Under the FairTax, all Americans consume what they see as their necessities of life free of tax. While permitting no exemptions, the FairTax (HR25/S122) provides a monthly universal prebate to ensure that each family unit can consume tax free at or beyond the poverty level, with the overall effect of making the FairTax progressive in application. There is no marriage penalty as the couple gets twice the amount that a single adult receives.
I'd be all for a flat-rate income tax with no exemptions, no credits, no rebates, and no withholdings.
They should end employers withholding taxes from employee’s paychecks whist tax reform is being debated. Make EVERYONE write a quarterly check to the IRS. There would be a tax revolt!
I once asked a friend how much he made. He said, “Well, I take home,,,,,” He really didn’t pay attention to how much was being taken from him. Another had more withheld than required, cuz he liked the big rebate check!
Sorry to have to tell you but you are grossly misinformed.
First, the Flat Tax is an Income Tax and requires the 16th Amendment to be constitutional.
Second, THE FLAT TAX NEVER STAYS FLAT. Don’t think for a second that our United States has never had a a Flat Tax. There have been several, starting from 1861.
Thirdly, the FairTax is not designed to be a progressive tax. Why is it then described as progressive?
The answer is because a rebate of taxes of $196 per month, the same amount for every qualified individual American, and mind you, that Rebate is a tax cut, will leave those at the poverty line untaxed and those above the poverty line will be taxed.
EVERYONE lives tax free at the poverty line and below. For those that spend above the poverty rate, they are taxed by the National Retail Sales Tax (NRST).
Because incomes vary and because spending varies according to income, the Rebate as a percentage of all NRST taxes paid will vary.
It just happens to turn out to be a graph that looks progressive; it is NOT progressive by design.
There is no income tax under the FairTax and there can never be. The Income tax code is abolished and the 16th is repealed.
There is more than ten times the support in Congress and at the grassroots for the FairTax than there is for the Flat Tax. That’s because most people start out thinking the Flat Tax is a good idea, a needed simplification, but when they get informed from history and from law, and they start to fully understand the FairTax, THEN they go with the FairTax because hands down it wins in every category.