Zera's Blog

A Citizen's View from Main Street

Eric Cantor Admits That Fair Tax Act Is Based On A Fraud


Representative Eric Cantor of Virginia

Image via Wikipedia

The FAA shut down over House Republicans’ insistence on including anti-union provisions in the agency’s re-authorization bill and the airlines are poised to collect $1.3 billion or more of extra profits in forgone taxes. With the FAA unable to collect the $28.6 million a day in aviation taxes it usually takes in, some of the […]

This has become a most interesting situation.

CANTOR: And what airlines have done is have stepped in and said, well, if we’re not going to pay that money to the federal government, we’re going to keep it towards our own bottom line. And I guess that’s what business does.

This is not just an admission that businesses are predatory, but that conservatives approve of it. But where does the Fair Tax Act come in? Because the Fair Tax is based partly on the premise that 23% of the price of a product is due to business taxes, and if the business is relieved of that tax burden it will reduce the price 23%. Cantor has just admitted that businesses won’t do that, because keeping the money (or as much as they can get away with) is how business works.

via Eric Cantor Defends Airlines Pocketing Taxes During FAA Shutdown: ‘That’s What Business Does’.

Advertisements

September 3, 2011 - Posted by | Capitalism, GOP | , , , , , , , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: