Evaluation of the policies of George W. Bush and his Republican conservatives on America.
Published on November 29, 2007 By COL Gene In Politics


Last night several candidates talked about the so called “Fair Tax”. That is a proposal to replace Federal Income, Medicare and Social Security taxes with a sales tax up to 30%. It was touted as FAIR which is a lie pure and simple. This is another Conservative plan to further lower the taxes on the wealthy.

Let’s take a look at just what a 30% sales tax would do.

The wealthy taxpayers only spend a portion of their income. Any income that they did not spend would escape this tax. A person with an annual income of $500,000 who spent $250,000 would pay taxes only on the $250,000 and would have an effective tax rate of 15%. A person with an income of $50,000 who most likely spends all of their income would have an effective tax rate of 30%.

A person with a $500,000 annual income pays $14,500 in Medicare taxes; $6,500 in Social Security Taxes and about $125,000 in income taxes for a total of $146,000. If they spent $250,000 of their $500,000 income under the Fair Tax they would pay $75,000 in tax (30% of $250,000). Their taxes would be cut in half!

A person making $50,000 pays $1,450 in Medicare; $3,200 in Social Security and $3,000 in income taxes for a total of $7,650. Under the Fail Tax they would pay $15,000 (30% of $50,000) Their taxes would be doubled!

In addition, how the low and middle income tax payers would pay this increased tax is a mystery!

YES this a FAIR Tax for ONLY the WEALTHY!

Comments (Page 3)
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on Nov 30, 2007
We balance the budget, set aside about $200 Billion per year to pay down the debt,


See, now THOSE parts of your plan I can agree with, Gene.
on Nov 30, 2007
Reply By: Gideon MacLeishPosted: Friday, November 30, 2007
We balance the budget, set aside about $200 Billion per year to pay down the debt,
See, now THOSE parts of your plan I can agree with, Gene.


I am glad however to accomplish that objective will take a lot more revenue then is currently being generated from the tax rates in effect. We have been willing to spend but unwilling to pay. A prime example is the Iraq War. In all other wars there was an increased tax to pay the added cost. Of the $4 Trillion dollars that Bush will add to the National Debt, about $1 Trillion is because of the Iraq war.
on Nov 30, 2007
Another point is the cost of the war. I have said we have borrowed about a trillion dollars. I have also said the total cost of the Iraq War will be about $2.4Trillion. The difference is that total coat and the cost so far. Bush only uses what we have spent to date. However the following costs that will be paid AFTER Bush leaves office are also because of the war:

VA Costs $700 Billion

Equipment $200 Billion

Interest on the trillion we have borrowed-- $50 Billion per Year. In ten years we will spend another $400 Billion in interest.

That is a total of $1.4Trillion added to the $1 trillion and the result is the $2.4 Trillion overall cost. If we have not repaid the Trillion we borrowed over the next ten years, there will be even more interest!
on Nov 30, 2007
Ability to pay MUST be part of any tax.


LOL.  Gene, if people can afford iPods, TV's and all the other stuff I saw them buying last Friday, then they can afford a minimal tax if it's that important.

Just more class warfare on your part.


on Nov 30, 2007
All the people that keep bitching about the wealthy need to get a new arguement. Why should they need to pay more in taxes when it is the lower income that uses more of the tax money with welfare, food stamps, medicare. If you dont like being in the lower income bracket do something to get out of it. Dont just keep bitching about the people who have.
on Nov 30, 2007
Reply By: Island DogPosted: Friday, November 30, 2007
Ability to pay MUST be part of any tax.
. Gene, if people can afford iPods, TV's and all the other stuff I saw them buying last Friday, then they can afford a minimal tax if it's that important.Just more class warfare on your part.


The amount spent on these items is not the issue- It is Housing, Food, Gas and other energy costs, health care and other insurance.

Reply By: ncjessicaPosted: Friday, November 30, 2007All the people that keep bitching about the wealthy need to get a new arguement. Why should they need to pay more in taxes when it is the lower income that uses more of the tax money with welfare, food stamps, medicare. If you dont like being in the lower income bracket do something to get out of it. Dont just keep bitching about the people who have.


Let me give several reasons:

First the wealthy got the BIG tax Cuts that were NEVER justified because there was no SURPLUS to return to them as Bush claimed.

Second they can afford to pay a little more for the benefit of the country that has enabled them to become SO WEALTHY!

We need to added money to balance the budget and pay down the debt!



on Nov 30, 2007
What does income have to do with ability to pay? If a person makes a million a year, but has $1.1 million in debts and expenses he has LESS ability to pay than someone who makes $20,000 a year but only $10,000 in debts and expenses.

That's one of the many problems with class warfare arguments, it assumes people who make more money, have more expendable income.
on Nov 30, 2007
The amount spent on these items is not the issue- It is Housing, Food, Gas and other energy costs, health care and other insurance.


It is the issue.  If America is so bad off as you claim, and peopel are so poor and need help, then the money they spend could be used to pay taxes, not for entertainment purposes.


Second they can afford to pay a little more for the benefit of the country that has enabled them to become SO WEALTHY!


Socialist gene.  Telling people what they should pay.



on Nov 30, 2007
Socialist gene. Telling people what they should pay.


also telling them what they can afford without meeting them
on Nov 30, 2007
I still think it's ironic that Gene thinks other people should be paying more than he is, because they make more... but he doesn't think HE should be paying more taxes than me, just because he makes more.
on Nov 30, 2007
How has this country enabled me to be wealthy. I worked to get where I am. I paid fully for my education. I struggled and did everything possible to get where I am. I didnt get any help from the government. There are the few that just get lucky and dont have to work hard but for the most part the upper class and wealthy worked very hard to get where they are. They work just as hard as the lower class. It's not like money is just thrown at them. If you are in the lower class bracket you have a wide variety of programs that can help you. And how is that paid for. With tax money. So why should the people who dont need the help be made to pay for most of it?
on Nov 30, 2007
And how is that paid for. With tax money. So why should the people who dont need the help be made to pay for most of it?


this is what a liberal will say. because
on Nov 30, 2007
I am the furthest thing from a liberal.
on Nov 30, 2007
People keep saying thay we should keep the tax system that we right now. It obviously isnt working. And even if we raise taxes just on the rich it wouldn't go towards the deficit. They would just find something else to spend the money on. If we had the fair tax no one could get out of paying taxes. Including illegal immigrants.
on Nov 30, 2007
Gene's biggest problem with the "fair tax" is it doesn't discriminate against "the rich". Bigots are always pissed off when they can't discriminate against their target group.
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