Posted: Oct 01, 2005 By: Lisa Winne-Clark and Fred Clark

Subject: Election Year Issue

Comment: Given that the Tax Panel's decision on the Fair Tax vs. Flat Tax, is postponed until November 30th, 2005 and that by then, all of Congress will be taking their Christmas vacations, we would like you to consider this. Since we both are members of the Pennsylvania Chapter of the Americans For Fair Taxation, we are well-educated on the pros and cons of both the Fair Tax and Flat Tax plans. However, the cons of the Flat Tax plan well-exceed those of the Fair Tax. Although Neal Boortz's book did open up a can of worms with the wage issue, it is plain that the statement that has been made about wage deductions in regard to the Fair Tax Plan is not true, because the intention of this tax plan is to boost the economy and everyone well knows that the economy cannot possibly be boosted, if there were such unconscionable deductions in the average working person's wages. Why knock a good thing? The Fair Tax Plan consists of taxes on large purchases such as homes and cars only being assessed the first time that they are purchased, a 23% consumption tax only assessed to perishable goods, no income taxes taken out of the working person's pay (resulting in a 25% increase in net income and therefore, giving them more purchasing power)and the law of supply and demand will be applicable to many items which will result in deflation (whether on a small or large scale, there will be some amount of deflation). Whether you realize it or not, this is a win-win situation and if whoever is going up for election (either in 2006 or 2008) makes this one of the main issues that they are running on, you can be sure that person will receive a lot of votes. Not only because of the benefits that the working class person will receive, but also that the illegal immigrants and those making money "under-the-table", will be paying their equal share of the tax burden, everytime they purchase goods here in America. This will force them to become legal American citizens, like the rest of us. The Flat Tax Plan does not do all of these things. Think about it...hard. http://fairtaxcalculator.org