May 132008

Neil Boortz is a useful idiot of the welfare-police state, and it’s sad to see that the normally sensible Mike Adams is buying his book and buying what he says.

These Fair Tax people ought to think about about how this country’s first consumption tax at the federal level brought about a huge expansion of governmental power in order to enforce it, and almost brought about civil war. (I’m referring to the Whiskey Rebellion.) Introducing an excise tax on the scale that these Fair Tax people are proposing will result in huge motivations for people to use the black market to get the things they need, which will result in a huge new regulatory and enforcement mechanism.

This will be in addition to the IRS, which, contrary to what they claim, will not go away. The Fair Tax people will tell you that their tax is not regressive, because there will be rebates for those of low income. But in order to determine who has a low income, you need an organization and mechanism to do what the IRS does now.

And even with rebates, the tax will still be regressive among those who don’t qualify for the rebates, so there will be pressure to re-institute an income tax for the very, very rich. That will be extra easy to do, because a handy enforcement mechanism will already be in place, ready to resume all the rest of its old work, too.

The Fair Tax is a recipe for growing the government. But Neil Boortz opposes one reform that could actually control the size of government and perhaps cut it down to a reasonable size: term limits.