A Tax Break for Driving to Work? The Fair Tax Will Fix This

North Star Writers Group ^ | August 20, 2007 | Herman Cain

[Principled]

The rebate is paid in monthly installments in advance to any legal resident with a valid SSN who chooses to receive it.

There is no requirement to have any particular income or spending level to qualify for the rebate. Bill Gates can get it just like I can - like how Bill Gates and I both can take today's standard deductions and exemptions.

But as a private citizen, there is no longer any need to file a return of any kind w/ the IRS [save your annual rebate form to the analogous agency - if you want to accept it]. Whatever the problems, this situation would be a "damn sight" better than what we have now.

If you reject a proposal based on the assumption that it may eventually turn back into something as bad as we have now, you will not ever have an acceptable alternative. Anything could change back into what we have now!

Does that mean you actually support the graduated income tax?

[Principled]

BTW FWIW I am an nrst supporter - it just happens to be that the leading proposal is HR 25, the "FairTax". I don't care what they call it.

So you may characterize me as a "fairtax" supporter, but it would be more accurate to call me an "nrst" supporter.

[Mr. K]

Have you ever been to Canada where they have a NSRT (or closest thing to it)

I live right across the border and THEY HATE IT WITH A PASSION

I prefer a flat tax as fairest of them all. Any of the choices are bad, but this one has the fewest pitfalls.

[Principled]

I will agree that the flat income tax is an improvement over what we have. But the tax system in Canada is very close to the flat income tax, and is the polar opposite of an nrst.

The singular likeness in this context is that both collect tax at retail.

An nrst collects tax once and only once at the point of final retail consumption and all tax is represented on receipt. A VAT however [like the flat income tax - or graduated income tax] adds tax at every stage of production, with the total tax being hidden within the final retail price.

Interestingly, the flat income tax is a VAT. Specifically, it is a subtraction method VAT.

Canada has a 36% corporate income tax and a 15-30% [iirc] personal income tax rate on top of the GST.

Canada doesn't have anything like the proposed nrst.

[steveyp]

I’m not averse to the fair tax concept, and would prefer it to the current income tax scenario. The only way to change the rebate (or base it on means) is if the federal government is aware of your income. To be aware of my income I would have to share it with them. To share it with them would require the IRS.

If the Feds don’t know my income then they can’t means test it.

Honestly, I haven’t given it a lot of thought given the inertia the proposal has to overcome.

[Go_Raiders]

Are you listening to yourself? how long will that last? Until people start screaming “why do the rich get the same rebate as the poor”

The whole idea is that the IRS goes away, so no one knows who’s rich or poor.

If that can’t be accomplished, then there is no Fair Tax.

[Principled]

He he he... the "poor" will get a much, much larger pct of spending as a rebate than the rich...

Wouldn't that be poetic justice to use this "argument" against them! LOL