Why not the Fair Tax?

[Dragonlady]

The plan is no good for other reasons, but it does greatly simplify taxes, and many countries do this instead of the complex progressive income tax we have.

Which countries? Name one.

 

[DudleySmith]

It would destroy the current economy, which now relies entirely on retail consumption and loan sharking bubbles, not manufacturing and productive work. There is only a small middle class left as it is.

 

[DudleySmith]

Forgot about that. Taxes are collected only one time on purchases.

Honestly though, now that I’m discussing it…it does make me wonder how it would affect revenue. The government would be losing all income tax from people and companies, no more sales tax on used items, no social security or Medicare tax..it is starting to make me wonder if the consumption tax would be able to replace all of that

Not to go back on my original argument but I only brought this up because I was curious about what other people thought of it.

I’m seeing that most people think it’s a bad idea, which is fair (no pun intended)

Yes. We won't be funding a viable military just on Yacht sales and gold watches.

 

[noonereal]

every tax dollar would come from the point of sale instead of withholding, so there is a serious opportunity for sellers scamming the tax revenue.

Not really. This is a very serious crime.

 

[DudleySmith]

Which countries? Name one.

Which one are you pretending to live in this week?

 

[DudleySmith]

At every level of production being manufactured there is a tax. From the ground up in all ways to the final product. It adds up.

Like what? I never paid any sales taxes on materials I used to make my products which were in turn sold to wholesalers.

 

[Toddsterpatriot]

It's a shared burden. Like sales tax. Everyone pays taxes. That's figured into gross pay offers.

If the income tax is zeroed out, your employer will cut your salary?

 

[Billiejeens]

It’s an excellent idea.

- The government gets its 23%

- No consumption tax on basics, provided in the form of a probate.

- Americans aren’t double-paying taxes (the imbedded 23% in the price of the toaster PLUS income taxes)

- We can abolish the IRS and cut the cost of government operations

(There will be a big lobby from financial consultants, tax attorneys, and accountants to block it, though.)

It is the most researched and analysis driven plan out there.
Any reasonably intelligent person who is against it, doesn't understand it.

 

[Billiejeens]

It will never pass
Congress won't give up the power to tax.

 

[LeftofLeft]

What is not working is the Left’s refusal to cut spending and thinking that there is so much more money to take from what they say is a never-ending pool of rich people. What ends up happening is that the pool of rich people is limited so now they need to expand their definition of “rich.”

 

[Concerned American]

What is not working is the Left’s refusal to cut spending and thinking that there is so much more money to take from what they say is a never-ending pool of rich people. What ends up happening is that the pool of rich people is limited so now they need to expand their definition of “rich.”

Of course, America courts the rich--as they should. Countries who don't court the rich end up sending their rich to the countries that do. It is common sense and human nature. How many exports do you see in your stores from Bolivia? The rich create companies that provide jobs, stable societies and yes a tax base. What is better? A working populace with a tax for the common good or a non-working populace that have no services and clamor to walk from S. America to N. America.

 

[BluesLegend]

Of course, America courts the rich--as they should. Countries who don't court the rich end up sending their rich to the countries that do. It is common sense and human nature. How many exports do you see in your stores from Bolivia? The rich create companies that provide jobs, stable societies and yes a tax base. What is better? A working populace with a tax for the common good or a non-working populace that have no services and clamor to walk from S. America to N. America.

In the Dems utopia nobody is allowed to be rich and everyone gets an equal share. Total fantasy land but that's what rich Dems tell the Dem cult.

 

[frigidweirdo]

Ok, if people are given a prebate, that would help offset the cost of basic needs, now, any extra purchases would be more difficult for poor people, I can see that, however, wouldn’t the boom in business create a scenario where companies could hire more people and pay higher wages?

No. Businesses wouldn't pay more.

And there wouldn't be a boom in business because you'd need higher sales tax to offset all the billionaires and millionaires not paying much tax at all.

