QUOTE(Bart Katz @ Oct 3 2006, 02:30 AM) [snapback]246082[/snapback]
Bortz uses funny math when he talks about his tax plan. As far as I'm concerned he's full of crap.
He also makes things up, even in front of Congress!
Here is Another misrepresentation made by Boortz to Congress concerning H.R.25!
Seems that it wasn’t enough for Neal Boortz to falsely assert to a Congressional Committee that
“Nobody pays federal taxes on the basic necessities of life” under H.R. 25, Mr. Boortz also misrepresented the “transparency” of taxation under H.R. 25.
Neal Boortz testified:QUOTE
If its tax transparency we want, consider this: Under the FairTax, when a consumer steps up to the cashier to purchase a $100 toaster, the sales receipt he or she receives would clearly indicate that $77 of the cost of that toaster is going to the retailer, with the remaining $23 going to the federal government in the form of taxes.
What could be clearer? What could be more transparent?
No longer would American workers lack a clear understanding of how much they're paying in federal taxes. Every time they are handed a sales receipt it would be spelled out for them.
The misrepresentation involved here are embedded taxes [other federal taxes] which may be passed on in the selling price
but do not appear on the sales receipt!The question is, does H.R. 25 propose to replace “
“the income tax and all other federal taxes with a national consumption tax” as Mary and Joe Six-pack are led to believe by H.R.25’s primary promoters? [e.g. see:
Americans for Fair Taxation.]
If all federal taxes are not repealed and federal taxes which are not repealed are passed on in the selling price, Mary and Joe Six-Pack will not have
“a clear understanding of how much they're paying in federal taxes.”, nor will it
“be spelled out for them” every
“time they are handed a sales receipt” as asserted by Mr. Boortz. So, are there any taxes which may be passed on which will not appear on the sales receipt?
As it turns out, under the language of H.R. 25, Sec. 302, a new federal agency is proposed to be created called the "Excise Tax Bureau"!
SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.(d) Excise Tax Bureau-
There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms.And, when one continues to study
THE TEXT OF H.R.25] they soon find out that under SEC. 104, the excise tax provisions of the Internal Revenue Act
are not repealed !Under Section 104 (a) CONFORMING AMENDMENTS the Internal Revenue Code of 1986 is amended by re-designating, i.e. certain sections are switched around like musical chairs, and:
subtitle D (relating to miscellaneous excise taxes) becomes subtitle B, and;
subtitle E (relating to alcohol, tobacco, and certain other excise taxes) becomes subtitle C.
The existing ``subtitle D`` is the authority for all excise taxes not administered by the Bureau of Alcohol, Tobacco and Firearms. The existing ``subtitle E`` is the authority for all excise taxes administered and collected by BATF.
Other than changing the subtitles (due to a moratorium on personal and corporate income taxes, payroll taxes, estate and gift taxes, etc.) nothing changes! And so, the assertion that H.R. 25
``replaces the income tax and all other federal taxes with a national consumption tax.`` is at best misleading, at worst an outright lie, and so, the hidden tax game of Congress remains very much alive under the proposed H.R. 25 !
Fact is, the proposed 23 percent tax which Mr. Boortz mentions will be in addition to any and all hidden excise taxes which Congress may decide to lay upon businesses, corporations, occupations and individuals, some of which may even be calculated from profits, gains, salaries and other “income” derived under a subject matter an excise tax may be laid upon, and, this is in addition to
existing excise taxes which are now collected by the BATF, and other excise taxes now being collected.Aside from the illusion of “transparency” under H.R. 25, the fact that H.R. 25 does not replace the income tax and all other federal taxes with a national consumption tax is very, very important to know and have a clear understanding of.
Why is this important? Because it exposes another fairy tale told to the American People by Mr. Boortz.
The tale spun by Mr. Boortz goes something like this: because embedded taxes [federal taxes now imposed such as the “income tax” “pay role taxes” and other taxes which businesses and corporations pay] will be repealed under H.R. 25, thereby lowering the tax burden for business owners across America, business owners will be more than encouraged, because of “competition“, to use their reduction in income taxes and other taxes to neutralize the 23 percent tax created by H.R. 25, and so, there wont be an increase in consumer prices and poor working people or our elderly living on fixed incomes do not have to worry about any dramatic price increase in goods and services.
Well, isn’t that peachy Mr. Boortz? Only problem is there are only a few specific taxes H.R. 25 proposes to put a moratorium on which businesses now pay to the federal government and are later embedded in the selling price of goods and services so businesses owners may regain these taxes paid to the federal government.
Since there is not even a whisper in H.R. 25 to restrain Congress’ power to impose countless new excise taxes on corporations, businesses, individuals and certain occupation under H.R. 25, and, H.R. 25 is specifically worded
so existing excise taxes are not repealed, maybe our nation’s working people and elderly on fixed incomes really do have to worry about dramatic price increases, contrary to the tale spun by Neal Boortz about embedded taxes being eliminated which turns out to be nothing more than a fairy tale, created to mislead the people and gain their support for H.R. 25.
Be cautious of the Fairy Tale version of H.R. 25 which Neal Boortz and others are feeding you.
Regards,
JWK