House to vote on Consumption Tax and abolish the IRS

[there4eyeM]

No it's because progressive taxes are by definition unfair.

How can you say that?
Obviously, a block of butter that costs $2.50 represents a greater percentage of the income of a person earning $15000 than one earning $150,000.

 

[there4eyeM]

Nope.

Equitable taxes means everyone actually pays a fair share.

It isn't "a fair share", it is the individual's fair share.

 

[Blues Man]

The Fair Tax is not a progressive tax. You are posting out of your ass, as you obviously don't know a thing about the Fair Tax.

It's not "regressive" either it is by definition and equitable tax because everyone is treated equally.

Only people like you would think that treating people equally is a bad thing.

 

[g5000]

The only people hurt by the Fair Tax are savers after the transition who have already paid an income tax on the money they saved.

This needs to be mitigated.

 

[g5000]

It's not "regressive" either it is by definition and equitable tax because everyone is treated equally.

Only people like you would think that treating people equally is a bad thing.

You are demonstrating your ignorance once again.

Read the link I provided you.

 

[Blues Man]

How can you say that?
Obviously, a block of butter that costs $2.50 represents a greater percentage of the income of a person earning $15000 than one earning $150,000.

What does the price of goods have to do with income? Nothing.

And it's easy to fix your example by not taxing food. IMO food, prescription medicine and even clothing ( up to a certain limit) should never be taxed.

 

[there4eyeM]

It's not "regressive" either it is by definition and equitable tax because everyone is treated equally.

Only people like you would think that treating people equally is a bad thing.

Flat Tax: What It Is and How It Works

A flat tax system applies the same tax rate to all taxpayers regardless of their income bracket.

www.investopedia.com

 

[Blues Man]

You are demonstrating your ignorance once again.

Read the link I provided you.

I understand what you people mean by "regressive" and "progressive" taxes I just don't agree with the concept.

With any flat income tax rate the people who make more pay more the people who make less pay less.

 

[CarsomyrPlusSix]

No it's because progressive taxes are by definition unfair.

Correct.

By definition taxing a percentage instead of a flat amount means you are already taking more, the more of the funds involved.

To further punitively increase the percentage of seizure defeats the very point of taxing at a percentage and not a flat amount.

We should have at minimum a flat percentage, and a consumption sales tax is far superior to income seizure already - it is effectively opt in. The more luxuries you buy, the more expensive brands you choose, the more you pay, and you have the voluntary capability of reducing spending and thus reducing your burden.

 

[Blues Man]

Flat Tax: What It Is and How It Works

A flat tax system applies the same tax rate to all taxpayers regardless of their income bracket.

www.investopedia.com

I know how the flat tax works and it is not regressive it is equitable.

People who make more pay more people who make less pay less.

 

[Zincwarrior]

Interesting: Note: this is NOT a flat tax, this is a true sales tax.
*23% sales tax
*Excludes purchase of stocks, bonds, real estate, or other intellectual property.
*Businesses don't pay sales tax. I assume LLPs and LLCs wouldn't either then so people funneling personal expenses through small businesses are safe.


Text summary, full text is available:

https://www.congress.gov/bill/117th-congress/house-bill/25

This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2023, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions.

Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.

The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.

Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund.

No funding is authorized for the operations of the Internal Revenue Service after FY2025.

Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

 

[g5000]

I understand what you people mean by "regressive" and "progressive" taxes I just don't agree with the concept.

That's because you are innumerate.

 

[Blues Man]

Correct.

By definition taxing a percentage instead of a flat amount means you are already taking more, the more of the funds involved.

To further punitively increase the percentage of seizure defeats the very point of taxing at a percentage and not a flat amount.

We should have at minimum a flat percentage, and a consumption sales tax is far superior to income seizure already - it is effectively opt in. The more luxuries you buy, the more expensive brands you choose, the more you pay, and you have the voluntary capability of reducing spending and thus reducing your burden.

I have no problem with a flat percentage rate.

I don't have a problem with a national sales tax either I just think that food, prescription medicine and clothing( up to a specified cost ) should never be taxed as they are all necessities and not luxuries.

 

[Blues Man]

Interesting: Note: this is NOT a flat tax, this is a true sales tax.
*23% sales tax
*Excludes purchase of stocks, bonds, real estate, or other intellectual property.
*Businesses don't pay sales tax. I assume LLPs and LLCs wouldn't either then so people funneling personal expenses through small businesses are safe.


Text summary, full text is available:

https://www.congress.gov/bill/117th-congress/house-bill/25

An LLC will pay sales tax on items that are for business use like computers office supplies production materials etc. If they are buyin something wholesale to sell retail they do not pay the sales tax on that as the buyer does.

 

[Orangecat]

That's called a poll tax and is unconstitutional

The Constitution isn't perfect. Look at the anchor baby problem.

 

[g5000]

Interesting: Note: this is NOT a flat tax, this is a true sales tax.
*23% sales tax
*Excludes purchase of stocks, bonds, real estate, or other intellectual property.
*Businesses don't pay sales tax. I assume LLPs and LLCs wouldn't either then so people funneling personal expenses through small businesses are safe.


Text summary, full text is available:

https://www.congress.gov/bill/117th-congress/house-bill/25

They have complicated the prebate.

SEC. 301. FAMILY CONSUMPTION ALLOWANCE.

“Each qualified family shall be eligible to receive a sales tax rebate each month. The sales tax rebate shall be in an amount equal to the product of—
“(1) the rate of tax imposed by section 101, and
“(2) the monthly poverty level.

 

[Aldo Raine]

Only fair if progressive.

Explain please.

 

[Ray From Cleveland]

The Constitution isn't perfect. Look at the anchor baby problem.

That was bullshit ruling by the courts, not the fault of the Constitution. The amendment was written for the offspring of slaves, not for people that invade our country and claim citizenship.

 

[Zincwarrior]

Babies don't make good anchors.

 

[Ray From Cleveland]

You are wrong. When everyone pays the same sales tax, it is by nature a regressive tax. The tax takes a larger proportion of the income of the poor.

Thus the prebate.

We already have it where I live. It's .08 cents on the dollar. The rich pay it, the poor pay it, and anybody in between pays it.