South Carolina "FairTax" -- Not

Here's a letter to the editor I fired off to the Charleston Post and Courier this morning.  I get so tired of all these "tea-baggers" and other right wing blow-hards who want to get rid of taxes without telling us how that money will be made up to keep essential government services running.

"I'd like to address Mr. John Steinberger's March 6 letter on the South Carolina FairTax Act.  This bill proposes to eliminate both personal income tax and corporate income tax.  According to the letter writer, the difference will be made up by 'taking away the numerous exemptions in the current sales tax code.'

Mr. Steinberger's personal example provides the best illustration of why the so-called 'fair tax' won't work.  He says if we'd had 'Fair Tax' last year instead of our current tax system, he could have kept the $5,500 he paid in state income tax and used those funds to have his house reroofed.  Clearly, he expects to keep every penny of those savings -- so under 'fair tax', who pays these extra sales taxes so that the state government can keep running?  Is it all those new business people he claims will be drawn to the state?  Oops, no, I see that under the South Carolina FairTax Act, business-related expenses will not be subject to sales tax.

So where else can we go to raise some money?  Non-profits are currently exempt from sales tax -- how about we hit them up?  What about if we increase the sales tax on food?  Heck, even poor people have to eat, so that should raise some funds.  Or maybe you just prefer to get rid of state government.  That would save even more money, wouldn't it?  Who really needs a criminal justice system, public schools, the DMV, and all those other wasteful government agencies?

Finally, I have a personal note for Mr. Steinberger.  According the 2008 South Carolina tax tables, a household that paid $5,500 in state income tax had a taxable income of approximately $85,000.00.  Congratulations, Mr. Steinberger, that puts your income well above the median in South Carolina, which was $44,695 for 2008.  I suggest if you can't afford to fix your leaky roof, maybe you could invest in some classes or a good self-help book on household budgeting."

Mary G. Douglass
Charleston, SC