I rarely invite people to read other blog articles. It seems to me counter intuitive. After all, I am right on all things, so why would I want to send you to someone else for inaccurate and confusing information. However, I found this article so laughable, I figured that you all would enjoy a good chuckle.
T.A.B.A.C.C.O. attempts to criticize my view on the Fair Tax but it appears that he didn’t even bother to read what I had to right. And as you know, I sure love playing with numbers. He gets his numbers wrong too. I probably made the carnal mistake of actually replying to his mistakings, but they aren’t appearing on his site. So, I have chosen to reproduce them here:
My response to T.A.B.A.C.C.O.’s criticism of Fair Tax. Are We Ready?
Your response is so laughable. I don’t even know where to begin. But I have consulted with Mr. Have More, even though he only make 6 figures compared to my 8 figures. And after we both had a good chuckle. We decided to start with your numbers.
Why does only the Mr. Average Joe pay interest. Even with my 8-figure salary I am paying over $2000 dollars in interest on my multi-million dollar home. Don’t forget the interest that I am paying on my Porche Carrera GT. That’s about $500 too. Then you assume that tax is paid on interest. It never has been and if you had read the fairtax.org information you would have known that interest is not taxed. So, your numbers are completely skewed and biased.
Speaking of not having read anything (like my article on the fair tax, it’s a pretty good read, you really should look at it, be forwarned there is a typo in there and as you are a better proofreader than a number cruncher that might bother you). If you would have read more on the fair tax concept you would have learned that there is a certain level of income that isn’t taxed at all. Although [http://www.fairtaxvolunteer.org/smart/faq-main.html#3 they don’t give an exact number], I can make a stab that it will be about $25000 that isn’t taxed. I am probably being to conservative with that number because I am sure it is probably higher.
So, with that in mind, Mr. Average Joe would have only paid $3450, if he had had to borrow as much as you claim he did. That’s 11.5% in taxes. Which is less than the 13.8% tax that you attributed to my millionaire freind, Mr. Have More.
However, you forgot to take into account what Mr. Have More did with his extra $400,000 that he didn’t spend. Assuming Mr. Have More works for someone else and can’t hire more employees who he could pay more. (If he did Mr. Average Joe probably got a $5000+ raise, thus eliminate half of the interest he paid this last year.) But Mr. Have More (like me) works for another person. So, he decides to invest the $400,000 dollars in the stock market. That just created 3 more jobs, or offered up 10 more pay raises. This new money is also spent and thus, Mr. Have More is indirectly taxed, but will be rewarded when he cashes out his stock.
But more than Mr. Have More’s benefit, we as a society benefit, because there are less jobless and more services for all of us to enjoy and use.
The most important thing to note, however, is that the article of mine you so graciously criticized is a direct critism of the Fair Tax. I criticize it because it keeps the current tax system revenue nuetral. I think that government provided services need to be reduced. The article calls for a reduction in tax burden before we start talking about moves to a fair tax. Perhaps you would enjoy reading it.
Oh, and the name is spelled Gazelem (pronounced Gä-zā’lĭm, that’s Gah-ZEY-lim if you are phonetically challenged).