BTW, please don't bastardize the language by abusing words like "voluntary" and "free-market". There's no such thing as a "free-market tax"; tax is by definition compulsory, and the free market is by definition non-compulsory. And income tax is just as "voluntary": you're free to have zero income, and hence avoid the tax.
There's no such thing as a "free-market tax"; tax is by definition compulsory, and the free market is by definition non-compulsory. And income tax is just as "voluntary": you're free to have zero income, and hence avoid the tax.
That's' like comparing a homeless person with no job to a person earning at the poverty level.
A person spending at the poverty level with the HCA prebate/demogrant will not pay any tax. They will not be forced at the point of a gun to pay tax as they are with the income tax.
The present system taxes income. It's not voluntary even when the wage-earner gives the government an interest free loan for a year and gets a full refund. The wage-earner is forced at the point of a gun to pay tax. The FairTax taxes out-of-pocket spending above the poverty level -- the prebate covers the tax. Used items are not taxed. A person can live and not be forced at the point of a gun to pay tax out-of-pocket. The FairTax is free market orientated and will lead to user fees which is free market. The income tax and flat income tax are compulsory.
A family of four spending at the poverty level has a zero effective tax rate. A family of four spending $48,000 has an 11% effective tax rate. A 22% effective tax rate applies to a family of four spending above $500,000.
a-g can you post the effective-tax-rate table? Thanks.
that certainly is not a bastardization of the language at all. It is quite correct.
There's nothing voluntary about the income tax since the very act of earning income has some goodly part of it confiscated with no alternative on your part. With the FairTax you DO have a choice of when and how much you pay in tax by controlling your consumption - and some things are not taxed at all.
In addition, income including income from investment is not taxed helping you to climb a bit up the economic ladder. That's not true with the income tax.