofy.
A. How so?
Q. It says "What rate works"
A. So?
Q. It's really about WHAT you tax -- people, or government, or whatever. Why not title this "WHAT WE TAX"
A. I didn't name it.
Q. Everything about your plan is goofy -- deceptive fine print, deceptive researsh, absurd ideas that a trillion dollars that city and states have to pay is a wash -- it's all goofy. Eventually this would come out you can't hide this forever.
A. (Kendall, Calloway, Bennett) Well people can ask questions in hearings if we ever have them. And if they don't like it, don't vote for it. Simple.
Q. But why say it that way "put on equal footing"? Why not say we are going to tax them.
A. Sounds better, you have to ask them
Q. But didn't Fairtax claim to be "transparent".
A. If you read it closely and ask questions, it can be transparent.
Q. Did you ever tell anyone that government will pay taxes, or have you always hidden it?
A. Oh - Boortz mentioned it in two sentences, one sentence in one book, and then another sentence in another book.
Q. Show us those two sentences..
A. Sure, this is from page 148 of the Fairtax book "The federal government itself will become a major taxpayer"
Q. You said there were two sentences.
A. Oh yes, another book, years later. Page 138 of "Fairtax the Truth" I don't have it exact, this is from memory.
Q. Okay, what is it, best you can remember?
A. "Under our plan, all local governments, will pay to the federal government, a tax on all their spending, on all their purchases, on services and goods, including labor (wages).
Q. So in the backs of the books, in one sentence per book, Boortz did give us some clues.
A. Yes, so he wasn't hiding it.
Q. You mean you must PRETEND to tax the government, when you know perfectly well, you can not.
A. We don't call it pretending, we call it assuming city and states will pay the taxes that the law requires.
Q. What law?
A. Our law -- Fairtax, HR25
Q. What if city or states say no. We won't pay this.
A. They have to pay it if it becomes law.
Q. Well what if they refuse, are you going to send the army in to arrest a state?
A If cities or states won't pay it, then our plan is not operational. You will have to get another plan.
Q. But you said this was a tax on PERSONAL consumption.
A. We never said ONLY a personal tax.
Q. But you get about half the money from this tax on government. you knew this all along
A. It's not half, maybe 40%.
Q. You knew your plan can't work without your tax on government.
A. We never said government would be exempt.
Q. But ONLY people really pay taxes, why have this hoax of government paying it? You are hiding it..
A. (Kendall, Calloway, Bennet) It's in the bill. People can read it. How is that hiding?
Q. You don't think this is hiding the fact you get almost half your money from a tax that YOU KNOW is impossible?
A. It's not hiding -- I just showed you the fine print that says we define government as a person.
Q. Do you have a list of states, and what Fairtax estimates each state will have to pay?
A. No.
Q. Why not have a list of states, and what each would pay?
A. We just don't have such a list.
Q. So the ONLY way for city and states to find out, is to read your fine print VERY VERY closely?
A. (Bennett, Boortz) They can read our book.
Q. Your book hides it too.
A. (Bennett, Kendall) They can come to hearings we will have some day.
Q. Have you ever told the states, or cities, they will have to pay this?
A. (Bennett) No.
Q. So how on earth do you think they will find out?
A. (Calloway, Kendall, Bennett)They can read our bill.
Q. That's goofy and you know it -- plus, your bill HIDES it.
A. We don't consider it hiding.
Q. So whatever a state or city government spends, you tax that?
A. (Boortz, HR 25)Yes. Except what they spend on education.
Q. Do you have a list of things you tax?
A. No, we just tax everything a government spends, and give you the exclusions.
Q. You tax everything, other than the exclusions?
A. Yes, that way we don't have to make it clear how goofy this is.
Q. Okay, what do you exclude.
A. Education and foreign travel.
Q. Same with the federal government?
A. Sure, we pretend to tax the federal government too. This is necessary to fool stupid people.
Q. Whatever even the federal government spends, you tax that?
A. (Boortz, HR 25) Yes. Except what they spend on education and foreign travel.
Q. Even government wages - do you tax government wages?
A. (Boortz, HR 25)Yes. Except education wages.
Q. Do you charge a tax on military wages?
A. (Boortz, HR 25)Yes.
Q. Is this a tax on THE WAGES of city workers, prison workers, state workers, Congressional pay, all government pay?
A. (Boortz, HR 25)Yes.
Q. And this is done on the basis of your defintion of a person?
A. (Calloway, Kendal, Boortz, HR 25)Yes.
Q. Amazing. Total nonsense, total deception, total fraud.
You can not be serious.
