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Archive for Friday, August 20, 2010

Congressional candidates spar over possibility of ‘Fair Tax’

August 20, 2010

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The issue of the so-called “Fair Tax” erupted Friday in the 3rd U.S. House District race between Republican Kevin Yoder and Democrat Stephene Moore.

Yoder of Overland Parks says he doesn’t support the “Fair Tax” proposal, but the Kansas Democratic Party posted a video on youtube that shows a “Fair Tax” official saying that Yoder personally told him that he did support the proposal.

The “Fair Tax” is a plan to eliminate federal personal and corporate income taxes and replace them with a 23 percent national sales tax.

In the video, John Collett, a director with Americans for Fair Taxation, said Yoder told him that he will sponsor the “Fair Tax” measure if elected. Collett added that Yoder didn’t want to make the “Fair Tax” a campaign issue because he would have to spend money to fight attacks from Moore on the issue.

Moore of Lenexa opposes the “Fair Tax” and her campaign issued a statement saying that Yoder was trying to hide from voters his support of it.

Opponents of the measure say the “Fair Tax” wouldn’t be fair but would hurt middle-income families. In Kansas, they say, middle-income families would see their taxes increase by $2,369 per year, while the wealthiest 1 percent in the country would see their taxes cut by $225,000.

In response to Moore’s statement, Yoder issued a statement saying that the “Fair Tax” movement was the product of frustration with the tax code. “While I do support thorough reforms to our broken tax code, I have never supported the Fair Tax. Even more importantly, I don’t trust Washington to do away with the income tax which is the fundamental principle of the Fair Tax,” he said.

Yoder’s campaign said Collett was mistaken when he said Yoder supported the “Fair Tax.” A telephone message left with Collett was not immediately returned.

The 3rd District includes eastern Douglas, Johnson and Wyandotte counties.

Comments

Itsalwayssunny 3 years, 7 months ago

Yoder is not for the fair tax !!!!! all the evidence says that he is not ! Here is a response that fair tax KC sent out:

JOHN COLLET -- Fairtax KC "To All Concerned Americans Regardless of Political Persuasion.

I misunderstood KS 3rd Republican Candidate Kevin Yoder's position on the FairTax and for that I sincerely apologize. To clarify, I understand Mr Yoder has not made a decision on the FairTax and I respectfully accept that position. "

Even he say kevin is not for the fair tax, and if this still doesnt make a point here is an excerpt that the yoder campaign sent out:

Overland Park –Republican Congressional nominee Kevin Yoder commented today on tax reform and specifically the Fair Tax, a proposal which would replace the national income tax with a sales tax.

“I believe Americans are frustrated,” said Kevin Yoder. “Every year they are forced to navigate a complex and burdensome tax code and every year they see more of their hard earned dollars going to a government that isn't working for them. Movements such as the Fair Tax are born from this frustration. While I do support thorough reforms to our broken tax code, I do not support the Fair Tax. Even more importantly, I don’t trust Washington to do away with the income tax which is the fundamental principle of the Fair Tax.”

“What I do support is a thorough restructuring of our tax laws that works for American families and American businesses. The current system is too complex and leaves American families and business owners frustrated. Complex and cumbersome deductions, exemptions and credits often don't work for middle America and for small businesses,” said Kevin Yoder.

“In the state legislature Yoder stood firmly against a 1% sales tax increase that was supported by Democrats across the board,” said Yoder’s Campaign Manager, Travis Smith. “On the other hand, Stephene Moore has virtually guaranteed to voters that if she is elected to Congress she would support a whole host of new taxes: Cap and Trade, Obamacare, more bailouts at taxpayer expense, and the expiration of the Republican tax cuts, also known as the largest single tax increase in our Nation’s history. In addition, she still has yet to tell voters if she will vote for Nancy Pelosi as Speaker of the House.”

What more evidence do you want that yoder is NOT for the fair tax. This should be a fair election for the people and the information should be relevant not just something made up. From what I have been reading the Yoder campaign has challenged moore to a debate this is a reasonable and even necessary request; however, moore has not accepted to me this seems a little shady. Let the people have a debate. This election is too big for the candidates to not talk. I think we can all agree to a debate !

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beatrice 3 years, 8 months ago

Interesting idea, as the tax code is way too complicated now. Simplifying without endless loopholes and exceptions would be a good thing. It is something worth discussing.

Is that 23% plus the city and state taxes? If adding state tax, that pushes it above 30% in most states. Or do the states get a cut of the 23%?

So how would this affect non-profits? Would they have a special code to use to not have to pay, or get money back at the end of the year? What other loopholes will there be? What about buying luxury items overseas -- will there be an import tarrif to prevent the wealthy from buying their yachts in Canada before parking them in Rhode Island? Would this help or hurt general spending, and is that good or bad for the economy?

Will there still be deductions for mortgage interest, and if not, what would that do to the housing industry? Could eliminating such a deduction on individual taxes be legal?

