Let me respond with a couple comments. I read some information about the TNJ and it looks like a like-minded organization except that they would like to effectively graduate the tax levels. They do state that they wish to tax capital, not investment so that is very much in line with the FairTax.

I am certainly NOT a globalist, I believe that as a sovereign nation we need to help ourselves before we are in a position to help others (like in the speach the flight attendents give when you fly - please affix your own oxygen mask before assisting your children or neighbors.) That being said, the code of conduct on their site is admirable, and in how many ways does our current tax system violate the spirit of that list? We have become a country where even the chairman of the committee responsible for taxation (ways and means committee) can’t figure out how to do his taxes correctly (to be generous, or blatantly lied in order to avoid paying taxes probably more accurately).

I understand what you are saying about the ownership of the 11 trillion. Frankly, I’ve heard much lower estimates. But, the ownership is not at issue. That the accounts in foreign banks are dollar denominated is. They are in dollars because historically we’ve had a very safe currency. But they’re overseas because of our terrible system of taxation. If we were to eliminate the capital gains tax, which would be one effect of the FairTax, then WE would be the haven. No longer would the 10% corporate and investment tax in Ireland be the shelter among others.

As for your last statement about the tax on foreign ownership, their products and services will be taxed here the same way the products and services produced here will be - a level playing field. With the VAT refund that most of the imported items enjoy from their producing countries there is no reason to give them any benfit coming in with no embedded tax component.

And, our products will face the VAT on import to their countries and for the first time anyone alive will remember be on a level playing field afar.

Jim

Although I agree with much you wrote, your comments about “pass the Fairtax and capital will come flooding home” sounds to me as though you have bought in to another Fairtax myth? Fairtax advocates are fond of claiming that trillions in offshore holdings will come back home if the Fairtax were passed. According to a White Paper done by the Tax Justice Network, (a group that tries to track offshore holdings), there is indeed $11 trillion in offshore accounts owned by wealthy individuals and businesses. However, “home” isn’t in the USA. According to the TJN, only $1.6 trillion is owned by North Americans, and there are 23 sovereign countries in North America. The estimated US owned assets amount to less than $700 billion, and the lost tax revenue at a 7% return is less than $50 billion, not enough to get excited about! And, you might also review HR25, Section 905, which lays on a 23% tax on revenue generated within the US by foreign owners. I see no possibility of all that capital flooding home. It’s a Fairtax myth. Just google the TJN and find their 2005 white paper entitled, “The Cost of Offshore”.