The Biggest Misstatements of the Midterms - Newsweek


Taxing the Truth, Part II
In dozens of TV ads, Democrats or Democratic-leaning groups accused Republicans of favoring a 23 percent national sales tax, as though such a thing would come in addition to existing taxes. The attacks (which were also made in fancy mail pieces) amounted to a misrepresentation of the "FairTax" proposal. The claims failed to mention that the sales tax would replace — not add to — existing federal income and payroll taxes. Democrats also left out any mention of offsetting rebates designed to mitigate the increased cost of essentials like food and medicine — a main feature of the FairTax proposal.

In the past, we’ve written about the FairTax from the other side: In 2007, we pointed out misleading claims by FairTax proponents. We noted that a bipartisan panel of tax experts — put together by President George W. Bush — had rejected the idea and said the tax would have to amount to at least 34 percent (not 23 percent) of the sales price of goods and services to raise enough revenue to replace other federal taxes. [Ed: The irony is they also twisted the FairTax in order to condem it. Rebuttal here.] But that’s no excuse for misrepresenting the proposal, so this year our darts are pointed the other way.

The full article is here.


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