PING
Fair Tax?
I have a better idea. Put the Constitutional provision, tariffs, on every good and service entering the country. Not only will we pay NO taxes, we'll all have decent jobs when the factories and investment capital come running back home. Talk about a win-win.
But I'm self employed...
FairTax PING
I've come around on this issue over the past several years. As a self-employed artist, it hurts me like hell to wait and wait for a client to pay, and then have to deduct 25% of that hard-earned, much-needed cash right off the top to feed into Uncle's gaping maw. In effect, for every four hours I work I only get paid for three. If there were no income tax, every hour I worked would be an hour I got paid for. That fact alone makes the HR25 an attractive proposition. When you deduct the costs of tax prep, bookkeeping, and records maintenance (and why do I have to pay to keep the IRS's records for them, anyway?), it sounds even better.
I will be very surprised if HR25 goes anywhere anytime soon, but I'm beginning to hope that it or something like it will eventually pass. Never mind the financial relief — the relief I feel from no longer having the IRS hold a loaded gun to my temple would be worth it.
AWESOME!!! Thats a plan!
WRONG! It would be right if it was a real 23% sales tax and not a tax "23% of the gross payment"
The groceries would cost $45.58...$0.58 MORE than before not including the new tax on taxes in "the gross payment".
$45.58 (gross payment)
Minus 23% ($10.48 gross payment tax ) equals.
$35.10
The 23% "tax of the gross payment"(including itself) is a 29.87% (30%) sales tax.
Why not just lower the tax rate and let us keep more of our money to begin with?
23% is way too high for a blasted sales tax anyway.
Which will lead to the creation of co-ops by which people will collectively buy wholesale to skirt around the retail tax. This in turn will create tax shortfalls that will ultimately result in the return of the IRS while leaving the federal sales tax in place.
Think it won't happen? Think again.
One glaring flaw.
Even if the "embedded tax" goes away prices will not fall by the same amount.
Many will see this as an opportunity to increase their profit margin, fund capitol improvements, ramp up research that has been put off, etc.
Small business runs on a thin margin in this country, the lesser tax's may keep them afloat, but not really allow them to reduce prices drastically.
This looks to be incomplete, but a good start.
ping!
Sorry, no thanks. I don't want to pay $10 dollars for a gallon of milk or $7.50 for a loaf of bread.
The very best part of it will be neutering the IRS, no more "audits" i.e., government terrorism.
The Democrats aren't against this because they're concerned about the poor "getting hit with regressive taxes." They're against this because they know it would make everyone in the country consider themselves to be a taxpayer. And once you're a taxpayer, you're much less likely to support anything that would make your taxes go up. It would destroy the very mechanism by which the Democrats are able to scare so many poor people into voting for them.
Another lie, HR25 does NOT provide for the repeal of the 16th amendment... Was he saying something about lying and not knowing what's in the fairtax?
Could someone clarify this for me because I'm not sure I'm getting the premise right. We would pay 23% sales tax on goods? What about those of us in states, like NY who already pay a sales tax of 8.75%. What would be my sales tax on a $20,000 car be? 31.75%? Is this the suggested solution? It stinks paying 8.75%.
What happened to the flat tax? That's the way to go if we have to pay these damn taxes.
What gets me, is we were considered too rich to get the rebate for the child refund last year. They certainly don't consider the price it cost for people to live in individual states. There is no fairness in taxes. Flat tax, in my mind, is still the best way to go.
Do you really trust the crooks in DC to "phase out" the current income tax?
Besides, with state sales taxes of around 6-7%, add that to say 23%, and you have a huge incentive to do your business in the black market.
If you would like to be added to this ping list let me know.
John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org & http://www.salestax.org
What about Savings? I finally get to a point in my life where I'm putting money away. The fair tax comes in and it loses 30% of its value?
What about the effect on tourism(non native US)? If prices go up 30% how many people are going to stay home and not come to the USA?
I don't know how much foreign tourism affects our economy, but it must have some effect in tourist cities like Orlando, NYC, Vegas, etc.
Also, what about Tax avoidance? I bet the black market shoots up, specially near Border areas where you can slip over the border and buy Canadian or Mexican.