Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Texas_Conservative2
Although the fair tax system as described sounds better than what we have now, it would be a whole lot better without the rebate checks.

Everyone should pay their fair share, even those below the poverty level.

If you want to see the government actually start to reign in out of control spending, nothing will accomplish that faster than making EVERYONE pay taxes.

Once everyone is paying taxes, everyone will have a stake in seeing them lowered, and the only way to lower them is to spend less money.

The rebate system for those under the poverty level will just become the new political battleground with Democrats running for national office promising to raise the poverty (rebate check) level to shift the burden more and more to the rich.

It would also be manipulated to give democratic states more money by saying the poverty level in those states is a much higher number. So not only would you have wealth redistribution from rich to poor but also from republican areas to democratic ones.


Apparently I'm not explaining the Fair Tax very well. Everyone of all economic classes will get a rebate. The rebate will vary depending on the income and size of the family household.

I agree with you spending is out of control but there is no correlation between increasing taxes and less spending. In fact it is just the opposite. Increasing taxes will provide more money to Congress. More money means more spending. The Fair Tax is revenue neutral. This means it will collect the same amount of money as the current system.

Everyone will pay taxes with the Fair tax because new items that are not neccessities will be taxed at 23% and therefore will not be included in the rebate.
22 posted on 08/02/2005 8:41:29 AM PDT by Man50D
[ Post Reply | Private Reply | To 21 | View Replies ]


To: Man50D
quote "Apparently I'm not explaining the Fair Tax very well. Everyone of all economic classes will get a rebate. The rebate will vary depending on the income and size of the family household. "


I Think I understand you, but your missing my point.

Everyone will get a rebate based upon the poverty level (basically). So a poor family will get all the tax money they spent back, and a rich one will only get a small portion of what they paid in taxes back. The problem is the democrats will just try and manipulate the system to artificially raise the government defined poverty level so that only the top 10% will be paying taxes while the other 90% get all their money back in the form of rebates. All the dems would have to do is to declare that anyone who earns less than $500,000 a year is poor and are entitled to all their taxes paid to be refunded to them in the form of a rebate.



quote "I agree with you spending is out of control but there is no correlation between increasing taxes and less spending. In fact it is just the opposite. Increasing taxes will provide more money to Congress. More money means more spending. The Fair Tax is revenue neutral. This means it will collect the same amount of money as the current system. "

You misunderstood me, I don't want tax revenue increased I want the number of people who pay taxes to increase. Right now something like 10% of the population pays 90% of the taxes or something like that. And the bottom 50% pays almost zero. I would shift some of the tax burden in other words to the poor. The poor then would have a reason to be interested in lowering taxes.

Right now poor people could care less about taxes, because they don't pay them.

If A poor person who earns $10,000 a year has to pay $1,000 of that in taxes that he doesn't get back later from some sort of rebate, he has an incentive to vote for people who will cut government spending so that tax rates can be lowered.
23 posted on 08/02/2005 10:06:28 AM PDT by Texas_Conservative2
[ Post Reply | Private Reply | To 22 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson