The "Hidden Tax" Myth & It's not a "Fair Tax" it's a National Sales Tax

[norml]

Those selling it sell it by claiming that...

1. The sales tax rate would be low and stay low.

2. The rebate would be generous and would remain generous.

3. Prices would fall because the "Hidden Tax" would be removed.

While I seriously doubt all three of these claims I'll mainly deal with the "Hidden Tax" fraud.

1. I've never known prices to fall after a tax cut, have you?

Since the last big top heavy tax cut prices have gone up, haven't they?

2. Conversely if there is such a thing as a "Hidden Tax" in which taxes are passed down to consumers through higher prices, then why not really simplify things by having all taxes collected that way by taxing only the biggest of businesses and the highest of incomes and letting the taxes trickle down through this mythical "Hidden Tax"?

[wryter2000]

1. Prices go down?

Don't make me laugh.

Landlords were supposed to lower rents when Prop 13 passed in California, too. I hope no one bought that idiotic argument.

[Cary]

2. All rethuglican "tax cuts" are really tax frauds.

It's always about shifting the tax burden from the rich to the middled class. Always and everywhere.

[getmeouttahere]

3. Great points...

but I've always felt that it wasn't how or how much we collected in taxes that was the problem, but rather how we spend what is collected. Our priorities are so out of whack! That and far too many Americans have an irrational fear of taxes, like you can have a just society for free. But then, most of those same people don't care about that, they just want "theirs"

[RobertSeattle]

4. A National Sales Tax would require a generational transition period

People about to retire have ALREADY paid their taxes and now want to live off their savings - it would be incredibly unfair to now tax them on their spending more than planned.

Anytime you hear anyone say "If you do X (to lower costs), prices for Y will fall" your BS detector should be going off. Unless it is in law, there is no necessary cause and effect between reducing costs and lower prices - why would a good capitalist do so - the goal is to maximize profit, not minimize it.

[TahitiNut]

5. Let's see a "sales tax" on stock, first.

After all, buying capital property (parts of a corporation) should be taxed instead of food, clothing, basic shelter, and medical care, right? Perhaps bonds and other loans would then become (properly) more attractive.