Friday, October 22, 2010

PolitiFlub: The SEIU take on the Fair Tax

I don't have time to do a full in-depth grading on every flawed PolitiFact story I see, hence the new story category, "PolitiFlub."

PolitiFact very recently posted a new story about an SEIU ad attacking a Republican candidate for one of  Indiana's congressional seats:


PolitiFact commits at least one major blunder in concurring with the SEIU that the Fair Tax would result in double taxation.  The PolitiFact story omits the fact that income and Social Security taxes are already embedded in the things we buy.  So seniors are already double-taxed as it is, but the taxes are hidden in the cost of the item.

PolitiFact used FairTax.org as a source, yet apparently neglected to notice a key statement:
The tax is completely transparent in that it is easily seen and understood at the time of purchase. As such, it makes clear to the citizenry the amount of federal revenues collected. This transparency also makes embedding “hidden” federal taxes almost impossible, unlike the current system which taxes goods and services multiple times before the point of purchase.
It isn't certain at this point whether the rate of the Fair Tax would necessarily exceed the current amount of embedded taxation.  Some claim that the 23 percent rate would prove insufficient for maintaining the government's current funding level.  But that's another story.  The story here has PolitiFact omitting information critical to a proper understanding of the Fair Tax and thereby lending the SEIU undue credibility.

No comments:

Post a Comment

Please remain on topic and keep coarse language to an absolute minimum. Comments in a language other than English will be assumed off topic.