Prebate is problematic terminology. It doesn’t mean anything to anyone unless you first explain it to them, and it sounds too much like the word probate. Better just to call the prebate what it is, a monthly tax rebate. People can understand that.
Think of how you would explain and sell the Fair Tax to a worker at McDonalds, then keep that simplicity when you explain it to everyone. Leave the complicated explanations and logic as links inside the Fair Tax page for people like us who want to dig into it.
Remember when flat tax proponents tried to sell it as “you’ll submit your taxes on a postcard?”. Everyone understood that.
Re-reading my comment, and now I think the prebate or monthly tax rebate should be branded as the Fair Tax Monthly Rebate.
That’s some good persuasion, tying the Fair Tax name to a positive thing like a cash rebate. It’s the tax that gives money back to you!
One of the problems with the Fair Tax is how the Dems will jump on this. The Dems will distort the tax and say “the working man will pay $2 in tax on a dozen eggs or gallon of milk so the rich Republicans can steal your money!” You know the drill.
But, this Dem argument can be blunted simply by pointing out that the Fair Tax Monthly Rebate takes care of this for the average household. Case closed in a positive way.
Other predictable Dem attack points can be anticipated and minimized by the Fair Tax group simply by an effective Fair Tax presentation. One of the Fair Tax counter points has to be how the present tax structure dooms the average household. That would be a good way to blunt Dem arguments every time they argue for keeping the current tax code over the far superior Fair Tax.
Property Taxes are the greatest bane to ownership ever devised. I would vote to outlaw them even before the FairTax, and I have been a supporter of the later for years.
Funny because I know people that are proponents of a land tax, since they aren't making more of it! I can make an argument for a small amount of property tax for things that are truly public goods (fire/police/water)
I've always loved this idea, but it's been around for a while, hasn't it?
I remember Neal Boortz talking about it every day and promoting it on his radio show and blog. Unfortunately it never got any traction and there were always naysayers. I'm doubtful that 20/30 years later the momentum can change.
From an economics perspective it is an awesome idea. I also picked up on the environmental piece when looking at it, as it discourages consumption and changes our society to a wealth-building society.
But would we see some economic effects like Japan, with deflation and other problems?
I still think it's a great idea, but what are the roadblocks politically, besides education?
It has been around for a while. Since the 70s actually. We are strategizing on momentum. There is now a group of us, not singular people. Join with us. Donate $20 and tell your friends about it.
Hello Jeffrey. First of all, a deeply sincere thank you for your efforts to produce your editions. They are both prodigious and superb. I've been onboard for perhaps a year. I am grateful. It was your edition having to do with your cabin that had me concluding that you'd make a good neighbor.
My intent here is to shout from the rooftops not to forget all the perks, benefits, and yes exemptions that our elected and appointed employees have entitled themselves to, over the decades, at our expense. For those attempting to pull that curtain back, best to keep a bucket handy.
A thorough list of exemptions would fill a standard sheet of photocopy paper not even single-spaced.
I'm about into a rant. Your time, even to read this, is valuable, so, I'll bow out.
Don't forget inflation. This "hidden tax" is due to the government creating more dollars. As the money supply increases, the value of the dollar decreases.
Who gets the benefit from increasing the money supply? Well, the government of course!
HA. They won't go out of business but their tax departments will. Still need them for audit, compliance etc. They will also need to figure out cross-border tax situations and you can foresee them setting up a consumption tax tracking practice etc. The legal profession that thrives on tax also will be curtailed.
What is to stop the income tax/capital gains tax from being re-introduced on top of a consumption tax? In most of Europe, for example, there is income tax, capital gains tax and VAT (value-added tax) which is a type of consumption tax. The VAT in Sweden is 25% - on everything and at every step of the production/sales process. How does a consumption tax work at the state and local level where sales and property taxes fund those coffers? Maybe the biggest impediment: how does a consumption tax overcome the mainstream American view that a “fair” tax system is highly progressive?
On the Fair Tax site in the FAQs they rely on a Constitutional amendment to control things, but look what happened to the original income tax amendment. The language needs to be ironclad to protect We The People from the thieves and scoundrels in Washington.
What guardrails will be put in place in a Fair Tax law to prevent Congress from using the Fair Tax to suit their needs and not those of the citizenry?
Are there any cautionary lessons from European style VATs?
What needs to happen in Congress to implement the Fair Tax?
Does the Fair Tax group have a simple way to explain this tax to a skeptical citizenry wary of Congress and a way to blunt the expected Leftist scare tactics?
The Fair Tax people cannot get this passed with an appeal to logic, they need to persuade people with simple, targeted persuasion to people’s pocketbooks. They need a Scott Adams level persuader to move this forward since people are so skeptical or distrust or outright hate Congress. Both sides.
They should contact Scott Adams and hire him. I’m not being flippant, he could teach the Fair Tax people how to sell this.
The argument has to appeal to common people who know they pay too much in taxes, are frustrated, but see zero solutions coming from an untrustworthy government. A persuasive argument needs a wave of support from the general public that will wash over any objections from politicians. A 10 point plan from the Fair Tax people, no matter how well intentioned, won’t do it. A 10 point plan will appeal to guys like you and me, but we use logic in most of our decision making. The public’s eyes will glaze over after point #2, people don’t read lists or get persuaded by them.
Another idea. Contact whoever produces the videos for Prager U. Their videos are graphically simple, but it’s the logic they use in their videos to appeal to regular people or the common man that the Fair Tax group needs to adopt. Frankly, the two videos on the Fair Tax site could be simpler and better.
The Fair Tax group target market is not the 20% on the left that will reject it or the 20% on the right that will support it. It’s the 60% of skeptical Americans in the middle. What are the top 3 concerns of the 60%, and how does the Fair Tax solve them? That’s what the Fair Tax site should lead with. It has to draw people in and not overload them with information. The 3 solutions have to be short and sweet, otherwise somewhat interested people are not going to look at the Fair Tax in more detail.
Their FAQ section is also too haphazard. It should parse out information by taxpayer type or category of person via a drop down choice. I am: single, a head of household, a retiree, low, medium, or high income, business owner, single mom, widow or widower, pensioner, etc.
https://www.atlanticplaybook.com/p/why-the-fair-tax-act-works-for-american?utm_source=share&utm_medium=android&r=1pwlhv&triedRedirect=true with an actual graph!
Prebate is problematic terminology. It doesn’t mean anything to anyone unless you first explain it to them, and it sounds too much like the word probate. Better just to call the prebate what it is, a monthly tax rebate. People can understand that.
Think of how you would explain and sell the Fair Tax to a worker at McDonalds, then keep that simplicity when you explain it to everyone. Leave the complicated explanations and logic as links inside the Fair Tax page for people like us who want to dig into it.
Remember when flat tax proponents tried to sell it as “you’ll submit your taxes on a postcard?”. Everyone understood that.
good ideas.
Re-reading my comment, and now I think the prebate or monthly tax rebate should be branded as the Fair Tax Monthly Rebate.
That’s some good persuasion, tying the Fair Tax name to a positive thing like a cash rebate. It’s the tax that gives money back to you!
One of the problems with the Fair Tax is how the Dems will jump on this. The Dems will distort the tax and say “the working man will pay $2 in tax on a dozen eggs or gallon of milk so the rich Republicans can steal your money!” You know the drill.
But, this Dem argument can be blunted simply by pointing out that the Fair Tax Monthly Rebate takes care of this for the average household. Case closed in a positive way.
Other predictable Dem attack points can be anticipated and minimized by the Fair Tax group simply by an effective Fair Tax presentation. One of the Fair Tax counter points has to be how the present tax structure dooms the average household. That would be a good way to blunt Dem arguments every time they argue for keeping the current tax code over the far superior Fair Tax.
Good luck!
Even worse than income taxes are property taxes. At least the serfs worked 4 days per week.
Property Taxes are the greatest bane to ownership ever devised. I would vote to outlaw them even before the FairTax, and I have been a supporter of the later for years.
Funny because I know people that are proponents of a land tax, since they aren't making more of it! I can make an argument for a small amount of property tax for things that are truly public goods (fire/police/water)
Any tax that can take away paid-for property is an issue with me. Sales taxes can and should take care of that.
I've always loved this idea, but it's been around for a while, hasn't it?
I remember Neal Boortz talking about it every day and promoting it on his radio show and blog. Unfortunately it never got any traction and there were always naysayers. I'm doubtful that 20/30 years later the momentum can change.
From an economics perspective it is an awesome idea. I also picked up on the environmental piece when looking at it, as it discourages consumption and changes our society to a wealth-building society.
But would we see some economic effects like Japan, with deflation and other problems?
I still think it's a great idea, but what are the roadblocks politically, besides education?
