Otherwise known as a consumption tax.
From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:
Part 1:
Part 2:
Part 3:
Part 4:
Part 5:
And here’s another talk he had on it that gives more context:
Neal Boortz FAIRtax vs Republican Tax Plan
So, the key points are:
Eliminates all federal taxation from your check.
You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)
Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.
There is no longer a need to file taxes, so there is no longer a need for an IRS.
Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.
How it’s done:
A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.
The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.
The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.
Here’s how it works:
The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.
$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.
*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.
So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?
From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:
Part 1:
Part 2:
Part 3:
Part 4:
Part 5:
And here’s another talk he had on it that gives more context:
Neal Boortz FAIRtax vs Republican Tax Plan
So, the key points are:
Eliminates all federal taxation from your check.
You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)
Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.
There is no longer a need to file taxes, so there is no longer a need for an IRS.
Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.
How it’s done:
A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.
The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.
The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.
Here’s how it works:
The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.
$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.
*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.
So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?
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