Good thing the Fair Tax doesn't tax used items or business to business transactions
So, we wipe out the auto industry forthright, as, knowing human nature, initially people will be buying used cars (which are currently in an enourmous glut) to save that 23%.
Also, is it just my "fair nature" that will keep me from purchasing groceries under my company visa card? If business to business isn't taxed, you can bet your ass I'm setting up a business while this is winding through the halls of confusion.
While we're at it, what about realestate? What sort of protection does anybody outside of California have from rate increases which might arise in a declining realestate market? If I buy a used house, is it not taxed?
My wife works for a crane company. Cranes are hideously expensive. 23% of a million dollar crane can go a long ways to rebuilding several half million dollar ones. Some of these cranes are imported, how do we get the Germans to collect the tax? If B to B isn't taxed in this scenario, why do I have to pick up the slack? You really think that (a) the manufacturer will pass all the saving on? You really think an individual will reap benefits from this hypothesized cost savings when it's worked its way through the tilt-up walls of the neighborhood grocer???
NRST is for suckers who think that they could trust the average politician as far as they could throw them. The NRST is only out there because the alternative is either flat tax, or the federal government goes back to the constitutional means of tax collection for themselves and gets the hell out of all the touchy feely crap that states should be doing and letting each other learn from the benefit of what would turn out by some to be their gross stupidity.
If states were responsible for all of the crap the Feds have taken upon themselves, you'd quickly see everyone move from the ones run by do gooder fools. As it is, we're trapped.
Even the concept of a 23% rate for an NRST is stupid, the Feds should maybe get 10%, if it were to cover their actual duties. All the other crap that creates legions of New Orleanites among the productive class should be left to states to either sink or swim upon...
Not hardly...basic economics shows that supply and demand along with fair competition dictate prices...More likely the price of used autos will go up, just as they have gone down now with "employee discounts for all"(lower new prices=lower used prices) Autos raw materials, labor and manufacturing costs will come down from the loss of hidden compliance and tax costs..the amount of that decline is subject to debate, but any difference between new and used will narrow.
Also, is it just my "fair nature" that will keep me from purchasing groceries under my company visa card? If business to business isn't taxed, you can bet your ass I'm setting up a business while this is winding through the halls of confusion.
Read the bill, you will need to get an exemption for your purchases, and will be subject to audit. if you buy groceries now with your business card you probably still will. The difference is millions of people in the underground economy will have to pay something under a NRST.
While we're at it, what about real estate? What sort of protection does anybody outside of California have from rate increases which might arise in a declining real estate market? If I buy a used house, is it not taxed?
What rate increases are you talking about?.Is a used house different from a used car?
My wife works for a crane company. Cranes are hideously expensive. 23% of a million dollar crane can go a long ways to rebuilding several half million dollar ones. Some of these cranes are imported, how do we get the Germans to collect the tax? If B to B isn't taxed in this scenario, why do I have to pick up the slack? You really think that (a) the manufacturer will pass all the saving on? You really think an individual will reap benefits from this hypothesized cost savings when it's worked its way through the tilt-up walls of the neighborhood grocer???
Imported products are taxed only when sold in the USA. USA products are currently taxed at all stages of production, but under a NRST will only be taxed if sold in the USA to non businesses, exports of USA products will be more competitive. If it is used in a business, it is not taxed, what slack are you picking up? It is being used to produce things not consume them, ie. Consumption Tax. Yes prices are set by supply and demand an if one tilt up grocer charges too much and makes a large profit, competition will come along and lower the prices until a reasonable profit is made based on risk, just like now.
NRST is for suckers who think that they could trust the average politician as far as they could throw them. The NRST is only out there because the alternative is either flat tax, or the federal government goes back to the constitutional means of tax collection for themselves and gets the hell out of all the touchy feely crap that states should be doing and letting each other learn from the benefit of what would turn out by some to be their gross stupidity.
Uh I am not a sucker and I resent the remark, especially since you don't seem to have a real tight grasp on the NRST before coming to such a conclusion.
If states were responsible for all of the crap the Feds have taken upon themselves, you'd quickly see everyone move from the ones run by do gooder fools. As it is, we're trapped.
Um so having a NRST that lets everyone know what they are paying instead of hiding it in withholding, SS etc is bad ? Seems to me the first thing we must do is get everyone to see exactly what they are paying for this doo gooder nonsense. At the same time we will be taking the power away from Congress and giving it back to ourselves....They tax us too much we quit spending and save our money. Right now our only option is to quit making as much money and that hurts us more than them.
Even the concept of a 23% rate for an NRST is stupid, the Feds should maybe get 10%, if it were to cover their actual duties. All the other crap that creates legions of New Orleanites among the productive class should be left to states to either sink or swim upon...
The concept of 23% is dictated by the fact that a change in the law needs to be revenue neutral. Its a start, once people see what the govt is costing us, they can put pressure to cut spending. I agree the feds are doing far more than they should in many cases, and National Defense should be their primary function.
Also, is it just my "fair nature" that will keep me from purchasing groceries under my company visa card? If business to business isn't taxed, you can bet your ass I'm setting up a business while this is winding through the halls of confusion.
You won't be in business too long if the purpose is to purchase and consume food. In addition eventually the Treasury Department will be knocking on your door for such a ridiculous scam.
While we're at it, what about realestate? What sort of protection does anybody outside of California have from rate increases which might arise in a declining realestate market? If I buy a used house, is it not taxed?
You do not take into account the FairTax will drop mortgage interest rates by about 25 percent (about 1.75 points) as bank overhead falls due to considerably less mandatory compliance. Also first-time buyers save for that down payment much faster, as savings are not taxed. The result will be much more affordable new housing.
My wife works for a crane company.23% of a million dollar crane can go a long ways to rebuilding several half million dollar ones. Some of these cranes are imported, how do we get the Germans to collect the tax? If B to B isn't taxed in this scenario, why do I have to pick up the slack? You really think that (a) the manufacturer will pass all the saving on? You really think an individual will reap benefits from this hypothesized cost savings when it's worked its way through the tilt-up walls of the neighborhood grocer???
Your wife works for a crane company and somehow this has to do with you "picking up the slack"? What slack are you referring to? Foreigners, including Germans, will have nothing to do with the Fair Tax just as they don't collect taxes for our current tax system. This portion of the paragraph makes absolutely no sense!! As for a manufacturers and grocers passing on the savings you forget one important factor called competition. They won't all charge the same price. Some will charge less and the others will be forced to follow or lose business.
You keep referring to the "Feds". ThePEOPLE are the federal government and not Congress. You're only trapped if you don't do anything to change the system. Such a defeatist attitude only feeds into the problem we have with our current tax system. It's sad to think you would rather pay any amount of tax to the very politicians you don't trust.