[HawaiianGecko]

 

	Here's a reason to NOT support a National Sales Tax. Let's say you are someone who made your money already and retired early.  Example: you made $5 million, paid your 39.6% and are living off of your remaining $3 million.  Every dollar you spend will be taxed AGAIN, and at 23% for a total of your money being taxed at a rate of 63% and that's only federal dollars.  Add to it the 12.4% FICA & 2.9% Medicare and the 7% or whatever your state requires you to tithe  A national sales tax will NOT benefit wealthy people in any way shape or form.

 

[Rakkasan1]

this assumes I buy everything new(especially big ticket items-cars,boats,bikes) from a store rather than private owner.That's not what I do.
What about taxes on dividends and such?

[kevkrom]

Here's a reason to NOT support a National Sales Tax. Let's say you are someone who made your money already and retired early. Example: you made $5 million, paid your 39.6% and are living off of your remaining $3 million. Every dollar you spend will be taxed AGAIN, and at 23% for a total of your money being taxed at a rate of 63% and that's only federal dollars. Add to it the 12.4% FICA & 2.9% Medicare and the 7% or whatever your state requires you to tithe A national sales tax will NOT benefit wealthy people in any way shape or form.

All that money is being indirectly taxed under the current system through artifically inflated prices for goods and services.

[TChris]

A national sales tax will NOT benefit wealthy people in any way shape or form.

Who said the goal was to benefit "wealthy people?" I agree that there are some implementation details that will need to be addressed, such as those who have already paid taxes on their money, but the principle of a NRST is sound, IMO.

[Rakkasan1]

"A national sales tax will NOT benefit wealthy people in any way shape or form."

this isn't supposed to be the basis for tax law anyway.(to benefit the rich or the poor)
It should be neutral and fair, hence the name.

[xrp]

You already pay that 23% in reimbursing corporations and business for their tax burden.

[Zon]

A national sales tax will NOT benefit wealthy people in any way shape or form.

You may want to do some research before you.... well, as Mark Twain once said: "It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt."

Or, if you choose not to put forth the effort to research at least have the sense to ask questions.

1. Under the income tax products and services have embedded taxes that raise the consumer cost by 20 to 25%. Thus, money that has already taxed is taxed again at the cash register to the tune of about 22%. Those embedded costs are eliminated with the NRST. So it's essentially a wash -- the cost at the register will be the same.
2. Under the NRST, only new retail goods are taxed. Used items will not be taxed.
3. Now for the biggie: the wealthy are just as venerable, perhaps more venerable than the non-wealthy to an IRS that can confiscate a person's wealth with impunity and ruin their life in the process. RS Abuse Reports -- The Case Against the IRS

[lodwick]

Most excellent point. Thanks.

[WhatHappenedtoAmerica]

Even with that scenario we should support a national sales tax. For one, it will make for a better future. Also, any of that money you've saved will now accrue income (interest or capital gains) tax free. It's still a good deal.

[phil_will1]

"A national sales tax will NOT benefit wealthy people in any way shape or form."

Interesting perspective, especially since democrats are attacking the FairTax because it is regressive and would be a way of shifting the tax burden away from wealthy individuals onto the middle class.

Here's the straight scoop. To the extent that wealthy individuals chose to purchase US produced goods, they would pay about what they would have under the old system for their consumption. To the extent that they chose to buy imports, they would pay a premium. In return, they no longer pay tax on any income, including capital gains, and no estate and gift taxes.

Primarily because of the price shifts which would make US producers so much more competitive on the world market (including our own), as well as the $5 - 6 trillion that would be free to move back into this country from overseas, the US economy would soar. A couple of nationally known money managers have predicted that the DJI would double with 24 months of passing the FairTax.

Here's a question for you: if the DJI doubles within 24 months of passing the FairTax, who would benefit more from that development - wealthy individuals or those living on welfare?

Care to retract your post now?

[Nightshift]

Good point here. Maybe they could excempt those over 65 and the handicapped, Etc.

there is a lot to discuss to make this happen, but does sound good in theroy though.