Also, claims that things will cost less than before are bogus - the profit mentallity, the same which allows petroleum companies to get 600% profit because we can't do anything about it, will find a way to maximize access to consumer pockets, no matter WHAT tax scheme does or does not exist.
I used to think a flat income tax might be the answer, with a lot more input from STATES to limit federal government spending to ONLY CONSTITUTIONAL functions, e.g., the military to protect the country as a whole, et.al. (welfare of the union stuff). Now I'm not so sure, but it WOULD mean less out of my pocket than the current system AND, as far as I can tell, the NRST system, too!
The biggest help would be to do away with the federal reserve bank, which has nothing to do with "federal", but there are too many rich scumbags (a la the trilateral commission) who wouldn't let that happen. Things might be different if tax money (from whatever source) went directly into the US treasury vaults, instead!
At this point, I really don't have a solution, but sure as hades, I don't want to change one lousy system for another which will cost me even more of MY money!
Necessities are not taxed. Neither poor people nor rich people will pay for their necessities of life, as it should be IMHO.
You are aware of this, so why do you say it would "gouge" poor folks with no discretionary income? Those with no discretionary income would pay no tax.
Under the FairTax plan, no American will pay taxes on necessities. Every household will receive a rebate that is equal to the FairTax paid on essential goods and services, and wage earners will keep 100% of their paycheck. and there will be no payroll tax either.
So how would it be bad for poorer folks?
For those that earn more, the maxium rate ever paid would be less than 23% (compared to income tax rates) due to the untaxing of necessities. It is surely possible that you pay less than that.
I am going to end up paying about the same - but I would like to eliminate the income tax for the reasons mentioned above, among others: lower prices of US exports, higher prices for imports, and most importantly by far is that capital would flow to the US like crazy.
The flat income tax is infinitely better than the graduated income tax imho, and the nrst is infinitely better than the flat income tax imho. The capital flow to the US would occur with a flat tax, but only slight. The nrst would open the floodgates for folks to keep their money here...hence our jobs are safer.