[tyke]

It won’t happen for one simple reason. People will not accept a 30% sales tax (which is what it really is) instead of the mostly single digit sales tax we have today.

“Fair Tax” proponents use 23% arguing that’s how income tax is calculated today, but when people realize that 30 cents will be tacked on to every dollar they spend (i.e. it’s really 30%), the research shows that they will balk at the idea.

It’s a non-starter.

[xcamel]

Extra points added for being a rational, thinking person. Bravo.

[lightman]

My friends in Canukistan absolutely loate their single digit GST (National Sales Tax) because it applies to such things as funeral services, new home construction, legal services...you name it. Much farther reaching than just day to day consumer goods.

[mazda77]

Read the books, do the math (not fuzzy) and then figure out an honest reason to whine. Until then your complaints go beyond nothing but deaf ears. I suppose if Boortz were to write a tutorial workbook you might be able to follow the numbers.

[GeorgiaDawg32]

my understanding is the tax will be INCLUDED in every dollar, not tacked on..where did you learn this?? (I wanna know so I can do some research on it)..

[K-oneTexas]

... People will not accept a 30% sales tax ..."

What I don't hear people saying or realizing is that with an income tax you have that %age taken out of your income before you see it.

Lets look at 2008 rates:

Medicare is 1.45% (up to $102,000)

Social Security is 6.25% (up to $102,000)

Income tax (under current statute, personal income tax, not corporate or capital gains taxes)

the Federal tax brackets for a single (unmarried) person are:^[1]

• 10%: from $0 to $7,825
• 15%: from $7,826 to $31,850
• 25%: from $31,851 to $77,100
• 28%: from $77,101 to $160,850
• 33%: from $160,851 to $349,700
• 35%: $349,701 and above

So lets say your income is $50,000 the percentage taken out before you see it is:

Medicare     1.45%

S.S.               6.25%

Income         25.00%

Total Rate    32.70%

If you are self-employed you must add in your portion of the S.S. wich is 6.25%. If employed the employer pays this 6.25% (which could be a factor in lower pay scales for working). Then the total is 38.95%

If you make more you get more taken out - a higher percentage.

If you make less,  10% + 1.45% + 6.25% = 17.70%

We could go on and would still have debate. Some people will be happy at 30% cause it is less than what they have taken out now. Other would have more and be unhappy. Then you look at the prebate, etc.

I would rather chose when the government gets my tax dollars ... instead of them chosing.

IMHO, you can't make a flat statement that "people will not accept it", cause some will be happy.

Also, the 23% vs. the 30% is necessary to use if you are comparing anything you must compare likes and speak in like terms.  Apples to apples, not apples to oranges So, compare  Income tax to income tax, not Income tax to Sales tax. Would you actually compare something like, spending time with your wife or lover to going down to Auto Zone and buying oil?

 

[Man50D]

It won’t happen for one simple reason. People will not accept a 30% sales tax (which is what it really is) instead of the mostly single digit sales tax we have today.

Sales Taxes are far from single digits. Most people fall into the 15% income bracket. Wage earners also pay 7.65 percent in payroll taxes. Then there's the 7.65% employer matching. Fair Tax FAQ#5. Add in the hidden corporate income taxes and associated compliance costs embedded in the cost of all goods and services and the total tax is in excess of 30%.


“Fair Tax” proponents use 23% arguing that’s how income tax is calculated today, but when people realize that 30 cents will be tacked on to every dollar they spend (i.e. it’s really 30%), the research shows that they will balk at the idea.

Twenty two million dollars worth of research determined 23% is the tax rate necessary to cover what is costs to fund the government at the same level we have today. The 30% exclusive tax rate with The Fair Tax you refer to is merely the 23% inclusive tax rate under the income tax extracted from today's prices. The result will be the same dollar amount collected from the embedded corporate income taxes and compliance costs and is far less than the total embedded taxes we pay today.

[Antonello]

“Fair Tax” proponents use 23% arguing that’s how income tax is calculated today, but when people realize that 30 cents will be tacked on to every dollar they spend (i.e. it’s really 30%), the research shows that they will balk at the idea.

You might want to check your math:
$1.00 + .30 = $1.30
23% of $1.30 = .30
30% of $1.30 = .39

In other words, for ever dollar spent, an additional 30 cents would be charged. That's 23%, not 30%.

There are many solid arguments against fairtax. Thinking the tax rate is higher than advertised when it is you that messed up the math isn't one of them.

[littlehouse36]

“It’s a non-starter.”

Even at 23%, I will barter and hoard.

[Turret Gunner A20]

It won’t happen for one simple reason. People will not accept a 30% sales tax (which is what it really is)....

No, it isn't.

... instead of the mostly single digit sales tax we have today.

The Fair TAX IS NOT, nor is it claimed to be, " instead of the mostly single digit sales tax we have today."

“Fair Tax” proponents use 23% arguing that’s how income tax is calculated today ....

That is not even close to the truth.

...but when people realize that 30 cents will be tacked on to every dollar they spend (i.e. it’s really 30%), the research shows that they will balk at the idea.

If they don't know anymore about what is going on now versus wht the FAir Tax wil be than you do, they sure will balk at it. But if they find out the truth about it all, they will prefer it to the unmanageable thievery that is going on now with the Income Tax setup.

[elpadre]

we cannot and must not continue with the present system of taxation. This is a good start. Accept it and if it has some problem spots, fix them and get on with it.

Intersetingly enough, I understand the few countries which have adopted the Fair Tax are well pleased.

[gitmo]

People will not accept a 30% sales tax (which is what it really is) instead of the mostly single digit sales tax we have today.

That's a good thing. We're paying it now. There will be more public awareness of exactly the toll this runaway government is placing on its citizens.