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To: MadPenguin
So, for it to be revenue neutral, one of two things must happen. 1) We all end up paying the same proportion of our earnings in taxes, which means no advantage and no reason to change to a different systems; or 2) the tax burden is shifted from one group to another. If the highest earners and already paying an unfair amount of the taxes, is the new system making that situation worse? If not, then those of us lower in the income chain will end up paying more.

It will be revenue neutral without increasing the tax burden. The tax will be spread out over many more people. There are more than 300 million consumers who will pay a tax when they make a purchase compared to only 140 million income tax filers. The effective rate(after the prebate) will lower the tax rate to less than the maximum of 23%.

The tax burden on an individual will be dependent on the person's spending habits since the tax will be applied to spending. People spend more as their income increases. Consequently higher income people will bare a higher tax burden because they spend more. Most importantly The Fair Tax gives everyone the freedom to choose how often and how much much they will be taxed. The income tax takes away that freedom by taking our money before we see our paychecks.
41 posted on 01/23/2008 4:28:59 AM PST by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

Not to mention that illegal aliens will pay more tax than they do today. They won’t be able to fly under the radar.


75 posted on 01/23/2008 5:09:03 AM PST by ReignOfError
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To: Man50D

None of this will even be an issue once Huckabee is booted out of the race.

Praying for that day!


343 posted on 01/23/2008 12:15:38 PM PST by proudtobeanamerican1 (Media -)
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