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PostPosted: Wed Apr 23, 2008 10:17 pm 
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I have a FairTax question that I hope someone can answer. I read this entire thread and didnt see it covered. I emailed FairTax.org and did not get an answer from them yet. I just read the first Boortz, Lindman book (in one day it was fascinating and my flight was very delayed). I immediately passed it on to my brother to read and pass on to others. And I bought 2 more copies on ebay to pass on to other friends.

My question is this. If one of the FairTax benefits is that our U.S. companies will be so competitive globally with elimination of the embedded tax from the price of their goods that U.S. companies that sought tax haven in other countries will immediately come back and non U.S. Companies will want to move to the U.S., why aren't U.S. companies more supportive vocally for the FairTax and its resulting economic boom? I would think they would be lobbying non stop to get this passed.

One more question: Wouldnt the elimination of the embedded tax be replaced by the FairTax thereby eliminating the competitive price advantage? Its a push right so no competitive edge.

Look forward to you answers.


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PostPosted: Thu Apr 24, 2008 4:04 pm 
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Hello Lizz310,
Thank you for your interest in the FairTax! I'll take your second question first.
Indeed, the FairTax is revenue neutral. There is a waging "battle" of sorts to determine the extent that prices will drop and wages will increase under the FairTax, but in the end, spending power is essentially a wash...we just have a much easier and more efficient system that doesn't allow the government to socially manipulate. This, of course, applies solely to goods produced and purchased inside the US.
We currently have the cost of the code embedded in the price of our products, so that when we hit the border with them as exports, that tax is carried overseas in the form of the higher price. Once those embedded taxes are stripped via the FairTax, those goods are less expensive. The US won't be charging the FairTax in Europe or China or whereever else we send those goods, so people in those countries that purchase our goods will indeed see an average 22% price drop in the cost of American made goods.
Does that make sense? It's only a wash here because we add the tax when the final good is purchased. Once it's out of our country, that tax will no longer apply and we will become more competitive.

Your first question is one that makes FairTax supports heads explode. You are right, it does seem logical doesn't it?!
Truth be told, there are business groups lobbying for the FairTax including the National Small Business Association and the Associated General Contractors. Even the Farm Bureaus are largely supportive.
When it comes to "big" companies however, I have several theories as to why it hasn't been a mass backing.
First, like the government, those at the top of a large company generally are surrounded by "experts" who guide their decision making. Those employees hired to handle the excessive tax burdens and complexity of the current system, just like washington tax lobbyists, stand to lose their job if there is no more tax game to play. Odds are they haven't shared with their superiors the formula by which their jobs would become obsolete!
The second, and more likely, scenario is this.
It comes down to power.
The big companies can afford the tax lobbyists, the multinational expansions, etc. They reap the benefits of the current tax code (special deductions, credits, etc) while many and most small businesses can't afford to do so or simply don't qualify. Big companies can litterally squish small competition out of the way because they can afford the burden of the tax code. What happens with the FairTax? The playing field is made even. Small businesses are now better able to compete with their larger competition. To many CEO's, the current tax complexity is worth the price of keeping monopoly type control over a given industry. When they suddenly are at an equal playing field with other companies, well, they stand to lose.
They utilize the tax code they can afford to game in order to keep competition at bay.
Believe you me though, once the FairTax is a done deal, after a couple of years, I don't think they'll be pining for the days of the Internal Revenue Service!
I know I got long winded here, but I hope it helps.
Feel free to ask any questions you have...or if I need to clarify or add anything to this one.
Cheers,
Christian

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PostPosted: Fri Apr 25, 2008 11:28 pm 
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Thanks Christian. That was great. I didnt think about no FairTax on exported goods. That makes sense. Of course we cant collect taxes on goods sold to consumers in retail stores in another country.

And I know how big corporations work. We need to break that brain trust somehow.


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PostPosted: Sun Apr 27, 2008 9:55 pm 
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lizz310 wrote:
I have a FairTax question that I hope someone can answer. I read this entire thread and didnt see it covered. I emailed FairTax.org and did not get an answer from them yet. I just read the first Boortz, Lindman book (in one day it was fascinating and my flight was very delayed). I immediately passed it on to my brother to read and pass on to others. And I bought 2 more copies on ebay to pass on to other friends.


I'd suggest reading the second book. I still haven't read it, myself, since my life has been so cluttered, lately. :?

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PostPosted: Sun May 04, 2008 7:53 am 
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I got a reply from FairTax.org on the question I posed here. Here is what I asked them:

"I just read the first Linder Boortz book. My question is if the fair tax will make U.S. companies so much more competitive globally why isn’t there a ton of corporate support."

Here is their reply:

"Good question Elizabeth . One main reason is that most large corporations have lobbyists and those people are the ones who look at tax proposals. The other reason is that businesses are hesitant to get involved with any major, transformational change that doesn’t already have wide public support.

Make sure you’re getting email updates by going here http://www.fairtax.org/action_signup and let me know if you want to get more involved in your area. Thanks!"

Aaron Schutte
Grassroots Special Projects Coordinator
713.963.9023 ext. 9612


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PostPosted: Sun Feb 05, 2012 11:35 pm 
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Today I had someone walk up to me as I was getting in my truck, asking about my Fairtax bumper sticker. So those bumper stickers do work! I bought mine here:
http://www.cafepress.com/+fairtax_bumpe ... ,201879141


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PostPosted: Mon Feb 06, 2012 5:57 am 
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Has Gov. Huckabee spoken lately for Fair Tax? I have been wondering if there are any Presidential candidates interested in promoting it lately. This is just one of many issues facing Americans that need work--tax reform. Thanks for bumping this thread up again.

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PostPosted: Mon Aug 20, 2012 2:59 pm 
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New hi-def FairTax video:




Post by davem Liked by: WhatsNotToLike?
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PostPosted: Sun Dec 02, 2012 10:14 pm 
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Click to send a letter to you representative:

http://www.fairtax.org/cliff

Be sure to customize your letter even just a little so that it does not get flagged as spam.

Quote:
The Fiscal Cliff Two Minute Action Alert

Today’s headlines are at best discouraging that Congress is making any bi-partisan progress on solving our nation’s worst economic crisis since the Great Depression. Depending on the hour, one saw the following online headlines today:
- "Playing Chicken"
- "Nowhere"
- "Obama Warns of Scrooge Christmas Without Tax Deal"
- "Naughty and Nice: Obama Pushes Fiscal Cliff Deal"
- "Debt Ceiling is our Leverage"

The fiscal cliff is driving the news but the real question is, who is driving the solution? From all appearances nobody, because everybody is too busy grandstanding on partisan politics, seemingly oblivious to the pain and suffering of the millions of Americans who are jobless, underemployed and soon to be unemployed as a result of impending cuts and closures. There is a solution.

With all the grand bargains being tossed around Washington, the FairTax® is the only tax replacement plan ready for immediate implementation and capable of providing the necessary revenue to fund our federal government.

So will Congress take this opportunity to embrace the simplicity and strength of the FairTax Plan?

No, not unless you immediately apply a sustained program of communication, pressure, education and activism.

That’s why your continued help is a crucial component of the FairTax becoming the law of the land.

It is vital that you immediately communicate with your Congressional delegation by phone, email and/or by letter! Tell them why you support the FairTax Plan and that it is critical that the American people hear a full and open debate on the merits of this vital legislation.

We have made it easy for you to send a letter. It will take no more than 2 minutes of your time.

Simply go to FairTax.org/Cliff where we already have prepared a letter for you! You simply fill in your name and address and our IT system will automatically forward it to your representative. This could be one of the most important letters you will ever send!

Thank you!


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