A. (Boortz, HR 25) Oh yes, we can. And are. We never promised you a free lunch.
Q. You know this is goofy double talk, which is why you hid it.
A. (Boortz, Kendall, Bennett) I wouldn't call it hiding. We are waiting for the right time to explain it.
Q. No you had 13 years for that. What's stopping you from explaining it?
A. (Boortz, Kendall, Bennett) We will have hearings someday.
Q. You haven't told any city government, any state government, any government official anywhere about this.
A. (Boortz, Kendall, Bennett) We will in due time. We don't want to make this clear. It's goofy, and we know it.
Q. In due time? When - you had 13 years, you have done nothing but hide this goofy second tier.
A.( Calloway Bennett) In due time means at the hearings someday. Hearings we know will never happen.
Q. Why not make this clear now, or any time in the last 13 years.
A. (James Bennett) We believe in giving the big picture first, and explaining the details later.
Q. You think this trillion dollar tax on government is a detail?
A. (Boortz, Kendall, Bennett) We will explain it fully in due time.
Q. What if city and states say no way, that's crazy.
A. Then Fairtax is non-operational, it won't work. We don't care, we know this is a farce anyway.
Q. So if you can't tax city and state government, it's not Fairtax?
A. (Boortz, Kendall, Bennett) Right. Our research is based on collecting this money from all cities, counties, states, and the federal government.
Q. This is about half of your revenue, this massive tax on government.
A. (James Bennett). I don't think it's half, more like 40%.
Things they hid -- 80 billion dollar tax on military wages -- yes they tax government wages! The city government of Los Angeles would owe 600 million in to the federal government! The state government of Texas would owe 7-8 billion to the federal government. All cities and all states would owe fanataticly high taxes to the federal government -- all because Fairtax fine print put ONE WORD in a subparagrah. Cancer patients would owe billions, renters would owe billions. The list goes on, and on, and on.
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Why have corporations laughed at Fairtax?Q. You "include" government "consumption" to put it on "equal footing"? What does that even mean? Where will city and states get the money to pay this?
Why has Fairtax avoided hearings under oath?
Why did Mike Huckabee call Fairtax a "Magic Wand"?
Why did Boortz say the "government" will become our "major" taxpayer?
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| James Bennett: We wanted to explain the details later, in hearings |
Q. But 99.9999%of the time, you are saying Fairtax is on personal consumption.
A. (Boortz) We never said ONLY personal consumption.
QQ. We are going to get to HR25 fine print in a minute -- but you can't tax the government. Only people pay taxes.. .
A. (David Kendall, Neal Boortz) We see nothing wrong with asking city and state governments to pay their fair share.
Q. Asking -- how is this asking? Did you contact city or state governments?
A. (Bennett) No.
Q. So how is that asking?
A. (Ross Calloway, Jim Bennett) We put it in HR25.
Q. It's not in HR25, except in very strangely worded fine print. So how is that "asking"
A. (David Kendall, J.Bennett) It's "asking" because when we have hearings someday, city and states can voice their objections.
Q. That is what you consider "asking"?
A. (Kendall, Bennett) We didn't mean we would literally ask them. It's a rhetorical phrase.
Q. Is this why you never manage to have hearings under oath? Always some excuse?
A. (Boortz, Kendall, Bennett) We will have hearings someday.
Q. Have you invited any city or state officials to it?
A. (Bennett) Not yet, no.
Q. Let's talk about how much a given city would have to pay for your fairtaxes -- city governments have to pay, right?
A (Boortz) Yes, city governments pay.
Q. And they pay this on all their spending -- even on wages.
A. (Boortz) Yes, all their spending, even on wages. Except education, we don't charge a tax on education.
Q So how much money would, say, the city of Los Angeles have to pay?
