Posted on 01/20/2008 6:29:07 AM PST by Man50D
During an election season, one of the first losers is the truth. The current misinformation campaign against the FairTax has been particularly virulent. Last month the FairTax was being panned by some columnists as a "crackpot scheme," even though it could be collected exactly the same way as its close cousin, the value-added tax, which is the most successful tax in the world. This month the FairTax is being vilified by various columnists as a tax increase for the middle class, even though it would provide a substantial tax cut for two-parent middle class families. Specifically, in a recent column, George Will asked, "Do you want a president (Mike Huckabee, proponent of a national sales tax of at least 30 percent) pledged to radically increase the proportion of federal taxes paid by the middle class?" Similarly, Time magazine's business and economics columnist Justin Fox wrote a blog piece entitled, "The FairTax and its big break for the $200,000-plus crowd."
The FairTax is a national sales tax that would replace the income taxes, the payroll taxes, and the gift and inheritance taxes. It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption. To help you pay the tax, you would get a prebate check or a debit card credit at the beginning of each month equivalent to the amount you would pay when buying necessities. In 2007, that amount would have been based upon $10,210 spending per adult and $3,480 spending per child.
(Excerpt) Read more at worldnetdaily.com ...
Regardless of the system used 30% is an abomination! Just think THIRTY PERCENT! Almost one third of every dollar in your pocket. And then you still have the city, county and state taxes. Ugh!
I like: The Fair Tax - A fairer way to take half your income.
I just love the professional tax people who show up here to defend the indefensible.
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These people are only a little less dangerous than the government school teachers who defend the indefensible.
Does anyone know how much it costs to collect and manage the federal income tax? How many cents per dollar does it cost for the businessman, the government, and the individual?
Honestly,,,there are armies of people both in government and the private sector who do nothing but collect, organize, and manage income taxes!
What would the cost per dollar of collect tax would a Fair Tax cost?
One of the reasons the Income Tax has been used is the average person never sees all the money they earn. Uncle takes his large slice before they ever see it. We tend to forget how much has been stolen.
I believe there will be major trouble when the average person has to pay 30% tax on every purchase.
I would be a lot happier if I could choose where my tax money would be spent. I know of a lot of government spending that would never see a red cent from me.
Don't be so harsh! It's the government's way of helping us to pay the Fair Tax -- a tax which would admittedly be lower if they didn't help.
But you haven't finished your explanation to the Average Joe. His "effective" rate is less than 23% because of the prebate, an amount that will vary from household to household, sufficient to offset the Fair Tax paid by the poor -- but everyone gets it. Even Donald Trump and Rush Limbaugh will get a check every month!
(If the Average Joe was smart he'd wonder why "the poor" need this prebate when "the poor" are paying 20-25% in hidden taxes today and are not getting a check to offset those taxes.)
I can't believe that you said that! The basic plan of the Fair Tax is one of the simplest-to-understand ideas I have ever run across.
Anyhow -- if you think it's complicated, try reading the present tax code -- even the damned IRS can't get it straight.
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For me the first thing to go would be the Marxist government indoctrination camps ( mis-named “schools”), both K-12 and college and universtiy.
Fair Tax - a perfect example of the use of the word oxymoron.
Paying an additional 30% tax on savings that I already paid taxes on really has me excited about this fantasy.
And who the redistribution of tax burden will fall on to fund that redistribution of wealth.
Don't forget:
It will cause instant inflation of 30%.
It is communist.
It doesn't shrink the size of government. (Dude, we know.)
It will never be passed.
Enforcement will be an even bigger nightmare.
I can’t figure out why so many people are so absolutely terrified by this idea. It’s really pretty simple.
• Either you pay 23% out of your paycheck before you ever see it.
-or-
• You selectively pay 23% through your own choosing (opting not to in buying used, saving, investing, etc.)
And the prebate isn’t anymore “welfare” than your annual tax return check or these moronic “stimulus package” rebates we’re about to collect.
It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption.This is the main problem with the Fair Tax--the ability to explain it and sell it to the Average Joe. The Fair Tax "user interface" is a debacle.
LOL! No free man pays 30% in taxes.
Put the government back in its Constitutional bounds, get off the bloody teat and save a bundle, however it is collected.
Of course, that means that the private sector would have to do a lot they have sloughed onto the government, but that would be done cheaper and more efficiently than the government would anyway.
Stop that! Just because Fair Taxer talking points contradict themselves doesn't mean you're allowed to point it out.
Paying an additional 30% tax on savings that I already paid taxes on really has me excited about this fantasy.
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I am retired. I see it as an advantage since my husband and I already have a home and everything in it. Other than cars we have no major expenses.
And,,,under the current system we are paying taxes on savings interest, capital gains, and dividends. Under the Fair Tax system this would not be taxed, and using the rules of compound interest, this would grow at a faster rate. ( My husband and I budget to live on less than this interest.)Also, under the Fair Tax we would also receive a rebate on taxes to cover taxes on basic expenses.
So...I see the Fair Tax as a major improvement.
By the way,,,do you make a living directly or indirectly from the current income tax system? Just curious.
I agree. I want this year's money used to send a cruise missile down a certain well in Qom, Iran.
Your life saving are simply acceptable collateral damage on the path to monthly federal stipends for everyone. Surely you wouldn't want to stand in the way of the coming utopia?
Successful? What makes a tax successful?
I therefore respectfully disagree and suggest a FlatTax for your consideration.
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