[AnalogReigns]

Reading the article, it sounds to me that the hidden taxes the poor and even lower middle class now pay...that 22% embedded, and 8% FICA would be eliminated for them.

Of course for the same government, the same money has to come from somewhere, and I'd suggest since it would be collected on the spending side, it would be the upper middle class and higher who do the most consumer spending. The poor, sauvy investors, and misers would make out the best. Don't spend, don't pay...would discourage the current consumerism (short-term gratification), and encourage investment for the future. I don't get bitter opposition to it...

As to it's prospect of passing, at this point dismal...but our current system is definitely horrible. What would either of you propose as an alternative?

[pigdog]

You're basically right - and check the link I gave in #52 to quantify that.

In addition - though often not mentioned - is the fact that the illegal economy which now evades the income tax will becomes losers under the Fairtax since hey'll pay when they buy at retail. In addition, the economy will expand greatly offering far more benefits to most people.

Even the prebate helps many.

[socialismisinsidious]

"...would discourage the current consumerism.."

I don't think that would be such a bad thing although I don't think that is what would happen.

I know of people who are 80K in credit card debt and they still "spend" like drunken sailors.
In this society if people want something they go out and get it and I think that would continue especially since prices under the fair tax will not be much different than they are now....people are not going to change.

Economic projection shows the economy doing better under the FairTax, people will have all of the money that they make so the drunken sailor spenders won't slow down, if anything they will spend more.