Update: The FairTax Crafters Finally Answer Me

Here's my last article on some sort of a response.

Now, here's what Congressman John Linder wrote me yesterday:

Thank you for contacting me regarding H.R. 25, the FairTax. I appreciate hearing from you.

Under the FairTax, when you purchase a used item at a yard sale, thrift store, or auction there will be no tax imposed and therefore, the depreciation or market value of the item is not important. The FairTax only imposes the 23 percent tax on the sale of new goods and services purchased for personal use.

Thinking now about excise and property taxes, the FairTax eliminates all Federal income-related taxes. It does not eliminate Federal excise taxes on items such as cigarettes, alcohol, or gasoline. It also does not eliminate property taxes, which are imposed and collected by state and local governments, not the Federal government.

Concerning an increase in the tax rate, I believe that the American people ultimately control our tax policies. Congress could increase the FairTax rate, just as they can and have raised the income tax rates many times over the last 90 years. Americans must remain informed and involved and continue to elect individuals that will serve their interests in Congress, and hold those who do not adequately represent their beliefs accountable. However, if individuals continue to re-elect Members who raise tax rates they use their vote to support those rate increases.

Under the FairTax, sales tax will be charged on the sales of all new goods and services, including those sold over the Internet. A principle element of the FairTax is to treat personal consumption equally regardless of how the consumer purchases the item in question. Today, some Internet-based companies have a pricing advantage over traditional retail stores, and the FairTax eliminates this advantage by treating all such purchases uniformly. The FairTax, for example, puts the onus on Amazon.com to legally collect and remit the 23 percent tax. Under the FairTax, it is very much in the States' interests to work together under the FairTax to collect appropriate state sales and use taxes, with the FairTax, from Internet and Main Street retailers.

In your email you also asked about purchasing "used" securities for the purpose of avoiding your tax liability. Securities are an investment, and under the FairTax, investment purchases are not taxed. I hope you find this information helpful.

Again, thank you for contacting me. If I can be of further assistance in the future, please do not hesitate to call on me.

Sincerely,

John Linder
Member of Congress

THIS ONLY REINFORCES MY EARLIER COMMENT ABOUT WHERE THE TRUE POWER LIES--VOTING FOR PRESIDENT MEANS NOTHING, BUT VOTING FOR A CONGRESS-CRITTER DOES!! Now, if we can get all the Hillary-and-Obama-zombies to actually use their brains and vote for CONGRESS MEMBERS instead of a mere figurehead, we'd be in a lot better shape today. I'd start by voting this FairTax plan turkey out of office, but alas...I don't live in Georgia.

If this plan ever comes to fruition, soon we won't even be able to afford to pay attention--not that we pay much attention as it is. Politicians count on this.

As you can read for yourself, this plan would impose an internet sales tax, keep or raise federal excise taxes, impose higher taxes on everything at the state level, and the only thing to limit or stop it would be the American voter (who is highly unreliable). Until we start paying closer and more consistent attention, we run the risk of signing ourselves into slavery and Europeanization.