This proposed “fair” tax would cause cheating and off-shoring on a scale that we have never before seen. It would be a total unmitigated disaster.
“You’re just a Fair-Tax Bigot.”
OK, please explain why I am wrong. Why take your vacation, or build your vacation home in California, when you can instead go to nearby Mexico or Canada and avoid a 38% tax? Remember when a luxury tax was put on yacht building? The rich simply built their yachts overseas until the tax was repealed. Under the “fair tax” it would be like that, only 100 times worse!
The fair-tax proponents are very sincere, but they are also responsible for their inability or unwillingness to foresee the obvious. The rest of us, not being lemmings, do not wish to march off the fiscal cliff with the fair-taxers.
It's not that anything you say is untrue per-se, its just the manner in which you tell the truth that makes you an Anti-Fair-Tax Bigot.
You shouldn't be so dogmatic. Just because you're telling the truth doesn't mean you aren't a bigot. A lot of people have serious religious beliefs attached to this Fair Tax religion and pointing out the flaws in this system hurts their feelings and offends their religious convictions.
For many this Fair Tax is a sacrament or a sacred thing close to their hearts.
So quit being such an Anti-Fair-Tax Bigot. Go spread your vile hateful bigotry on another forum.
Hey, this strategy works on Romney Threads.
OK, please explain why I am wrong. Why take your vacation, or build your vacation home in California, when you can instead go to nearby Mexico or Canada and avoid a 38% tax?Sure - glad to. First of all it isn't a 38% tax. In fact it's a lot less than the 23% tax inclusive marginal rate in the FairTax bill. If you figure out your probable FairTax effective tax rate (the rate you'll actually pay under the bill) it will be much less than 20% and quite possibly less than 15%. Keep in mind the earlier list I gave of the many things that are not taxed under the FairTax.
And, if you go to those neighboring countries don't forget that under the income tax you've already pain a hefty chunk in income tax to Uncle - almost undoubtedly even at a higher effective tax rate than would you under the FairTax. The same goes for the money taxed under the present system that you would have used to buy a house there.
Under the FairTax you wouldn't have the expense of traveling or moving to the other country but only the lowered effective tax rate for any qualifying similar consumption. Most likely the travel/lodging/living costs in the other country would be more than the FairTax on the same items here (which would be cheaper here since the dollar is down against almost all currencies - making things "more expensive" there). Also if you wish to stay there permanently you'd most likely need to get a job there (and pay the taxes there).
Net gain??? I suspect not!!