It has been around for a while. Since the 70s actually. We are strategizing on momentum. There is now a group of us, not singular people. Join with us. Donate $20 and tell your friends about it.
Great stuff. Love the fair tax. Read the book 25 years ago.
Hello Jeffrey. First of all, a deeply sincere thank you for your efforts to produce your editions. They are both prodigious and superb. I've been onboard for perhaps a year. I am grateful. It was your edition having to do with your cabin that had me concluding that you'd make a good neighbor.
My intent here is to shout from the rooftops not to forget all the perks, benefits, and yes exemptions that our elected and appointed employees have entitled themselves to, over the decades, at our expense. For those attempting to pull that curtain back, best to keep a bucket handy.
A thorough list of exemptions would fill a standard sheet of photocopy paper not even single-spaced.
I'm about into a rant. Your time, even to read this, is valuable, so, I'll bow out.
Thomas, in Montana
Thanks and Montana is gorgeous. We were fly fishing in Craig last September.
Don't forget inflation. This "hidden tax" is due to the government creating more dollars. As the money supply increases, the value of the dollar decreases.
Who gets the benefit from increasing the money supply? Well, the government of course!
Fair Tax will not cure inflation. But, it will change the way government collects and spends money
Great post Mr Carter! Sign me up!
How do you think that will impact accounting firms?
HA. They won't go out of business but their tax departments will. Still need them for audit, compliance etc. They will also need to figure out cross-border tax situations and you can foresee them setting up a consumption tax tracking practice etc. The legal profession that thrives on tax also will be curtailed.
What is to stop the income tax/capital gains tax from being re-introduced on top of a consumption tax? In most of Europe, for example, there is income tax, capital gains tax and VAT (value-added tax) which is a type of consumption tax. The VAT in Sweden is 25% - on everything and at every step of the production/sales process. How does a consumption tax work at the state and local level where sales and property taxes fund those coffers? Maybe the biggest impediment: how does a consumption tax overcome the mainstream American view that a “fair” tax system is highly progressive?
On the Fair Tax site in the FAQs they rely on a Constitutional amendment to control things, but look what happened to the original income tax amendment. The language needs to be ironclad to protect We The People from the thieves and scoundrels in Washington.
What guardrails will be put in place in a Fair Tax law to prevent Congress from using the Fair Tax to suit their needs and not those of the citizenry?
Are there any cautionary lessons from European style VATs?
What needs to happen in Congress to implement the Fair Tax?
Does the Fair Tax group have a simple way to explain this tax to a skeptical citizenry wary of Congress and a way to blunt the expected Leftist scare tactics?
Good questions. Check out their website and see if there are answers.
Will do, thanks!
The Fair Tax people cannot get this passed with an appeal to logic, they need to persuade people with simple, targeted persuasion to people’s pocketbooks. They need a Scott Adams level persuader to move this forward since people are so skeptical or distrust or outright hate Congress. Both sides.
good point. wonder where one is found?
They should contact Scott Adams and hire him. I’m not being flippant, he could teach the Fair Tax people how to sell this.
The argument has to appeal to common people who know they pay too much in taxes, are frustrated, but see zero solutions coming from an untrustworthy government. A persuasive argument needs a wave of support from the general public that will wash over any objections from politicians. A 10 point plan from the Fair Tax people, no matter how well intentioned, won’t do it. A 10 point plan will appeal to guys like you and me, but we use logic in most of our decision making. The public’s eyes will glaze over after point #2, people don’t read lists or get persuaded by them.
Another idea. Contact whoever produces the videos for Prager U. Their videos are graphically simple, but it’s the logic they use in their videos to appeal to regular people or the common man that the Fair Tax group needs to adopt. Frankly, the two videos on the Fair Tax site could be simpler and better.
The Fair Tax group target market is not the 20% on the left that will reject it or the 20% on the right that will support it. It’s the 60% of skeptical Americans in the middle. What are the top 3 concerns of the 60%, and how does the Fair Tax solve them? That’s what the Fair Tax site should lead with. It has to draw people in and not overload them with information. The 3 solutions have to be short and sweet, otherwise somewhat interested people are not going to look at the Fair Tax in more detail.
Their FAQ section is also too haphazard. It should parse out information by taxpayer type or category of person via a drop down choice. I am: single, a head of household, a retiree, low, medium, or high income, business owner, single mom, widow or widower, pensioner, etc.