I think you're omitting an obvious other choice; that he doesn't care because he can do nothing about it. It wouldn't matter to him if his stub showed he paid a bazillion in tax last week- he doesn't ever see it. Withholding works that way.
If, however, he had to pull green money cash from his wallet to pay his fed taxes, he'd notice.
I wonder, is the employee who doesn't know how much is deducted from his pay check for SS going to have any interest in or ability to understand how much he pays in sales taxes?
Maybe so, maybe not. It isn't the amount that interests people so much. As noted, paystubs have no effect. The difference maker is that he will have to pull extra money from his wallet to pay fed taxes.
EVERY projection puts SS bankrupt as a result of boomers retiring. Pessimistic projections just make it happen a few year sooner.
Under the nrst, the idea of SS privatization will be infinitely more popular as a pol running for election says "Listen, I can lower your rate from 23 to 15% by privatizing SS". That should be obvious.
But the FairTax promises to fully fund SS into infinity, doesn't it?
Under the nrst, the idea of SS privatization will be infinitely more popular as a pol running for election says "Listen, I can lower your rate from 23 to 15% by privatizing SS". That should be obvious.
And his opponent can quote the president's tax panel
The Prebate-type program would cost approximately $600 billion in 2006 alone. This amount is equivalent to 23 percent of projected total federal government spending and 42 percent of projected total federal entitlement program spending, exceeding the size of Social Security, Medicare, and Medicaid.
Some might think its hypocritical to support the privatization of one entitlement program while supporting the creation of another, and much larger entitlement program.
But the basic problem with Social Security that FairTaxers persist in overlooking is that the program is self funding. Those that pay into the system through payroll taxes are those (and their families) able to collect from the system. If everyone pays into the system through the sales tax, it will be perceived as unfair that everyone can't also collect (making the "FairTax" a misnomer). It is possible that the result will be to speed up the process of privatization, but it is also probable that SS will be expanded to include every legal resident of the US. Why not? We all buy stuff and pay the tax. The prebate has made us all dependant on, and psychologically entitled to a monthly check from government. Its not such a big step from a monthly prebate to the expectation of SS coverage.
FairTaxers really need to get their goals in focus.