A. (Boortz) That would depend on how much they spend.
Q. Okay, their non-education spending is, say 3 billion.
A. (Boortz) Three billion non-education spending, that would be 690 million. (23% of 3 billion = 690 million)
Q. You are kidding.
A. (Boortz) No, I said government would be a "Major" taxpayer - now you see what I mean.
Q. Not just Los Angeles, but every city - Dallas, New York, Chicago, Keokuk Iowa, Knoxville, every city?
A. (Boortz) Yes, every city.
Q. And every county government too?
A. Yes.
Q. Dade county, Florida, Cook County IL, Orange County California?
A. (Boortz) All counties. Yes.
Q. And all states? How much would California state government have to pay?
A. Depends on their non-education budget. 23% of their non-education budget, is the tax.
Q. So if California non-education budget was 50 billion, how much would their Fairtax be?
A. (Boortz). About 11 billion dollars, because 23% of 50 billion = 11.5 billion.
Q. Your plan calls for California state government to pay 11 billion dollars?
A. (Boortz) I told you, in that one sentence, the government will become a major taxpayer.
Q. But to city and states know this, does the public know it?
A. (Boortz) It's in our books, in those two sentences. And it's in HR 25 if you read it real close.
A. Balderdash?
Q. Yes, blatant nonsense, deliberate gibberish. Your plan is goofy, and you know it, right?
A. (Kendall) Not if we can tax the government, it makes perfect sense.
Q. But what if cities can't or won't.
A. (Boortz) Well they have to, they must.
Q. No, they don't "must". What are you going to do, send the army after them?
A. (Boortz) We pretend to expect they will pay per the law.
Q. What law? The Fairtax law?
A. (Boortz)Yes.
Q. Do you expect to fool people with this crapola?Q. That is balderdash
A. We have to far. I just made that up -- but it's true
Q. So you tax the Pentagon?
A. Yes. Fairtax document "Taxing Sales Under the FairTax
Q. Come on, I was kidding, you tax the Pentagon?
A. Yes. Fairtax document "Taxing Sales Under the FairTax
Q. Do you tax Medicare?
A. Yes.Fairtax document "Taxing Sales Under the FairTax
Q. I was kidding about that too -- you tax MEDICARE?
A. Why wouldn't we? Fairtax document "Taxing Sales Under the FairTax
Q. Do you tax state governments?
A. Yes per Neal Boortz
Q. So when you say "subject to" -- that means they gotta pay?
A. Right, well, don't say pay, we like to say "remit".per David Kendall
Q. How will Los Angeles city government possibly remit 600 million?
A. Oh, we save them that much, so we don't expect any problems with having them pay that.
Q. You save them that much?
A. Absolutely. We get rid of the embedded cost. They just pay what they do now, and 600 million automatically goes to the federal government.
Q. Aren't you just replacing your own embbed cost?
A. We don't see it that way.
Q. Were are you getting this "research".
A. Dale Jorgensen, a Nobel Prize winner, Yale Professor. He did the research on the "embedded" stuff.
Q. Doctor Dale Jorgenson?
A. Yes. We rely on his research.
Q. Actually, Doctor Jorgensen has said your plan can't work, that prices don't fall like you claim.
A. Well, Jorgensen later said people would have to take a big cut in pay, but we have a difference of opinion. But we believe he is wrong on that.
Q. So you believe the parts you want to, and publicize those, and just ignore his research that contradict what you want?
A. He is wrong on part, right on part.
Q. But how are you "asking" city and states to pay this -- it's in your fine print, it's hard to understand, even if you read it.
A. City and state government have people that can understand fine print, I assure you.
Q. But how are city and states going to accept or reject this? When do they get a chance to give their two cents worth?
A. You mean what if they don't want to pay it?
Q. Exactly, what if they don't want to pay it.
A. Then they can tell their representitives in Congress not to vote for it. per Steve Bennett
Did he say he would veto it?
A. No, but we know he would.
Q. Why not just have hearings so people can find out about it?
A. That's why we have books -- they can read those. Or read the bill. per Steve Bennett and Ross CallowayQ. Is that why you have avoided hearings for 13 years?
