Soapweed
Well-known member
Hi Derry,
I always enjoy listening to your show. Quite a bit of the time we agree on issues, and sometimes we don't, but always it is entertaining.
A couple days ago you had a guest on who was advocating a new "fair tax" system. At first it sounds good, but there are sure concerns that need to be addressed. The beginning percentage of the tax, as I understand it, would be a flat 23% on anything new. You can rest assured that even though 23% is the beginning tax, it would never after that ever go down. Undoubtedly it would go up.
The "fair tax" or "consumption tax" would distort values. A potential buyer could afford to pay more for a "slightly used" tractor than he could for a brand new tractor, because he could save 23% right off the top. There would be no tax on the used tractor.
To my way of thinking, the sales of anything brand new would almost come to a complete standstill if this proposal was ever enacted. Every potential buyer would buy something used or learn to get along without.
Spending should be encouraged to keep the economy in full swing. If consumers are spending money, manufacturers are making money, and laborers are earning an income. This all works for the best interests of everyone.
A feeder buying a potload of steer calves would have to pay an additional 23% added right on to the purchase price of the calves. Don't think that wouldn't be hard to get used to doing. As an example, for awhile in Nebraska a sales tax was added onto the value of a saddle horse (fortunately that law has been rescinded). I have bought and traded horses for fun all my life, but when that law was in effect, I pretty much curtailed my horse buying and just got along with the horses we already had on our ranch.
Anyhoooo, sometimes we're better off not getting what we wish for. I think this "fair tax" might turn into a big heavy iron white elephant hung on a log chain around our necks. As the song goes, sometimes God's greatest gifts are unanswered prayers.
Take care,
Soapweed
I always enjoy listening to your show. Quite a bit of the time we agree on issues, and sometimes we don't, but always it is entertaining.
A couple days ago you had a guest on who was advocating a new "fair tax" system. At first it sounds good, but there are sure concerns that need to be addressed. The beginning percentage of the tax, as I understand it, would be a flat 23% on anything new. You can rest assured that even though 23% is the beginning tax, it would never after that ever go down. Undoubtedly it would go up.
The "fair tax" or "consumption tax" would distort values. A potential buyer could afford to pay more for a "slightly used" tractor than he could for a brand new tractor, because he could save 23% right off the top. There would be no tax on the used tractor.
To my way of thinking, the sales of anything brand new would almost come to a complete standstill if this proposal was ever enacted. Every potential buyer would buy something used or learn to get along without.
Spending should be encouraged to keep the economy in full swing. If consumers are spending money, manufacturers are making money, and laborers are earning an income. This all works for the best interests of everyone.
A feeder buying a potload of steer calves would have to pay an additional 23% added right on to the purchase price of the calves. Don't think that wouldn't be hard to get used to doing. As an example, for awhile in Nebraska a sales tax was added onto the value of a saddle horse (fortunately that law has been rescinded). I have bought and traded horses for fun all my life, but when that law was in effect, I pretty much curtailed my horse buying and just got along with the horses we already had on our ranch.
Anyhoooo, sometimes we're better off not getting what we wish for. I think this "fair tax" might turn into a big heavy iron white elephant hung on a log chain around our necks. As the song goes, sometimes God's greatest gifts are unanswered prayers.
Take care,
Soapweed