This idea is very intriguing. It never seems to catch on however. I don't know much about it, what are the downsides? It seems like it would save us billions, and allow us to control, to some exstent, how much we are taxed.
The way that I think of government is that they are good at national defense and building roads. Everything else they screw up, especially education, social security, and health care. Just realize that whatever money they suck out of us WILL be wasted and spent inefficeintly.
Final thought. I caught the statement about giving some kind of break to low income people. One could argue that corporations will also realize a tax break and pass it along to consumers in the form of lower prices.
I think the downside is that the 23 percent could easily be raised. Also people would start to barter to avoid paying the sales tax.
The down side is that it probably puts lots of tax lawyers out of business!
The downside is the high percentage, but that is more of an indictment on the current scope of the government. The upside is that everyone will be forced to face the fact of the cost of our government.
Educate yourself: http://www.fairtaxvolunteer.org/smart/faq.html
It is not that new of an idea. I would support it only if the income tax Amendment were repealed. Otherwise, they would pass the NRST and eventually creep the income tax back in when they needed more $ - instead of cutting spending.
One downside is that older people who have already paid income tax on all their income would be double-taxed on their savings.
One work-around is to provide a tax rebate based on age that would phase out over 10-20 years. Of course, an NRST plan includes an automatic payment to every household to return the tax paid on poverty level spending. I.e. if the poverty level were set a $15,000 per year, each person would receive $2300 in tax rebates ($256 per month check in the mail). Another rebate could be offered based on age.
You're right. Also, illegals, drug dealers, prostitutes, etc. who don't pay taxes now still have to buy bread and milk. Go to PAFairTax.org and find out about the prebate that these people would not receive. Find out how much your state government pays in FICA taxes and you will see how much your state would save in their budget. In Pennsylvania we would save 700 million dollars. The tax would be collected by each state. 47 states already collect sales taxes so they already have the mechanism in place. For their efforts in collecting the tax each state would receive 1/4 of 1% of what they. Each company (Wal-mart)also receives 1/4 of 1% of the taxes they collect.
The FairTax also eliminates all the hidden taxes paid by companies. Remember companies don't pay taxes. They add them on to the price of goods and services. We pay their taxes. Under the FairTax these prices should be reduced by about 24%. You say how do we know prices will come down? I call it the Wal-mart factor. If they can sell something for 24% less they will and everyone else will follow.
If Burger King reduces their prices and the other's don't we'll go to Burger King.
This bill eliminates the IRS.
If you want to make congress aware that we need to pass this HR25 call your representative and request a copy of the bill. Call your senators and request a copy of S25.
And what do you know about Ideas? Your name is latin... A dead language... left to those who refuse to condemn the sins of Rome. Why dont you concentrate on reforming yourself instead of social security.You people are distgusting... Damn Distgusting.