FairTax Enforcement
I don’t know if ya’ll have figured this out yet or not but I fully support the FairTax. When talking to people about the FairTax one of the questions that comes up that I just don’t have good answers for is on how it will be enforced. Brad Warbiany gives us a good explanation here.
Common in the FairTax debate are the questions of avoidance and evasion. Due to these incredibly common questions, and the fact that the answers are not easy to find (even in The FairTax Book), I hope to give a full accounting here.
First, allow me to clear the air. I don’t believe that the claims that this will be collected and enforced by the state sales tax agencies to hold one iota of water. To the extent that some of the actual collection may be done this way may be true, but true enforcement will be handled by the feds. You see, the federal government can’t force states to collect the tax. States which choose to do so will, but any state which doesn’t opt into the “administering state” guideline will have the FairTax administered by the feds (HR 25, secs 401-404,).
I’ve studied the FairTax a good bit and this was very enlightening even to me. I hope you can benefit from this information as much as I have and I hope you are contacting your federal representatives and asking them to join the other legislators who have put their names on HR25 and S25 as co-sponsors of this bill.
About Larry D. Burton
I'm a 55 year old controls engineer who just likes tinkering with stuff.
Finished high school at a local institute of learning. Decided it wasn't a good time to be a healthy, physically fit 18 year old with no college experience. Entered college and started working toward a degree in animal husbandry.
1975-1976
Discoverd that I was not going to be a very good husband of animals so I left school to figure out what I might be good at. A local beverage company took pity on me and paid me to go from place to place making sure their on tap beverages were maintaining their high quality.
1976-1979
Got out of quality control and into vending. Learned about control systems and refrigeration also learned that vending machines are heavy and vending doesn't pay all that well.
In 1977 I found myself married
1979-1981
Dedicated myself to installing and maintaining commercial refrigeration equipment. Found myself on the roof of a local grocery store one night in the middle of an ice storm replacing a compressor and figured it was time to get back into school.
1981-1986
Got my but back into school at night and changed jobs to keep the mechanical and electrical systems of a local coporate hospital in working order. The job expanded to unstopping drains and burning lab samples and amputated body parts.
1986-now
Finished school and took on a job designing, installing and maintaining industrial control systems. Along the way I picked up a bunch of computer skills that became very useful connecting various industrial controllers to one another and moving the data into coporate databases. I now operate Dallas Bay Technologies, a one man shop specializing in technology solutions for industrial problems.
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Yes, I agree with you the FairTax could be a great improvement of the current monster bureaucracy.
I think the FairTax will make the life of a tax paying citizen much easier.
I dont see how the Fair tax can possibly work.
Still — IM all for passing it. I think we need to do it, just to learn how economics works.
But wow — there are going to be some real surprised people.
Nursing home patients would get a surprise the first month of this tax. Nursing home patients could easily get Tax bills of up to 4,000 a month, and the average will be 2100 a month.
Cancer patients are another group — their chemo and surgery will be taxed. A cancer patient could easiy get a tax bill of 40,000 dollars in their struggle to stay alive – or to keep a child of theirs alive.
There will be a huge outcry — from these and other groups. I dont see how Congress will not give them exemptions. Ive been involved in politics for 35 years, and I can assure you, they will get exemptions, and they should. Many simply couldnt afford the tax
But no other part of FT is quite so puzzling, as the notion, as Boortz said “the government itself becomes a major taxpayer” because of Fairtax.
Isnt that like paying yourself to cut your grass? Sure you can write the check, you can even deposit it in that same account. But you didnt make 500 dollars.