A. Why have hearings now? Obama would just veto it.Q.
Q. So you tax the Pentagon?
A. Yes. Fairtax document "Taxing Sales Under the FairTax
Q. Come on, I was kidding, you tax the Pentagon?
A. Yes. Fairtax document "Taxing Sales Under the FairTax
Q. Do you tax Medicare?
A. Yes.Fairtax document "Taxing Sales Under the FairTax
Q. I was kidding about that too -- you tax MEDICARE?
A. Why wouldn't we? Fairtax document "Taxing Sales Under the FairTax
Q. Do you tax state governments?
A. Yes per Neal Boortz
Q. So when you say "subject to" -- that means they gotta pay?
A. Right, well, don't say pay, we like to say "remit".per David Kendall
Q. How will Los Angeles city government possibly remit 600 million?
A. Oh, we save them that much, so we don't expect any problems with having them pay that.
Q. You save them that much?
A. Absolutely. We get rid of the embedded cost. They just pay what they do now, and 600 million automatically goes to the federal government.
Q. Aren't you just replacing your own embbed cost?
A. We don't see it that way.
Q. Were are you getting this "research".
A. Dale Jorgensen, a Nobel Prize winner, Yale Professor. He did the research on the "embedded" stuff.
Q. Doctor Dale Jorgenson?
A. Yes. We rely on his research.
Q. Actually, Doctor Jorgensen has said your plan can't work, that prices don't fall like you claim.
A. Well, Jorgensen later said people would have to take a big cut in pay, but we have a difference of opinion. But we believe he is wrong on that.
Q. So you believe the parts you want to, and publicize those, and just ignore his research that contradict what you want?
A. He is wrong on part, right on part.
Q. But how are you "asking" city and states to pay this -- it's in your fine print, it's hard to understand, even if you read it.
A. City and state government have people that can understand fine print, I assure you.
Q. But how are city and states going to accept or reject this? When do they get a chance to give their two cents worth?
A. You mean what if they don't want to pay it?
Q. Exactly, what if they don't want to pay it.
A. Then they can tell their representitives in Congress not to vote for it. per Steve Bennett
Did he say he would veto it?
A. No, but we know he would.
Q. Why not just have hearings so people can find out about it?
A. That's why we have books -- they can read those. Or read the bill. per Steve Bennett and Ross CallowayQ. Is that why you have avoided hearings for 13 years?
A. Why have hearings now? Obama would just veto it.Q.
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| James Bennett: We wanted to give the basics at first, and explain the details later. ----------------------------------------------------------------------------------- |
A. Of course, and we will pass a constitutional amendment to do so, that is part of our plan.
Q. The constitutional amendment was to get rid of the 16th Amendment.
A. Yes -- but also, so we can tax city and states.
Q. You realize that 3/4 of the states have to agree?
A. Yes.
Q. You think states will vote to pay massive taxes to the federal government?
A. Sure, when they find out how it helps them.
Q. Why has corporate America not supported your plan at all -- didn't that surprise you?
A. We were suprised corporations rejected out plan.
Q. You realize that 3/4 of the states have to agree?
A. Yes.
Q. You think states will vote to pay massive taxes to the federal government?
A. Sure, when they find out how it helps them.
Q. Why has corporate America not supported your plan at all -- didn't that surprise you?
A. We were suprised corporations rejected out plan.
Q. Let's talk about your research - what research did you do that city and states could pay this massive tax?
A. That was not one of our research parameters.
Q. What do you mean, you didn't research whether city or states could or would pay?
A. We assume they will pay according to the law.
Q. So you didn't research that, you just assume that?
A. We didn't research if people could or would, we assume that. So we assume government will pay too.
Q. Didn't real economist do a study on this Fairtax, and find it would be over 50%?
Q. What was the difference between their study, and your assumptions?
A. We have a much broader "tax base".
Q. Tax base?
A. Yes, basically we tax many more things than they do.
Q. So a "tax base" is what you tax?
A. Of course. And our tax base is broad so we can have a low rate.
Q. Can you give us an example?
A. Well, they don't tax cancer surgery -- we do.
Q. You tax cancer surgery?
A. Sure, we tax all medical spending, no exceptions.
Q. Anything else?
A. They don't tax city and state governments, we do.
Q. So they don't have this second tier, but you do?
A. If you insist on calling it a second tier, no, they don't have it, we do.
Q. Anything else?
A. They don't tax rent, we do.
Q. Anything else?
A. They don't tax prescription drugs, we do.
Q. Anything else?
A. They don't tax medicare or the Pentagon, we do.
Q. You tax the Pentagon?
A. Of course. Big revenue source. See the Fairtax Book - page 148, "The federal government itself will be a major taxpayer." See -- we don't hide it!
