Fair-taxers should get it into their heads that this is never going to happen. As easy as it sounds it is ridiculous to consider that the government will be ‘prebating’ a check to everybody in the country in order to allow for a VAT or point of sale tax. It is much more likely that a flatter and fairer tax with limited deductions would be easier and much more efficient too not only sell to the American people but to enact.
A good example of a fairer flatter tax would be close to what the Republicans are pushing for now, a voluntary two tier tax. 10% on all income up to $100,000 and a 25% tax on all income above $100,000. This coupled with generous personal deductions of around $12,500 per family member linked to inflating would allow a family of 4 who gross $100K pay 10% taxes on $50,000 after personal deductions.
This plus a massive overhaul; of government workforce, including the privatization, an outright elimination of large swaths of the federal government would solve many of the problems
You wrote: “Fair-taxers should get it into their heads that this is never going to happen. As easy as it sounds it is ridiculous to consider that the government will be prebating a check to everybody in the country in order to allow for a VAT or point of sale tax. It is much more likely that a flatter and fairer tax with limited deductions would be easier and much more efficient too not only sell to the American people but to enact.
A good example of a fairer flatter tax would be close to what the Republicans are pushing for now, a voluntary two tier tax. 10% on all income up to $100,000 and a 25% tax on all income above $100,000. This coupled with generous personal deductions of around $12,500 per family member linked to inflating would allow a family of 4 who gross $100K pay 10% taxes on $50,000 after personal deductions.
This plus a massive overhaul; of government workforce, including the privatization, an outright elimination of large swaths of the federal government would solve many of the problems”
With the FairTax there would be no income taxes withheld from anyones salary, and no Socialist Security or Medicare taxes withheld from anyones salary. There would be no income tax returns for anyone or any company. The 23% would not be added to the retail price at the store, it would be imbedded in the price. Currently, businesses pass along their income taxes to consumers, so those taxes are imbedded in everything we buy.This tax would be collected at the state government level and passed along to the federal government. There would be no sales taxes on any used goods. People could control the amount of taxes they pay based on their spending, or consumption. The Fair Tax is simple, unlike the current federal income tax system, which is so complex that Americans spend at least $250 billion a year just to comply with it - hiring accountants, lawyers, etc.
The prebate is calculated to compensate for those who fall below the poverty line, so they would not be burdened with the retail sales tax up to a certain level of spending. The Fair Tax takes away the ability of Congress to use the federal income tax system as a way to control our lives. It kills lobbyists and loopholes. It is transparent, so any increase in the retail tax rate would be immediately obvious to all consumers. The Fair Tax would encourage savings and investment, versus spending, thereby providing the capital needed for economic growth. Foreigners visiting the U.S. would pay the tax, and so would the millions of illegal aliens and other crooks who evade paying federal income taxes. Capital would flow to the U.S. as a result of their being no income taxes here. It would give us a worldwide competitive advantage.
Go to www.fairtax.org for more detailed information, and to sign up and support it. There are bills pending in both the House and the Senate, so write to your congressmorons and tell them to support the Fair Tax, or you wont vote for them in the next election.