More FairTax Thoughts…
In response to CAV’s most recent comments…
The ‘Fair Tax’ is no step in the right direction. It is like a band-aid on a cancerous lesion:
Sure, this system would still sacrifice individual property and productivity for the sake of a collective. Yes, it would still exist as a system of force, funding a federal budget that’s 80-90% illegitimate. It would still be immoral, and it is indeed a band-aid.
But, it would likely demolish perhaps the most intrusive and out-of-scope instrument of destruction and force at GovCo’s disposal. To ever arrive at the moral, just system that you and I both envision, a major philosophical and structural revolution would have to occur. This movement could be the beginning tug in an effort to yank the rug from under the table… which I think is what really will have to happen to facilitate change.
I do think this would be a step in the right direction for four reasons.
One, many businesses would be relieved of the accounting and administrative burden of our current withholding system, enabling them to focus more time and energy on being innovative and productive. The effects of this relief on small businesses alone could be enormous.
The lesion needs to be observed by someone who knows what he’s looking at, and removed before it worsens — not hidden from view for the convenience of those who don’t want to look more closely.
Second, taxation on a consumption basis would highlight, not hide the amount of wealth being forced from individuals. Withholdings facilitate an inconspicuous way to sweep the amount confiscated under the rug. If every consumer has to face the reality of where a large portion of their money goes on a daily basis instead of once a year, I do think more people will start to ask questions.
Third, we the victims would have a greater ability not to sanction our destroyer. In our current system we have very little choice but to sanction it. We have to work to survive and within our current laws then taxes must be “withheld.” Outside of risking the wrath of an IRS audit, there’s very little avenue for escape. We either have to work, and pay what we’re told; or not work, and perish.
A consumption tax returns power back to individuals… albeit minimal. I have to work to survive, but I don’t have to consume at my current rate to exist. My family could live on much less than we presently do. Under the FairTax we could consume less and still produce at our current rate. We could easily cut our monthly burn rate by 60%. That’s 60% more control (less taxation) than we have now without dropping our productivity at all. Currently, the only way you can pay less into the system, other than complicated legal wrangling, is to produce less. The FairTax would dissolve this dichotomy. One could consume less and maintain one’s productivity. Yes, the economy would inevitably suffer from the reduction in consumption, but the beast and its moochers would starve before the productive. Although it wouldn’t go down without a fight, this empowerment could serve as a means to starve the beast.
Finally, although it’s definitely not “fair,” as implied by its title, it would at least make it a possibility to spread the tax burden more evenly (again, without reducing production). Currently, the tax burden is grossly skewed towards the top 5% of income earners. There would still be sloth’s who pay nothing at all, but the big chunk wouldn’t necessarily fall only on the shoulders of the most productive as it does now.
I think this is one case where a movement whose philosophical roots are either not well articulated, inconsistent or even non-existent could serve as a means to a larger end - one with legitimate moral tenants. In other words, I think this could lead us to the same desirable goal… just with less objectively pure premises. It wouldn’t be the complete 180 that we should take, but it would be a very prominent shift towards that end.
