Conservative Donnybrook

I (personally, not Conservative Donnybrook, as I am only a cog in the wheel) have previously endorsed the Fair Tax. Unfortunately, in attempting to keep things simple, the examples I used were inaccurate. Therefore, I shall try again, but keep in mind that this will necessarily be more complicated than the previous attempt.

Let me begin by reintroducing the players. We have Bob. Bob is the sort of guy who always wants to be first on his block to get the latest toy. And then we have Margaret. Margaret has no such compulsion and buys used goods all the time. Bob and Margaret both earn $74,000 a year in wages. They each rent a nice apartment in the same complex in Las Vegas (Clark County sales tax = 7.25%). Bob and Margaret are both healthy, stingy (they make no charitable contributions), and neither runs a business - in short, they do not have any deductions other than the standard deduction. They are both single. (We are trying to keep this as simple as possible, while still maintaining some semblance of realism.) And, just for the ease of doing the math, let us suppose they each get paid annually (one pay check per year). Let us follow them down to the car lot where they will each be purchasing a car. Of course, in order to really do this right, we have to follow them down to the car lot twice. Once prior to any changes in the tax system, and once again after the Fair Tax is adopted. Continue Reading »

I sort of understand how this talk show host feels. Here is a classic phone call from what I have come to believe is the typical Ron Paul supporter. (h/t Fumare).