I think the APT Tax is better, but would support APT or Fair Tax, if we can get rid of the IRS.
Investing would be great because the double taxation would end.
A family of 4 (married couple) with $50,000 income; all of it spent at retail:
$50,000 - $24,980 = $25,020.
FairTax on $25,020 = $5,755
$5,755 as percentage of $50,000 = 11.5%
Effective tax rate for a family of 4 (married couple) spending all of a $50,000 income at retail is 11.5%.
yes they get a credit.
under today's system the get a credit w/o paying any federal taxes (besides payroll).
the two are not equal.
the poor person on fairtax has to get a 30% pay raise to stay equal to today's system (see post 113).
i know it is welfare - i'm not defending that aspect, i'm looking for honesty in the math.
In fact, everyone who is a legal resident of he US, has a SSN, etc, (see the bill) is eligible for the prebate if they wish it.
It is not based upon income level at all, but upon family size only. You can get it, and Bill Gates can get it, but you both pay sales tax at the same rate (as opposed to the poor paying nothing as you stated). All have a stake in the tax system in this way.
Read the bill itself and you'll see the income tax, the IRS, and the tax records all go bye-bye. Investments (or income) are not taxed at all.