 

[Concerned American]

In the Dems utopia nobody is allowed to be rich and everyone gets an equal share. Total fantasy land but that's what rich Dems tell the Dem cult.

I work for the Union 'cause she's so good to me
And I'm bound to come out on top,
That's where she said I should be
I will hear every word the boss may say,
For he's the one who hands me down my pay

Now here comes a man with a paper and pen
Tellin' us our hard times are about to end
And then, if they don't give us what we like
He said, "Men, that's when you gotta go on strike!"

Democrats and their minions, unions, feed on each other. The democrat says "we don't tax" and then they saddle their constituency with a middle man that taxes them (union dues) to pay the democrats in donations. Neither ever provide ANYTHING, but then YOU gotta go on strike. I was a member of three different unions and went on strike with two of them. I never received a dime of strike fund, but the leadership of that union continued to be paid. Screw the thieving unions and screw the globalist democrats too.

 

[frigidweirdo]

If you make 10 million per year, I’d say your yearly expenses would be more than 200,000. Remember, how much of that 10 million per year is being shielded from taxes based on loopholes, deductions..etc. The left complains that Buffet only pays a 17% tax on his “income”…so, in that case, he’s cheating the government out on taxes, right?

In the case of your guy who makes 10 million, it doesn’t matter that he makes 10 million, every time he pays a bill, 23%, lets say he has an eye on that new $300,000 Ferrari..that’s $70,000 in taxes paid…or how about that 500 million dollar yacht that bezos just bought…that’s 115 million in taxes paid on it.

I’m not saying it’s perfect because I don’t know, but..it seems like this would create a tax that cant be shielded by offshore bank accounts or loopholes in the tax code, right?

Doesn't really matter.

I'm just giving examples, rather than the the real math.

The simple fact is, if they got rid of income tax, the shortfall would be made up with sales tax, which would increase sales tax by so much, poor people wouldn't be able to afford anything.

Sales tax is a poor man's tax.

 

[Rigby5]

Yes, they are still paying $100 for the toaster. But they receive all of the gross salary. So they bring more money home.

If you make $10 an hour, and work a 40 hour week, your gross pay is $400.
Under the current clusterfuck of a tax system, you will likely pay 25% in taxes, So you bring home $300 a week.
Under the Fair Tax, you would receive $400. And your taxes would be paid with a consumption tax on what you spend.

Also, the taxes are accessed on all new goods and services. So buying a used car is exempt.

Wrong.
If you make $10 an hour, and work a 40 hour week, your gross pay is $400, but you pay 0% in taxes because you are under the poverty level.

But with the "fair tax", if you have a large family that needs clothing, shoes, haircuts, medical treatment, etc., you would be paying 23% on those items that were not currently taxed.

And the wealthy can easily find other ways to avoid the sales tax.

 

[Rigby5]

I work for the Union 'cause she's so good to me

 

[elektra]

One tax is the only fair tax, spend a dollar. Get taxed once.

No federal, state, or local taxes. No property tax. No vehicle or gas taxes. No fees collected for government services. No government recycling fees.

All government and agencies should rely on one tax, when a dollar is spent.

It is the only way the citizens will wake up to the biggest expense in our life, the governments and government agencies.

 

[Rigby5]

Which countries? Name one.

Here are some, but I am not personally familiar, just what wiki says.

{...
Top 7 Countries with Zero Income Tax

• 1. Bermuda Famous for its pink-sand beaches and turquoise waters, Bermuda also holds the distinction of having no value-added tax (VAT), sales tax, or value-added tax. The government, instead, derives its revenue from customs duties, payroll taxes, and other indirect taxes.
• 2. Monaco ...
• 3. Cayman Islands ...
• 4. Bahamas ...
• 5. United Arab Emirates (UAE) ...
• 6. Qatar ...
• 7. Oman ...

...}

 

[Mac-7]

Part of the Fair Tax is government sending out checks in the mail

Or today a more modern method of direct deposit

That makes me very uncomfortable