Actually, in principle I prefer consumption taxes, but that preference dissolves when the rate carries serious unintended consequences. You see, in addition to my 12% State income tax, and the 1/5% property tax I pay, I already pay a 9% sales tax, to which you propose to add another 30% (Fare taxers lie about the rate).
There is already a black market in cigarettes and alcohol because of a lower rate than the Fare Tax would assess, but instead of answering the argument with content you chose to portray my position falsely.
If the income tax went back to 1% (which was the original rate) would you really be bitching about it now?
The problem is spending.
The FairTax movement is the largest tax reform movement in Congress and in the nation today. There are no lies about the rate. In fact it is a lie to call those that support the FairTax liars. They are truth tellers and the kind of people that I like to have around.
The NRST rate is stated two ways on a receipt, inclusive and exclusive. Income tax rates are stated inclusively, hence the FairTax rate is often quoted inclusively for comparison purposes.
The difference between inclusive and exclusive is one of arithmetic in the denominator. Simply put, given 4 items, if I take away 1 from the four, then I have reduced the total by 25%. Then if given 3 items and I add 1 to this total of 3, I have increased the total by 33%. In the first calculation I use a denominator of 4 and this is the inclusive form. In the second example I use a denominator of 3, and this is the exclusive form.
Complaints about too many taxes are legitimate but the FairTax is not an additional tax, it is a 'replacement' tax to replace the federal income tax and it is applied only to retail products and services, never to business to business transactions nor to used item transactions.
There is already a black market in cigarettes and alcohol because of a lower rate than the Fare Tax would assess, but instead of answering the argument with content you chose to portray my position falsely.
What position? What argument? The IRS will be abolished and state tax collection agencies will collect the NRST, just as they did before the 16th Amendment. You seem to have a real misapplied animus towards the FairTax.
As for enforcement, the FairTax is orders of magnitude more efficient than the Income tax. First, it ***takes two*** people to cheat under the FairTax, a buyer and a seller. Whereas under the Income tax it ***takes only one*** person in secret to cheat. One can say absurdly that cheating under the FairTax will be less efficient.
Second, more than 70% of all retail transactions are carried out by about 3000 corporate chains. And these corporate chains are electronic. It is then so much easier for state tax enforcers to audit an enormous block of retail transactions than it is to audit the books under the income tax code.
"If the income tax went back to 1% (which was the original rate) would you really be bitching about it now?"
I don't need to be the target of your foul mouth.
There have been several flat income taxes in US history beginning with the 1% in 1861 under Lincoln. Income tax proponents always start with the innocent 1% and claim that it will barely be noted in the general population. But history shows that a flat tax never stays flat.
"The problem is spending."
No, it is not 'the' problem, it is 'a' problem. And it is a totally separate problem that can only be helped by the FairTax because of the transparency of the FairTax.
Actually, yes, some of us would still be bitching as an income tax is a slave tax.
The problem is an Unconstitutional government. Your complaint about spending would be moot if they were confined to their LEGAL limits of A1S8.
Now, while I’m in favor of the Fair Tax (as it is the best solution I’ve seen that’s been laid out), there ARE still problems with the system. But the PROS highly outweigh the CONS.
- NO ‘reporting’ NO IRS or the like.
- Cost is laid out on each purchase.
- Cost reduction per competition. Prices will settle to ‘lowest’ as biz tries to grab market share.
- BUSINESS remits to the State, State to the Fed, NEVER the end-user.
- Only NEW consumption. Kills the 2x, 3x taxation
Even IF 30% is the tax, as long it’s noted on the receipt, and price pre = price post FAIR TAX, people will be more informed and adapt to notice/want change.
Personally, NO prebate. EVERYONE has skin in the game for their actions/consequences.