Q. Would we pay a tax on prescription drugs?
A. Yes
Q. Airline tickets?
A. Yes.
Q. Utility bills?
A. Yes.
Q. Food?
A. Yes.
Q. Rent?
A. Yes.
Q. Car insurance premiums?
A.
Q. Life insurance premiums?
A. Yes
Q. Day care expenses?
A. Yes.
Q. Tax on Cancer surgery?Q. Yes.
Q. Tax on Nursing home care?
A. Yes.
Q. Do you expect people to be shocked by this?
A. We expect to keep this hidden as long as possible.
Q. What happens if cancer victims can't pay, if they don't have the money?
A. They can pay.
Q. What if they demand an exemption?
A. There are no exceptions.
Q. What happens if they only make 30K a year, but the cancer surgery cost 150,000 dollars?
A. So?
Q. So? Their sales tax on that would be 40K, just on that, but they only make 30K. How is that even logical?
A. We tell stupid people, they save so much, it won't matter.
Q. You gotta be kidding, even if their surgery is cheaper, they STILL don't have 40K to pay the tax on it.
A. So? People believe whatever we tell them, people are gullible morons.
Q. Face it, you will have to allow some exceptions.Why not allow exceptions?
A. See what happens when you allow exceptions? You get 50 or 60% sales tax! Who want's that?
Q. What do you mean?
A. That JTC allowed exemptions for cancer and food and rent -- and even exempted city and state wages. No wonder they had to admit 50% sales tax.
Q. Well who wants a tax on cancer surgery, and funerals, and food, and rent?
A. We never promised you a free lunch, sure, some people will be hit pretty hard.
Q.But you even cancer patients who make less than 30K?
A. No exceptions for anyone.
Q. What if renters demand an exemption?
A. Let them demand, there are no exceptions. How are they gonna demand anything? We are not serious about this anyway.
Q. Can people demand an exemption for food?
A. No exceptions. Period. Sorry. Everyone gets a prebate.
Q. Does the prebate pay the tax on cancer and rent, and so forth?
A. No, the prebate is just 200 a month for everyone, down to 100 or so. Everyone gets a little something.
A. Is that going to be enough to pay the tax on cancer surgery, on rent, on medical costs, on food?
Q. It's enough to pay the taxes if you only spend 700 a month or so.Q.
Q. What happens when Huck has to fess up in Texas, that Texas state government would have to pay the federal government 9 billion dollars?
A. Huck won't fess up. This is all a farce. How much will it cost to send everyone 200 a month or so?
A. Bout 800 billion dollars.
Q. What? You are going to pay out 800 billion dollars? How do you pay for that?
A. We arent worried about that, this is all nonsense anyway. Yes. A. Yes.
Q. Dental bills?
A. Yes.
Q. Cable TV?
Q. Who is in charge of educating city and state officials about this.
A. We have no plans to educate city and state officials.
Q. Why not? You have massive taxes on city and states, but no one is going to educate them about it?
A. We just don't.
Q. Why would city and states go along with this?
1)We invite them back to clarify, correct, or expand their answers.
2) Q and A is culled from Fairtax spokesmen responses and statements.
3) Some of their answers seem pretty stupid. That is because -- while Fairtax sounds great at first, when they explain the fine print and "research," it necessarily sounds stupid. That is the nature of balderdash and BS. When it's exposed, it appears what it is -- nonsense.
.
We got our answers directly from Fairtax spokesman -- though they are not verbatim, they are the actual answers.
We have repeatedly invited Bennett, Kendall, and Calloway, to "revise and extend" their remarks, or show us where we misrepresented Fairtax. They have refused to do so as of this date (March 30 -1911)
They confirmed, repeatedly, that Fairtax has a massive tax on city, state, and local governments they confirm that this is NOT clear in the bill -- that you "have to put it together".
Mostly, they confirmed that they have NO intention or plan to tell city and state government officials about it!
BELOW IS AN EXACT QUOTE OF WHAT FAIRTAX SPOKESMAN SENT ME.
"Okay Mark, here it is. You are welcome!
‘(7) PERSON- The term ‘person’ means any natural person, and unless the context clearly does not allow it, any corporation, partnership, limited liability company, trust, estate, government, agency, administration, organization, association, or other legal entity (foreign or domestic.)
