Regarding Mentat's factcheck.org link:
My first problem with the article is the first thing it decides to discuss in the nature of the inclusive tax. The Fair Tax is a national sales tax that is embedded in the retail price of an item. It is 23% of the total cost. A $100 item would have a tax of $23 embedded. No matter how many times I figure it, $23 consistently works out to be 23% of $100. However, because people are so used to calculating the sales tax on the price of the register, opponents love to point out that this is equivalent to purchasing a $77 item and then being charged 30% sales tax. That might sound nice and scary but one should remember current prices of products and services are already inflated by the tax the entity that provide said goods or services (and every entity involved in their production) already pay.
The article also makes this list of items people would now have to pay tax on:
* Purchases of new homes
* Rent
* Interest on credit cards, mortgages and car loans
* Doctor bills
* Utilities
* Gasoline (30 percent in addition to current taxes, which would not be repealed)
* Legal fees
The items I've bolded are no-brainers. They are already inflated from the effects of our current tax scheme. I would need to do some research as to how it suggests interest would now be taxed. My initial thought is that because the tax is embedded in the costs of goods or services that when said cost is financed you end up paying interest on the tax. If that's the case, seems like that is already occurring. I would agree that current gasoline taxes should be repealed or that fuel should not be subject to the Fair Tax.
It then goes on to state "A $150,000 new home would run $195,000 – plus the 30 percent tax that the buyer would pay on the interest on the mortgage.". This purposely refrains from taking into account the fact that the home would no longer be a $150,000 home. All of the goods or services needed to produce the home would no longer have tax related expenses so that cost of doing business would no longer inflate the price of the home. This is the sort of deception that opponents of the measure frequently use.
The article does spend three paragraphs discussing the argument that these eliminated taxes are already essentially paid by the consumer. They are three of the weakest paragraphs in the article as it doesn't really draw a conclusion on the matter. Just sort of throws up some theoretical points and smoothly moves on.
The last several paragraphs contain nothing near as inflammatory. There is some sort of "subjectification" going on. It even goes on to state that most critics agree that the economy would grow and wages would rise as a result. I dislike the editorializing comment that "t is possible that the Fair Tax would make most people better off, but much of that gain would be a direct result of making the tax code less fair."
Simply put, the author's anti-Fair Tax attitude seems obvious for much of the article. In the end, even anti-Fair Tax rhetoric couldn't seem to negate the positive effects expected (although he still needed to take one last cheap shot at it). In this case I think I would have to agree with Pelosi. We really just need to pass it so that we can really see what's in it.
"I would rather claim to be an uneducated man than be mal-educated and claim to be otherwise." - Wookie 03:16