For every dollar you have in retirement savings, the IRS takes 0%. FT will be great for parasites looking forward to the monthly FT entitlement check and it will punish people who have saved their whole lives.
Won’t you have to report your retirement savings as income, when you start using it?
So would you rather pay 23% in hidden taxes (as you are today)or 23% in embedded taxes (as you will with the FT)? Either way the people who have already paid taxes are still paying the same amount for an item. The only difference is how many and what you choose to buy in order to fund the federal government.
Wrong! If my retirement is in a 401(k) or IRA, the IRS takes 15, 25, maybe 35% when I withdraw it. And since we seem to be arguing about which base to use, if they take 35% of my total account balance, they have taken 54% of what I have left. If my retirement nest egg is in stock, the IRS takes capital gains of maybe 15%. (or 18% of what I have left) If my retirement fund is in cash in a passbook account, you may have a point. Then we would have to rely on some price reduction due to elimination of the embedded tax in the price of a product to come out even.
I have heard a lot about problems to be dealt with with the FairTax, and I agree there are some. I have not heard of one dis-qualifier.