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To: Texas_Conservative2
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.

That is incorrect. No one will not get back all the tax money they spent. The rebate will not cover goods that are not neccessities. Many services are not covered in the rebate. Therefore people of all economic classes will have to pay taxes. The amount of taxed paid is determined by the individual. A person won't have to pay a tax if they don't want to buy a good or service. As a rule of thumb, the more money people have,the more they tend to spend. The more they spend, the more they pay in taxes. Congress could raise the poverty level but that would only give back more money and reduce the tax base. I doubt the Democrats would support that idea. The current tax system makes it easier for people not to pay taxes than the Fair Tax because of all the deductions allowed by the IRS. Whatever amount people pay in taxes with the Fair Tax will not effect you because you will still get 100% of your paycheck.

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 tax base will increase if more people pay taxes. You are correct when you state the percentages paid with the current system. The tax burden will shift and be more balanced because all the deductions allowed by the IRS would be eliminated. The difference in the amount of taxes paid by any economic class will be based on how much people decide to spend.

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

You're right. Many people don't pay taxes with the current tax system based on all the allowed deductions. Those deductions would be eliminated. They would have to pay taxes when they make a purchase. As I stated in my previous post, the tax will be revenue neutral but the important difference is compliance will improve.

26 posted on 08/02/2005 12:41:02 PM PDT by Man50D
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To: Man50D

quote "Congress could raise the poverty level but that would only give back more money and reduce the tax base. I doubt the Democrats would support that idea"

you keep assuming the tax rate would remain the same.

what the democrats would do is raise the supposed poverty level which would shift the tax burden to the rich and then raise the rate to make up for the shortfall.

Your right that the dems would never accept less money, I didn't mean to imply that they would.

They will just keep raising the supposed poverty level and the rate until 90% of the population is considered living in poverty and the remaining 10% pay a 200% tax on every purchase.


28 posted on 08/02/2005 12:50:02 PM PDT by Texas_Conservative2
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To: Man50D

is there a web link where I can read more about this ?


29 posted on 08/02/2005 12:54:30 PM PDT by Texas_Conservative2
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