Posted on 02/25/2008 12:51:24 PM PST by Man50D
SUPPOSE A presidential candidate proposed taxing wealth and using the proceeds to reduce taxes on workers and provide a rebate large enough to cover taxes paid by poor workers. Such a candidate would be hailed by the left and reviled by the right.
Thus, it's remarkable that so many Democrats, with the exception of presidential candidate Mike Gravel, oppose the FairTax and so many Republicans, particularly presidential candidate Mike Huckabee, support it. In fact, the FairTax, which replaces all federal taxes with a federal retail sales tax and provides a rebate, represents a way to tax wealth, reduce taxes on wages, and disproportionately redistribute money to the poor.
A sales tax effectively taxes wealth?
It does. When we buy goods and services in a sales tax world, part of the payment goes to sales taxes. So we end up with fewer real goods and services.
Take Mr. Megabucks, who is sitting on $65 million and wants to buy a jet like Oprah Winfrey's - a 10-passenger, $50 million Global Express XRS. Under the FairTax, the jet costs him an extra $15 million because of the 30 percent sales tax. Mr. Megabucks gets the jet, but the extra $15 million, which he had budgeted for Beluga caviar, Dom Pérignon, and other flight snacks, goes to Uncle Sam.
(Excerpt) Read more at boston.com ...
Amen. You said it all right there good sir.
Though I will add that the Democrats will oppose ANY tax change (VAT, Flat, etc.) that takes power away from the Federal Government.
Mr. Megabucks is going to buy his jet offshore and put it in an offshore holding company just like many people presently do to avoid the mere sales tax of some states. All very legal and nice and proper.
The author has no clue about real world business.
No, our economy needs a simple, transparent, EQUAL-RATE tax system. One that doesn't punish the earners and reward the deadbeats. Unfortunately, the fair tax as it's presented does not achieve this goal.
The mere fact that it is called the “Fair Tax” is reason enough for the Dems to oppose it. Call it the “Unfair Tax” and they will support it.
SEE ALSO:
fairy tale
Function:
noun
Date:
1749
1 a: a story (as for children) involving fantastic forces and beings (as fairies, wizards, and goblins) —called also fairy story b: a story in which improbable events lead to a happy ending2: a made-up story usually designed to mislead
The problem is not the tax system - it is the corpulent, corrupt government it feeds.
Changing the tax system is nothing more than a three-card Monte game unless you fix the underlying problem. Does anyone really think the government will take in less taxes with a different system?
I believe the fair taxers already admitted the alleged embedded taxes are only 7% AT BEST.
It really does not take into account the fact of offshore competition presently has a better corporate tax rate offshore. Being taxed differently but the same amount is pointless. We need to be taxed LESS.
You are patently WRONG on this point!
Under the FairTax, unlike the income tax, everyone would be able to save and invest with previously untaxed dollars. They would be able to gather in the profits from those investments without having to first consider the tax consequences as well.
For the first time in the lives of anyone living in the USA today we would be truly FREE!
but thanks to the fair tax scam’s rules (as written in HR 25 at http://www.thomas.gov ) if she does not go to the expense of producing an itemized reciept she will be a criminal. Of course according to the same section the CUSTOMER is also a criminal for not obtaining the reciept.
To reach the, yes, mythical 23% inclusive ‘Fair Tax’ rate, the average small business, which operates on a keystone profit scheme, would have to pay well over 18% of it’s gross sales in taxes. That means a small business that does $400,000 in sales would have to have to pay $72,000 in taxes on $200,000 gross profit.
It is a myth, even the people who originally implied that prices would remain the same after the imposition of FairTax have backed away from it.
Is there a percentage of a sale that could be tracked back to taxes? Yes. Is it significant? No more than the percentage charged by credit card companies to the business.
Oh really!
Would you mind telling us, with specificity, just how that would work?
>> Under the FairTax, unlike the income tax, everyone would be able to save and invest with previously untaxed dollars.
You’re being disingenuous.
I said it would screw retirees, as well as those who save so they can spend later.
How?
Well, these poor folks were TAXED (highly!) when they EARNED the money.
And, they will be TAXED AGAIN at CONFISCATORY (30%) rates when they SPEND their hard-earned, and highly-taxed, money.
Tell me, how is that FAIR?
I’m afraid it is you who is patently wrong on this issue.
“...the Flat Tax has a long and successful history in a whole slew of countries.”
Which flat tax proposal do you support?
BTW, I support the FairTax over the flat tax because it addresses the broad range of economic challenges that this country faces far more effectively and comprehensively than the flat tax (or any other proposal).
1. the declining savings rate which is in negative territory
2. the massive trade deficit
3. the spiral of complexity and higher compliance costs
4. the SS and Medicare crisis
5. the federal budget deficit
Free from what? oldIRS vs NEW-IRS?
Free from book keeping? not according to HR25 which has the draconian registration and reporting requiremetns.
Free from lobbyists? not accordign to the K street lobbyists who will be marching to the Hill for all sorts of exemptions and from lobbyists.
Free from politics? not on you life as democrta demand a “living rebate check”.
Free from entitlement programs? not from the prebate/rebate entitlement program that dwarfs the wealfare and social security systsms. Especially around each election cycle. It will very well be the monthly living expense as social security has become from the socialist con job of FDR as a mere supplement for seniors.
The only Free will be trading the chains of the IRS slavery to the NewIRS slavery with new and improved draconian intrusivness and that fresh entitlement program scent.
As you have been told many many times already it isn’t just the taxes alone that get passed along but ALL the costs associated with those taxes as well. Every set of hands that touch the production of anything in this country today incurs those costs and they ALL wind up in the prices of goods and services sold at retail.
>> It taxed 1% of a person’s earnings on the first $20,000 and 7% above $500,000 when enacted in 1913. It was essentially a flat tax since so few people earned more than $20,000 and covered only .5% of the population
Huh? That isn’t “essentially” a flat tax. It “is” what it mathematically is! A PROGRESSIVE INCOME TAX.
Are you “fair tax” advocates addicted to dissembling? Must you shade the truth with every single point you try to make?
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