Why not the Fair Tax?

[g5000]

Well, isn’t that the point? There won’t really need to be any tax laws. It would all be straight forward wouldn’t it? No loopholes, no deductions, just..buy a product…money goes to IRS…done deal.

Wouldn’t it be that simple ?

It is naive to think special interests would not pay our politicians to put exemptions in the Fair Tax. Just like they do now to the tune of $1.5 trillion of lost revenue each and every year.

The first exemption would be milk, and that would open the door to a trillion dollars of exemptions.

 

[g5000]

The government raises revenue whenever you consume.

Where did all my extra money come from?

From not having your income taxed.

 

[Toddsterpatriot]

From not having your income taxed.

Right. And prices remain unchanged.

 

[g5000]

Right. And prices remain unchanged.

I don't know what will happen to prices. No one really does.

The one big advantage of the Fair Tax is that everyone will notice a tax hike immediately. That will make it more difficult for Congress to hike the tax.

If you ask everyone you know, I would bet almost all of them have no idea how much they paid in income tax for 2023.

They probably just remember how much their refund was.

 

[Toddsterpatriot]

I don't know what will happen to prices. No one really does.

The one big advantage of the Fair Tax is that everyone will notice a tax hike immediately. That will make it more difficult for Congress to hike the tax.

If you ask everyone you know, I would bet almost all of them have no idea how much they paid in income tax for 2023.

They probably just remember how much their refund was.

I don't know what will happen to prices. No one really does.

I agree, but post #1 said.......

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.

 

[g5000]

I don't know what will happen to prices. No one really does.

I agree, but post #1 said.......

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.

I don't believe anyone can honestly say what will happen to prices. They may go up, they may go down, they may stay the same.

However, you will have more disposable income due to no income tax. You get to choose how much you want to consume.

A lot hinges on how many exemptions are in the tax. That's the one big flaw of any tax scheme.

 

[ThisIsMe]

It is naive to think special interests would not pay our politicians to put exemptions in the Fair Tax. Just like they do now to the tune of $1.5 trillion of lost revenue each and every year.

The first exemption would be milk, and that would open the door to a trillion dollars of exemptions.

But if the tax was built into the purchase price, how would they get an exemption, unless you’re suggesting the government would start sending out rebates, which I agree, would be against the whole spirit of the idea.