‘‘(a) In General- For purposes of this subtitle–‘(1) BUSINESS AND EXPORT PURPOSES- No tax shall be imposed under section 101 on any taxable property or service purchased for a business purpose in a trade or business.‘(2) INVESTMENT PURPOSE- No tax shall be imposed under section 101 on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose.‘(3) STATE GOVERNMENT FUNCTIONS- No tax shall be imposed under section 101 on State government functions that do not constitute the final consumption of property or services.
‘(1) PURCHASES BY THE FEDERAL GOVERNMENT- Purchases by the Federal Government of taxable property and services shall be subject to the tax imposed by section 101.‘(2) PURCHASE BY STATE GOVERNMENTS AND THEIR POLITICAL SUBDIVISIONS- Purchases by State governments and their political subdivisions of taxable property and services shall be subject to the tax imposed by section 101.‘(b) Cross References- For purchases by government enterprises see section 704.
‘(a) Government Enterprises To Collect and Remit Taxes on Sales- Nothing in this subtitle shall be construed to exempt any Federal, State, or local governmental unit or political subdivision (whether or not the State is an administering State) operating a government enterprise from collecting and remitting tax imposed by this subtitle on any sale of taxable property or services., Government enterprises shall comply with all duties imposed by this subtitle and shall be liable for penalties and subject to enforcement action in the same manner as private persons that are not government enterprises.‘(b) Government Enterprise- Any entity owned or operated by a Federal, State, or local governmental unit or political subdivision that receives gross payments from private persons is a government enterprise, except that a government-owned entity shall not become a government enterprise for purposes of this section unless in any quarter it has revenues from selling taxable property or services that exceed $2,500.‘(c) Government Enterprises Intermediate Sales-‘(1) IN GENERAL- Government enterprises shall not be subject to tax on purchases that would not be subject to tax pursuant to section 102(b) if the government enterprise were a private enterprise.‘(2) EXCEPTION- Government enterprises may not use the exemption afforded by section 102(b) to serve as a conduit for tax-free purchases by government units that would otherwise be subject to taxation on purchases pursuant to section 703. Transfers of taxable property or services purchased exempt from tax from a government enterprise to such government unit shall be taxable.
BELOW is Fairtax "economist" tellng us "What percentage works" ---- it is not research, at all, it is ASSUMPTIONS.
Read it. They sneak in the bullshit that they will "put government spending on equal footing " with personal consumption.
It's bullshit, it's sneaky shit, and its goofy, and they know it that is exactly why they hid this shit.http://people.bu.edu/kotlikof/BHI-LK%20Taxing%20Sales%20under%20the%20FairTax-%20What%20Rate%20Works%209-25-06%20FINAL.pdf
It is saying - IF we can tax the government IF we can tax cancer patients, IF we can tax poor people, IF we can make every city government pay, every county government pay, every state government pay -- then we can have a 23% tax.
Only, they forgot to include the IF -- So these are ASSUMPTIONS which they hope stupid people accept as "research"
Taxing Sales under the FairTax –
Neal Boortz, the Fairtax Book, page 148 "The federal government itself will become a major taxpayer."A. We don't hide it, we just emphasize the personal consumption tax. That's what most people care about.
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| Neal BOORTZ "Government is Our Biggest Taxpayer" |






Well, if they are going to make government pay 60% of it's own revenue -- why not 61%? Why not 70%?
ReplyDeleteWhy not just make the government pay all it's own revenue by taxing city and states even more?
Jim --- why shouldnt city and state governments pay massive taxes?
ReplyDeleteJimmy -- one reason is THEY CAN'T. They would have to get the money from someplace. Is that to hard for you to grasp?
Jimmy -- for another thing, they won't. They won't agree to it. What are you going to do, put them in jail?
Jimmy -- for another thing, you would have to TELL them first. You can't just send them an email and say - pay us two trillion.
Jimmy -- how can this be transparent, if no cities or states even know about this massive new tax.
Jimmy -- do you grasp why no corporations are for this farce?
Jimmy -- do you grasp why Fairtax has avoided hearings under oath for 13 years?
Jimmy -- so us the research about how cities and states will pay these taxes. Show us the research Fairtax did about it, okay? We want a list of states, and how much their estimated taxes are.
Fairtax had to research that --right? YOu had to add up the taxes from state governments, right? Otherwise, how would you know how much revenue would come in that way?