Since I live below my means and prefer to save than spend on stuff I don't need, I would probably benefit from such a plan. However, I have no idea how it would or wouldn't benefit the nation. It seems like there could be some very serious repercussions.

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TPowell78 3 years, 8 months ago

I don't know much about the FairTax, but why would he say one thing on the radio and then this guy says he actually supports it? Where's the video that the article references?

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Centerville 3 years, 8 months ago

The compelling aspect of the Fair Tax is that I could have more control over how much tax I pay, as I have control over what I purchase.
The compelling aspect of the Flat Tax is that it would be immune, at least for a time, to Democrat at RINO social engineering.

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HedleyLamarrr 3 years, 8 months ago

there are a lot of practical reasons that a national sales tax is a horrible idea. For one, just consider paying 30-40% on your next major purchase, and on top of that you'd probably STILL be paying income/FICA/FUTA. Anyone that is a true conservative understands the mischief that governments can dish out with sales taxes.

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scottgreene 3 years, 8 months ago

The Income Tax system does not work and has many many problems.

It is over 70,000 pages long and those pages are then backed up by countless Revenue Rulings written to explain those 70,000 pages, followed by case after case after case in Tax Court where citizens and businesses hire lawyers to argue about what is taxable at what rates, what is deductible at what rates, what is deductible in certain circumstances and what is not deductible in other circumstances.

Certain actions get taxed at one percentage while other actions gets taxed at another percentage.
And these percentages are constantly changing.
It goes on and on and on and on.
And YOU are responsible for knowing it ALL. If not, you are penalized at usurious penalty and interest rates.

Members of Congress and the current Administration can’t even follow the Income Tax code.
Treasury Secretary Geithner did not know how to correctly fill out his personal Income Tax return and now Congressman Rangel (who writes Income Tax policy) does not know how to correctly fill out his personal Income Tax return.

And today if you talk to the government officials in charge of the Income Tax, it is next to impossible to get a consistent answer to the exact same Income Tax question.
They don’t even know.

Why would anyone be in support of such a system that is based on “maybes” or “it depends” that only gets worse year after year after year?

Imagine how many more thousands of pages and Revenue Rulings to explain those pages plus additional Tax Court cases there is going to be in another 10 years

The Income Tax system is loaded with problems.
It NEVER improves. It only gets more complicated, confusing, paper intensive and mind numbing. It needs to be replaced now.

The only argument that should be occurring between these 2 congressional candidates is what our country’s new tax system should be.

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chugalugalug 3 years, 8 months ago

PLEASE CONSIDER THIS ALSO:

22% of the price of all that you buy currently is tax / tax compliance cost. When that cost goes away (under the Fair Tax) the price of your $1.00 item (purchased at Wal-Mart, for example) drops in price to 78 cents (without damaging WAL-MART's profit margin).

1.23 X 78 cents = 96 cents.

Seeeeeeeeeeeeeeee!!!! Even with the 23% Fair Tax added on, your originally $1.00 item is now 4 cents cheaper.

The "out-of-pocket" cost of living , under the Fair Tax , will be no more than it is now.

Under the Fair Tax there are NO LOSERS, only winners, the difference being that some win BIGGER!!!! than others due to their increased FRUGALITY.

Best Regards, John Paul McDaniel

Go to: www.fairtax.org

>
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average 3 years, 8 months ago

From a green perspective, I say go for it.

A consumption tax would give advantages to things like shoe repair and auto repair (Hey, Cuba) over buying new ones. And repair can quickly go toward under-the-radar skills barter. "Repair my mower, I'll babysit your kid, and we'll both avoid the 35%+ FairTax". Right now, there isn't much incentive for the lower-earning half of the population to go under-the-table. 9% state sales tax, yes, but since they don't pay federal income tax, there isn't an imputed income tax to avoid.

From the consume-consume-consume economy-as-we-know-it, it'd be a wrecking ball. Which is why groups like the National Chamber of Commerce are strongly against it, and why it's never going to happen. But, from a green perspective, rock on.

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Snodgrass 3 years, 8 months ago

Fair tax is too fair. That would mean Democrats would have to pay the same as everyone else. Now that is simply not fair. For the Democrats, the IRS is the only fair way to go. Control of societal manipulation is the only Democrat fair meme to go.

Democrat fair tax is what the issue should be. The Democrats need more control to be fair.

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conservative 3 years, 8 months ago

A national sales tax makes perfect sense. Elliminate the irs and all loopholes. Exempt neccessities like food, clothing, and medicine. If you don't make enough money to buy anything that isn't essential then you don't pay any taxes. If you want to cut how much you pay in taxes then don't buy luxuries.

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mr_right_wing 3 years, 8 months ago

Fair tax Easy tax Logical tax Simple tax

Words that I don't think will ever go together in this country. We can still dream though...

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