GOP Rep Buddy Carter asked about the fair tax hitting poor Americans hardest: “If you don't want to pay a tax, don’t buy it. It's as simple as that”

[Marener]

A VAT wouldn't allow that as an exemption.

The most exemptions would be at the low end of the scale, food, clothes, household items, all below a given threshold.

There is even concepts involving "refunds" on a quarterly basis for basic items but I find that to be too much like the government giving handouts.

All of these are contingent on eliminating the income tax. A VAT tax would be a replacement, not a supplement.

Business expenses are exempt from the Republican's plan so a business owner could live in a house and claim it's a business expense tax free.

The refund given to each family is the tax rate times the poverty rate. So basically every family gets a check from the government every quarter. How conservative.

Given that poor people spend higher percentages of their income than rich people, the tax burden (as a whole) would go up for poor people and down for rich people.

 

[martybegan]

Business expenses are exempt from the Republican's plan so a business owner could live in a house and claim it's a business expense tax free.

The refund given to each family is the tax rate times the poverty rate. So basically every family gets a check from the government every quarter. How conservative.

Given that poor people spend higher percentages of their income than rich people, the tax burden (as a whole) would go up for poor people and down for rich people.

If that's allowed as a business expense.

Again, I said it's not something I agree with.

Again, not if necessities, which poor people spend most of their $$ on, is excluded.

And poor people should be required to pay at least some taxes, everyone needs to have skin in the game.

 

[Marener]

If that's allowed as a business expense.

Again, I said it's not something I agree with.

Again, not if necessities, which poor people spend most of their $$ on, is excluded.

And poor people should be required to pay at least some taxes, everyone needs to have skin in the game.

Poor people do pay taxes, especially payroll taxes. Their tax burden is significant and underestimated by most people.

Necessities are always done on a total cost basis for these proposals. I.E. the first quantity of income is exempted. You could start to exempt categories like food, clothing and shelter, but then you've seriously reduced your tax base and helped rich people enjoy designer clothes tax free, or expensive houses tax free.

All business expenses are exempt from the Republican plan, so the best way to cheat your taxes is just to declare a lot of stuff business expenses, which already happens.

 

[martybegan]

Poor people do pay taxes, especially payroll taxes. Their tax burden is significant and underestimated by most people.

Necessities are always done on a total cost basis for these proposals. I.E. the first quantity of income is exempted. You could start to exempt categories like food, clothing and shelter, but then you've seriously reduced your tax base and helped rich people enjoy designer clothes tax free, or expensive houses tax free.

All business expenses are exempt from the Republican plan, so the best way to cheat your taxes is just to declare a lot of stuff business expenses, which already happens.

When people talk "taxes" they all mean income taxes, and poor people get refunded money they don't even pay.

 

[Marener]

When people talk "taxes" they all mean income taxes, and poor people get refunded money they don't even pay.

So just ignore what you don’t want to acknowledge then.

Typical

 

[martybegan]

So just ignore what you don’t want to acknowledge then.

Typical

No, I don't fall for the payroll tax excuse.

 

[g5000]

New GOP economic plan: Hey America, stop buying food, clothes, tires, or cars!

Republicans worry a national sales tax bill would be a ‘political gift’ for Democrats | Semafor

Kevin McCarthy promised to finally bring a decades old conservative idea to a vote. Not everyone in the party is thrilled about it.

www.semafor.com

There is a rebate for lower income families which mitigates the regressive nature of the Fair Tax.

 

[g5000]

There will be exemption after exemption after exemption based upon campaign donations just the same as tax breaks.

And we will be right back to trillion dollar deficits as a result of all the exemptions.

 

[g5000]

Business expenses are exempt from the Republican's plan so a business owner could live in a house and claim it's a business expense tax free.

The refund given to each family is the tax rate times the poverty rate. So basically every family gets a check from the government every quarter. How conservative.

Given that poor people spend higher percentages of their income than rich people, the tax burden (as a whole) would go up for poor people and down for rich people.

The rebate negates the regressive nature of the Fair Tax.

 

[Marener]

The rebate negates the regressive nature of the Fair Tax.

Probably for the very poor, those near the poverty level. It's going to hit a lot of people who are above the poverty level, including a big chunk of middle class who still live paycheck to paycheck and don't pay anywhere near 30% tax rates.

 

[busybee01]

Most value added taxes either subsidize or exempt certain life required purchases.

And the added bonus is you guarantee richer people pay far more in taxes than poor people do.

No they do not. The rich pay a far smaller percentage of their income in taxes under a national sales tax. It represents a huge tax cut for the rich.

 

[martybegan]

No they do not. The rich pay a far smaller percentage of their income in taxes under a national sales tax. It represents a huge tax cut for the rich.

It wouldn't be a pure sales tax, but a VAT, or some model of that.

And the rich would be taxed on money going OUT, not IN, so only the hermit rich would be able to avoid it.

 

[skews13]

New GOP economic plan: Hey America, stop buying food, clothes, tires, or cars!

Republicans worry a national sales tax bill would be a ‘political gift’ for Democrats | Semafor

Kevin McCarthy promised to finally bring a decades old conservative idea to a vote. Not everyone in the party is thrilled about it.

www.semafor.com

Depends on what he means by fair tax. Fair tax is simple.

A single person making $50k or less pays no tax

A married couple making $100k or less pays no tax

Anyone living on Social Security pays no tax

All capital gains should be taxed from 15%-50% depending on the size of gains

All Wall St transactions should be taxed at 5 cents per transaction.

A luxury tax of 50% should be levied on yachts and private planes.

No personal property taxes on any value of less than $250k

No loop holes or deductions allowed period.

States can set their own sales taxes