Show us the research Jimmy. There is none, because it's all bullshit.
See "Taxing Sales Under the FairTax: What Rate Works?" By Paul Bachman, Jonathan Haughton, Laurence J. Kotlikoff, Alfonso Sanchez-Penalver, and David G. Tuerck, Tax Notes, November 13, 2006.
ReplyDeleteSee Table 1 at p. 664; discussion at p. 666.
See also Footnote 20 on p. 671 where the economists take $403 billion out of the state and local government tax base for education expenses.
See also the discussion at p. 674-676 concerning the effects on state and local Government.
Seeker,
ReplyDeleteYou made one blunder. You didn't ask me! I do not know whom your dialog partner was, but I doubt that person was a true representative of FairTax.
Next time, ask me. I am the Secretary and a Board Member of the Fairtax America Support Team, "FAST," a group officially sponsored by Americans for Fair Taxation that organizes and manages the FairTax grassroots effort. I suppose that makes me as official as they get. FAST started last September. We are working on sume pretty exciting stuff.
But now it's my turn to train the spotlight on you. You obviously don't like the FairTax. Tell me then what you are for - and defend it. I think we both agree that today's tax code is indefensible. I look forward to hearing something constructive from you.
~Jim Bennett
Have you really examined the Fairtax?
ReplyDeleteI don't mean the hype generated by Fairtax itself, I don't mean the claims and promises by Fairtax leaders.
I mean the fine print. The "rest of the story?"
Really, have you looked at it objectively? Critically?
You may or may not hit bulls-eyes on every other political topic, but on this one, you may need to look again.
As Bertrand Russell said "Two plus two equals five, therefore I am the Pope".
Did you know the Fairtax fine print shows it's a massive new tax? Each year, a trillion dollars or so of the federal revenue does not come from the "people tax" at all.
Fairtax math counts about a trillion dollars of yearly revenue as coming from NOT the tax on people that they (sorta) describe in their books and videos.
There is ANOTHER tax, that they do not mention in their videos and books. At least, they didn't mention it for the first ten years.
They they mentioned it in ONE sentence.
They didn't mention it in any speech, or any video, or include it in any article for the general public.
They didn't mention this trillion dollar revenue stream in any public meeting, in fact, it's quite reasonable to assume they hid this intentionally.
It wasn't a million dollar mistake. It was and is a trillion dollar deception. You don't hide a trillion dollar deception by accident or honest error.
Now, maybe this separate tax is legitimate (and maybe cows fly). Maybe they can get this extra trillion dollars.
Fairtax leaders -- when I contacted them about this separate and hidden tax --- defended the tax tenaciously. They insist they WILL get this trillion dollars, though they claim it is more like 600 billion.
They had no explanation for why it was so hidden, but they claimed it was essential, that without this separate tax, their plan falls apart.
Without this separate tax, the "people" tax would be much, much higher.
In fact, if they could not enforce this separate tax, for 600 billion, then this would not be the "Fairtax" and they would have nothing to do with it.
http://fairtaxfineprint.blogspot.com/
The three main points
1) There is deceptive fine print in Fairtax
2) The fine print shows a fundamentally bogus premise of Fairtax, which renders it absurd.
3) Fairtax leader defend the bogus premise, and offer no explanation why they hid it.
Much of the statements in the Q/A listed above are false. There are some great resources here: http://www.youtube.com/user/FairTaxOfficial
ReplyDeleteIt is not fine print and it isn't hidden. The Fairtax is a tax on all new goods and services.The county and state don't pay the taxes, we the people pay the taxes when we buy new goods and services. When the county and state buy equipment and goods to run the government that is a business to business expense and is not taxed. We pay the tax when we purchase the service from the government. That will put the government on equal footing with the private sector. The government just might find out that the private sector can can do many of the services cheaper than the government can.
ReplyDeleteWhen the Fairtax is enacted the government will be able to lower taxes because they will save the 7.65% that they pay for every employee for the FICA tax and how much will they save by out sourcing many jobs to the private sector????
The Fairtax Tax is not perfect but it is far better than what we have now or any other proposal.
