Wednesday, October 17, 2012

Debating the Fair Tax: when the Progressive Left should quit while behind

I have been an advocate for the Fair Tax for almost a year.

(I used to promote a flat tax, but an explanation for that change of heart is forthcoming…)

In my occasional use of Twitter, a few weeks ago I mentioned the Fair Tax in a tweet (one of a series of tweets) to a conservative who was promoting Mitt Romney’s presidential campaign. Naturally, I was espousing the virtues of Gary Johnson.

A third individual – who enjoys trolling the “Twitterverse” for #FairTax mentions – using the handle @FilmCriticOne and goes by the moniker Mark DC injected himself into the exchange out-of-the-blue with a string of tweets. It was a rather spirited conversation (the link doesn’t display every single tweet, unfortunately), full of colorful commentary on Mark DC’s part. I thought I had managed to shake him loose, but it was only for a few hours.

By the time the cyber-dust settled, I had reasoned that even if his arguments are accurate and reliable regarding the specifics promoted by Fair Tax-dot-org, I still fully believe in the concept of a fair tax, even if it’s not the Fair Tax presently being touted.

But wait! There’s more...
What continued to linger in my mind in all my silent deliberations over the Fair Tax were the contents of a pair of Mark DC’s later replies to me.

He posted, “Those ‘provisions’ are 3/4 of it’s [sic] revenue...from city county and state ‘expenditure’ taxes.” and, “If you remove ‘those provisions’ you have to triple the tax rate.”

For a time after reading that specific portion of his feedback, I knew I was missing a very important point – and it would turn-out to be one he had unknowingly raised. While on the surface it may not seem reasonable to tax federal, state, and local government expenditures and the numbers he presented initially appear startling – making it an easy red flag for him to wave – the epiphany eventually hit me.

Disguised as outrage over a supposed “fraud” was his real driving force: fear that is intense enough to wedge his knickers into a knot.

What it boils-down-to
If Mark DC’s assertion is correct – that almost 75 percent of revenues generated from the Fair Tax as it is presently written would come from taxes on government expenditures – then the absolute last nugget of knowledge the Progressive Left in America wants entering the popular consciousness is this: public-sector consumption is outpacing private consumption three times over!

Of course, there is some truth in popular discourse over the fact Americans have become too accustomed to excessive consumption of goods: from electronics to automobiles to various novelties. And, we are reminded endlessly of the ruthless avarice of the corporate world.

But, if the Fair Tax were to be enacted and if the numbers being trumpeted by its opponents such as Mark DC accurately reflect the actual revenue streams, Americans would have statistical evidence at their disposal of how much government in general consumes in comparison to the overall private sector – to reiterate: three times the rate of consumption by government at all levels in comparison to consumption rates in corporate America and by individuals combined.

As that conversation would take-on a life of its own, we could expect to see a rise in the number of residents in almost every conceivable jurisdiction who begin to demand government spending be reined-in – as opposed to clamoring for higher state and local taxes to offset what would be due to the U.S. Treasury.

And, as public sentiment turns against Big Government, the libertarian movement will pick-up even greater steam.

So, thank you, Mark DC. As a Progressive, your impassioned criticism of the Fair Tax could be a Libertarian’s best argument for it.

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