Replies

"Are they just protectiong thier personal loop hole?"
Nope. Existing already taxed money [cash, savings accounts, Roths] which under the present tax regime can be spent without income taxation, and with minimum [or no] sales taxation, will become liable to 20+% sales tax under this so-called "fair tax" system. Double taxation is not fair in any sense, so to avoid it one would need to up-index by decree all aftertax money at the moment of transition.

So if you got a debit card (for the tax amount on the already-taxed savings) that could only be used to pay the FairTax on items you purchase, then you'd be a FairTax supporter ?

Minus the income tax you'd have owed on the future earnings of that savings, of course.

And also minus the income tax you would have owed on other unrealized gains in assets such as your home, stocks and bonds, gold, collectibles, etc., of course.

And, of course, minus the taxes deferred but still owed on any 401k, pension payments, or (non-Roth) IRA disbursements.

Right ? I mean, you wouldn't want to unfairly get all the benefits of eliminated income taxes and ALSO be compensated for the taxes on spent savings. Right ?

"Double taxation is not fair in any sense, so to avoid it one would need to up-index by decree all aftertax money at the moment of transition."

What do you mean by this? I'm 54, with a lot of already-taxed savings a 401K, future social security and pension income. I see absolutely no problem with the FairTax. The double taxation that you speak of occurs massively in the present system. To give an example, your social security payments will be taxed, but your payments to social security were a tax. Your savings will be taxed to pieces because you, as an individual who will buy things until you die, will pay every penny of taxes that are levied on the businesses and services you patronize, as well as their tax compliance costs. When you die, your life's accumulations will be taxed either directly, or later when they are spent by your inheritors, or both via the above embedded taxes. If you are so decidedly against double, triple and quadruple taxation as you profess, you should be head over heels FOR the FairTax.

I keep seeing this argument. Get the fscts. when you spend your "already taxed" dollars today you are paying the imbedded taxes. Under the fair tax, prices of most things will be about the same, the Fair Tax replaces the imbedded tax.