The fairtax is for goods and services that are "final consumption". When governments pay pensions or social security payments, that would not be final consumption (in my mind) since the person receiving those payments would still buy goods and services with those dollars. Assuming the city/county/state buys something (road, building, or office supplies) then they would pay the tax on those items as a complete end item. So a $5 million dollar road would add $1.150 million to the final price. Is that any different than some of the "cost overruns" we have seen on things they have done in the past? I would really need to thing about this some more.
ReplyDeleteFor really full discloser -- they would tell you it's all BS.
ReplyDeleteThere was no "research" by Fairtax -- it's all nonsense. Utter nonsense.
WHy do you think they hid over a trillion dollars in taxes?
Why do you think they told you only PEOPLE pay taxes -- but pretend governments do too?
Come on- wake up. You have been lied to.
Why do you think corporations laugh at Fairtax? Why do you think Fairtax leaders have avoided hearings under oath for 13 years?
Why do you think they hid this 1+ trillion dollar tax on government?
Seeker, no system will ever be perfect. Fair tax is better than what we have now and there is currently no better solution.
ReplyDeleteChad, you dumb ass, Fairtax is a total fucking farce you idiot.
ReplyDeleteIt's not even a plan, much less a solution.
Neil Boortz does not understand the rules about taxing governmental operations in a consumption tax environment. You tax them when the government sells, not when it buys. Revenue neutrality is not enough - expenditure neutrality is required - however, your research shows that it is the intent of the Fair Tax organization to force across the board spending decreases in government spending and hiring by 30%. As I said in 2008, that is treason in wartime.
ReplyDeleteThe question of taxing government is an intersting one.
ReplyDeleteThe VAT literature on taxing things the government sells is quite developed.
I do not believe in single tax solutions, since they make rates ripe for evasion. I suggest a VAT, a business receipts tax (which employers can offset with deductions), social security OASI payroll taxes and an income surtax on wage, non-wage and inherited income (but not assets).
The VAT literature is already well developed on taxing government and non-profit entities. Payroll taxes and income surtaxes would not change.
The business revenue tax would likely stay in place in the same way it would for non-profits, except that most of the federal BRT would eventually be taken over by the state to fund non-retirement payments to individuals and health care benefits (including mental health care - and mental health care in lieu of incarceration). Businesses would also be able to offset contributions to alternative providers, like religious charter schools and religously sponsored adult literacy programs replacing welfare.
If enough businesses go the privatization route, the Business Revenue Tax would collect little and there would be few state employees to tax anyway.
This is where my plan is better than the Fair Tax. In the FT, every thing must come through government, even though FT sponsors claim an anti-government bias. Flat taxers are the same way. They both wish to radicalize people against government spending but they kill all alternatives to it, making their approach logically inconsistent.
Of course, for agruments sake, lets say nothing is privatized. In this case, the federal government would give a PILT to states for business receipt taxes it would otherwise have paid as income taxes for employees, while local government would pay the tax. Of course, the two might actually cancel each other out, depending upon tax rates and the number of employees on each side. If the numbers are close, the fiscal impact of cross taxing would be minimal - but it certainly would not raise additional revenue to justify Fair Tax rates.
I knew about the federal angle, but not the local one. They seem oblivious to the possiblity that their perfect little plan will never be enacted - but that any momentum they create will lead to a VAT, a VAT-like business receipts tax and a residual income tax on the wealthy. Huckabee says he likes Social Security privatization, but it is very difficult to do this in a Fair Tax environment. It is much easier to do it if you keep the tax - see my libertarian tax plan posting from last week.
ReplyDeleteOf course, I have probably used too many words for most Fair Taxers to get through the thoughts.
ReplyDeleteLocal governments would pay embedded business receipts taxes and VAT when buying things from businesses, but should only collect VAT when they are the seller. Governments don't sell much and leaving education tax free, as Fair Tax does, complicates things just a bit.
ReplyDeleteJohn, wrong idiot. Its on wages you stupid shit - how is that a purchase? All military wages, moron. In fact, you stupid shit, it's almost a trillion dollars.
ReplyDeleteBut guess what you stupid shit, government can not pay ANY taxes, because only PEOPLE pay taxes.
Corporate taxes were a scam, a "cruel hoax" because only people pay taxes, Fairtax told us.
Well, dumb ass, this "tax on government" is far goofier, far more hidden, and 5 times as large.
Do you grasp any of this you stupid shit?
You are being scammed you dumb shit.