Fair Tax
I first became aware of the widespread interest in the FairTax
movement in February of this year. I received an email from “Wild
Bill” requesting a position.
I wasn’t familiar with FairTax
as my focus had been forging a new era of economic prosperity for
Georgia through solving problems in education; social issues rooted
in poverty; and, transformation of Georgia’s flawed economic
development effort.
My response to Wild Bill was based on a
convincing account stated by Governor Roy Barnes in an interview
with Neely Young in the June ‘05 issue of Georgia Trend magazine.
Governor Barnes advanced a short, but effective and convincing
argument that FairTax was not the way to go. Without further
investigation I bought his explanation. Wild Bill and I agreed to
disagree.
The FairTax did not surface again on the campaign
trail until one day in late March. I was having lunch with one of my
campaign leaders. He invited a friend, a judge, to join us. The
judge approached the FairTax issue. I repeated that which I had
shared with Wild Bill. The judge wasn’t impressed. He presented his
case for FairTax in an intellectually, theoretically, and
academically convincing manner. But, he used an example that left
him open for a shot. I took it. He was caught off-guard, but that
didn’t matter.
Both being prudent and reasonable men, we
agreed the approach pursued by the head of state of Georgia should
be thorough. I suggested a study should be commissioned and led by
two renowned economists in Georgia’s University System- one for and
one against. The study should utilize doctoral students to conduct
the research.
Basically, we agreed there are hundreds of
taxpayer situations. Every single one of them should be identified.
Then our research team enlists some number of volunteer taxpayers
from each specific category to participate in the study. The
research team records their earning and spending habits of the past
five years and forecasts their earning and spending habits for five
years into the immediate future.
Once the information is
compiled, the research team will document their conclusions. They
will also paint a picture that identifies, by group, those that will
benefit, those that will be hurt and those that will
breakeven.
There is one other issue. All of the literature I
have seen on FairTax advances the theory that competition will
“eventually” reduce prices of all goods and services equal to
corporate income taxes and tax compliance expenses. Theoretically,
these savings are anticipated to be very close to initial increases
in sales tax rates. Therefore, there will be an immediate increase
equal to the conversion rate of income and payroll taxes to sales
taxes that must be absorbed. But theoretically, the rate will
quickly diminish and equate to an estimated net increase of 3% in
sales tax rates.
I have a problem with that assumption.
Nonetheless, I have an objective predisposition to pursue this
matter until it can be undeniably established one way or the
other.
There is another problem. Whoever the governor is that
leads the charge for FairTax, is the lead spokesperson and salesman.
He must sell it to the public! Therefore, there is no room
for error. Only a fool would subscribe to such a dramatic
change in taxation without being thoroughly convinced it is, without
a shadow of a doubt, the right thing to do.
So? Am I a
proponent? No. Am I open-minded and objective? Yes. Will I commit to
commission the research? Yes.
Is that the end of the story?
No. A month ago I met with two officers of FairTax.org. They
presented their case. The presentation was similar to the judge’s.
After a lengthy discussion, I asked this question. If this meeting
was with the governor, how would you answer this question, “What
exactly do you want me to do?”
The answer came from the
Southeast Regional Director of Americans for Fair Taxation-
“commission a study”!
Sounds like proponents of FairTax and
I are on the same sheet of music and I believe I am the only
candidate that has made any commitment at all.
If you are a
FairTax supporter and you agree, I need your help to get on the
ballot.
Send an email to my headquarters chairman@dashlerforgov.com
and request some nomination petitions so you can begin collecting
signatures. Don’t delay. Only 6 weeks remain.
I plan to
attend Boortz’ FairTax event at the GCC on the 24th. I’ll be in my
RV which is easy to recognize with the Dashler for Governor decals
on sides and rear. If you want to share your thoughts, drop by. I’m
interested in listening and learning more.
Thanks,
John Dashler,
Independent Candidate for
Governor
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