[LeGrande]

It seems to me that the fair tax has to raise as much or more money than the current income tax system does. So the question is, who will benefit and who will get slammed?

Right now I pay a 15% tax on my investment profits but under the Fair Tax plan I will pay 30% up front for the security and then hope for a 10% gain each year. So for an average investment it will take me 4 to 5 years to break even, if the stock does well? That sounds like a prescription for disaster. All new investing will immediately cease and the Great Depression will look like a time of great prosperity by comparison.

[Nathan Zachary]

"So the question is, who will benefit and who will get slammed?"

Depends on how much you spend vs how much you DON'T spend. Why would you have to pay anything on investment profits? You pay only when you spend them.

[maine-iac7]

It seems to me that the fair tax has to raise as much or more money than the current income tax system does

the FAIR TAX proposal didn't just fall from the sky = it's been in the works for years.

The studies show that there will actually be MORE money going to Washington, what with the illegals, drug monies, (who wont get a offset prebate and WILL pay taxes, finally, on every dime they spend.

The studies and calculations have been done. When in doubt, read up on a thing rather than just assume.

[Neidermeyer]

All new investing will immediately cease and the Great Depression will look like a time of great prosperity by comparison.
************************
You will not pay a sales tax on stocks or bonds (you will however pay 23% on that new BMW M3 you buy with the profits),, with a 0% corporate sales tax rate all the companies that went offshore with a HQ in the Caymans and such will come back to the US, with workers receiving their FULL paycheck and with the freedom from tax bookkeeping I expect huge and prolonged increases in GDP growth; furthermore to compete with the US it is very likely that other nations will adopt the same or similar plans ... a rising tide lifts all ships.

[Turbopilot]

What kind of “securities” are you buying that are considered new end-user goods and services? Stocks, bonds, etc. wouldn’t be taxed under the FairTax, and neither would capital gains from their appreciation.

[Man50D]

It seems to me that the fair tax has to raise as much or more money than the current income tax system does.

You are correct! The Fair Tax rate is set to be revenue neutral.

So the question is, who will benefit and who will get slammed?

I don't know where you personally draw the line between benefiting and "getting slammed" but by taxing consumption people will have more power in determining how much they pay in taxes. The more they spend, the more they are taxed. Inherently people with more income tend to spend more. Consequently taxes collected will increase as income increases. Also as a result higher incomes will have a higher effective tax rate (after the prebate) but not exceeding 23%.

[Turret Gunner A20]

RE: 2@

WRONG!!!

Please go to ....

www.fairtax.org/site/PageServer?pagename=about_faq

... and read the questions and answers carefullY -- WITH AN OPEN MIND.