[durasell]

I've seen the Fair Tax (also called by other names) kicking around for at least 20 years. And every version I've seen has two things in common:

A) Filling out your annual taxes will be easier! Do it in 10 minutes! Honest! We wouldn't lie!

B)The very rich drop their tax rate on unearned income to something approaching zero.

I have no reason to believe this scheme is any different.

[Bigun]

I have no reason to believe this scheme is any different.

Well you should because it is! The Fairtax does not tax ANYONE'S income at all! It only taxes what they choose to spend on NEW goods and services!

[ancient_geezer]

A) Filling out your annual taxes will be easier! Do it in 10 minutes! Honest! We wouldn't lie!

Certainly true if you are talking about Forbes Flat Tax, or any of the minor modifications to the current income/payroll tax system.

However, it should be noted the individual citizen does not fill out annual taxes or any such returns in a retail sales tax system. They pay tax collected by the business that remits the tax to their state tax collection agencies.

B)The very rich drop their tax rate on unearned income to something approaching zero.

What does unearned income mean to taxes collected with retail purchases? What does it matter whether the income is earned or unearned or just a can of coins you found in your back yard?

If money is spent for personal consumption by buying retail, it gets taxed the same rate whether you are Bill Gates cashing a dividend check, Tereza H. Whats-her-name clipping taxfree bond intrest, the welfare mom looking for a beer, or JoeMechanic's wife spending the hard earned paycheck.

Get your head out of the income tax box and wake up.

The FairTax legislation is designed to replace all federal income/payroll taxes with a single stage, single rate retail sales tax on the purchase of retail goods and services.

I have no reason to believe this scheme is any different.

That certainly would be true for one who has obviously not bothered to even read the content of the FairTax legislation. I suggest you bother yourself to actually look at it over on Thomas, the Congressional website, rather than merely suppose:

 

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:

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TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

• Sec. 101. Income taxes repealed.

• Sec. 102. Payroll taxes repealed.

• Sec. 103. Estate and gift taxes repealed.

• Sec. 104. Conforming amendments; effective date.

TITLE II--SALES TAX ENACTED

• Sec. 201. Sales tax.

• Sec. 202. Conforming and technical amendments.

TITLE III--OTHER MATTERS

• Sec. 301. Phase-out of administration of repealed Federal taxes.

• Sec. 302. Administration of other Federal taxes.

• Sec. 303. Sales tax inclusive Social Security benefits indexation.