Letters to the Web Editor

Duane Neighbors · Joined: 10 May 2008 11:47 am Posts: 10

During the 1980's a new Chevy cost roughly $4,300. At that time Roger Smith, head of GM, testified before Congress that if the "hidden taxes" were removed he could sell that Chevy for $2,700.

The World Is Flat, and getting flatter. The only route for survival is for the United States to be able to compete in world markets. So long as we tax productivity (incomes) we cannot compete because the world price charged by an American manufacturer is inflated by that tax.

The FairTax removes those taxes from the manufacturing process and creates a more level market for American goods abroad and foreign goods here because all new goods for sale will be taxed equally.

We can continue to argue about this number or that aspect but the bottom line is that this nation will not maintain it's position in the world without major tax overhaul and the FairTax is the only proposed alternative to today's nightmare which will achieve these goals.

Bill Pelland · Joined: 25 Feb 2008 07:34 am Posts: 383

This is the same man and same company that recalled the EV1, GM's electric car in the early 90's because they claimed no one would buy it..

Now they are losing money because of over production of SUVs that won't sell because of high gas prices. They received a big tax write off as a result.

Fair Tax System = FOOLISH TAX SYSTEM

Obama for President
Rick Noriega (Afgan vet) for US Senate

Bill Pelland
Murchison, Tx

Bill Pelland · Joined: 25 Feb 2008 07:34 am Posts: 383

Did not miss the point at all. This global economy is tough. My point is the GM and Ford over the years have lacked foresight and as a result Honda, Toyota and others have gained market share in the USA. How is it that foreign car manufacturers have built plants in this country and do just fine.

After GM made that statement in 1980, President Reagan saw fit to raise corporate income taxes by 50 billion dollars and eliminate another 300 billion dollars in corporate tax cuts.

Regardless, just because we have to compete in the world and taxation is one piece of that does not justify a tax that is FOOLISH. The legislators backing this tax are not thinking it out.

Consider this: You buy a 300,000 home the year before the fair tax is enacted. Now, according to your side's arguement, the price of that home drops by 25% to 225,000. A person buying a new home comparable to yours will pay 292,500 but 67,500 will be tax. If you had to sell for some reason, even if you could get the 300,000 you paid, the government would realize 90,000 of your sale and you could not even recoop what you owe.

'UN' FAIR TAX - Still a bad idea.

Obama for President
Noriega for US Senate.
(STOP THE FOOLISHNESS AND VODOO ECONOMICS)

Bill pelland

Duane Neighbors · Joined: 10 May 2008 11:47 am Posts: 10

Yes Bill, you did miss the point. The reference to GM was to show the effect of hidden taxes on the price of goods in this country and the reason this nation cannot compete internationally. I simply don't care if the auto makers are good or evil, it's not to the point.

Auto makers have so many suppliers, each a corporation paying taxes, whose cost of doing business is inflated by those taxes and included in the price of the goods they sell. Please remember that corporations do not pay taxes. They simply pass that cost, eventually to you and me, through the price of their products.

Other countries have mechanisms which remove their internal taxes from exports. We cannot do that with our current system so we cannot compete internationally.

I'm not talking about a particular rate here or an exemption there, this is much bigger. I do not believe this nation can survive without the ability to sell our goods internationally and that will not happen with our current tax system. The FairTax is the ONLY existing proposal which allows us to compete. If you know of another, please let me know.

Duane Neighbors · Joined: 10 May 2008 11:47 am Posts: 10

Bill, your new home example is all wrong.

First, the cost of manufacturing the home would drop under the FairTax. When the tax is added, because it is a NEW home, the price would be approximately the same as pre FairTax.

Second, when you sell that home there is no tax because the FairTax is ONLY on NEW products and services. Under the FairTax goods are only taxed once. The only new product or service exempted is education costs.

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