"Georgia FairTax" update
That evil Real Estate agent Steve Davis has submitted the Georgia FairTax legislation for the 2007 session of the Georgia General Assembly:
A brief overview is that the bill will eliminate all Georgia personal income taxes and corporate income taxes and replace it with a sales tax. I believe the citizens will be able to keep more of their money and the legislation will encourage more businesses to move to Georgia! The bill will reduce stress for the general public while adding to the tax rolls illegal immigrants, criminals, tourists and those that would try to avoid paying taxes. I believe it is the simplest and the fairest way to tax. The bill is as close to revenue neutral as possible, without splitting a penny it is actually slightly under not over the current income tax level. This is calculated based on current sales tax collections, which is what the fiscal note will show.Buzz Brockway has posted about this on Peach Pundit.
Comments
Somebody learn me something on this Georgia Fair Tax proposal.
Rep. Davis would like to increase the state sales tax by 100% and do away with State income tax and promotes it as “Fair Tax” similar to what is being kicked around for federal taxes.
By increasing the state sales tax 100% from 4 to 8% this brings in the needed revenue to run our state.
Is Rep. Davis also saying that the cost of goods and services which are taxed at a higher rate going to go down in price by an equal amount of the increase in tax, to be neutral to the consumer? It is my understanding that the Fair Tax is being touted as not an increase in the cost of goods and services because the items being purchased go down by the amount of the tax being collected.
It seems that this Georgia Fair Tax bill is an increase in sales taxes without the reduction in cost of goods and services. Therefore the title of the act is misleading and could actually hurt efforts to have the Fair Tax implemented at the federal level due to the perceived inflationary prices in the cost of living to the individual.
Am I wrong in my assumptions?
Posted by: ngreenbaum | August 3, 2006 09:41 AM
Yes.
Posted by: White Male Voters | August 3, 2006 10:40 AM
Explain where I am wrong.
Posted by: ngreenbaum | August 3, 2006 11:39 AM
You were from the word "Somebody" to the question mark after the word "assumptions".
Posted by: White Male Voters | August 3, 2006 12:38 PM
Insert "wrong" between were and from in that last post.
Posted by: White Male Voters | August 3, 2006 12:39 PM
Is there anyone out there other than me and this SAWB in the room?
Posted by: ngreenbaum | August 3, 2006 01:28 PM
I am intrigued by the whole idea.
Steve Forbes made a great case for the Fair Tax a couple of years ago. He pointed out that economic growth would likely explode, because of all the descretionary income folks would suddenly have.
On the down side, it seems like there would have to be substantial inflationary pressure on goods and services. The question is how much, and would this hurt the overall economy?
And how can we trust government not to keep coming back and raising the sales tax rate? The 8% figure sounds low, given the income tax revenue it would need to replace.
Also, it seems like the Fair Tax would favor those who have already made their major life purchases (houses, appliances, cars, etc.) as opposed to those who are just getting started.
But hey, it's a voluntary tax-just liked the lottery. If you don't want to pay it, don't consume....
Hope to learn more about it.
Posted by: Keith Seiler | August 3, 2006 02:04 PM
Didn't Forbes advocate the flat tax? The flat tax is still an income tax. The FairTax is a consumption tax.
Posted by: Jason | August 3, 2006 02:06 PM
Oops-I think you're right.
But I think one premise is similar-that economic activity increases when income tax is either reduced or eliminated.
A concept I agree with wholeheartedly......
Posted by: Keith Seiler | August 3, 2006 02:55 PM
Enjoy your ability to openly comment on and criticize the FairTax while it lasts...AFFT wants to take that right away from you...
The Americans For Fair Taxation (fairtax.org) are on a mission to squash out any public criticism of the FairTax plan and are attempting to exploit the federal trademark system for the ADMITTED purpose of being able to shut down anti-FairTax websites during the upcoming elections. They have an open application to obtain a service mark for the word "FairTax." Genie Hayes, the communications director for AFFT, openly admitted that the goal of AFFT is to get this service mark and be able to yank any anti-FairTax websites as well as to have total control over any shirts, bumper stickers, or anything of that nature that is printed with the word FairTax. They are attempting to get the strong arm of the federal government to back them up in hindering free speech and open/honest debate.
The FairTax is promising to become a rather prominent issue in the upcoming Congressional elections--and if AFFT succeeds in obtaining this service mark, they are going to be in an excellent position to keep people from criticizing the FairTax Act.
The time for opposition to their application is fast approaching. I know that an application for a service mark can't be opposed just because the applicant's motive is unethical. However, I do believe that there is a very STRONG case that AFFT doesn't meet the legal requirements for obtaining a service mark. The strongest argument is all around us--the phrase "Fairtax" is SYNONYMOUS with H.R. 25 and the Fair Tax Plan.
Unfortunately, as it stands right now, I think they'll win their service mark and they'll be on the road to having the power to tell people that they cannot participate in public debate regarding H.R. 25. Perhaps, at least, the public will be informed of this attempt to filter open and honest critiques.
Posted by: momospy | August 10, 2006 06:45 PM