[Man50D]

1. Prebate is socialist

I suggest you read Karl Marx's Communist Manifesto. One plank is a heavy progressive tax on income. Communists support any tax on productivity as it will discourage people from working, making them depend on the government and thereby empower socialism. The prebate only covers taxes on necessities up to the cost of living. The amount will be far too small for a household to sustain itself on the prebate alone. At least one member in the household will still have to work just as they do currently.

2. pre-earned/saved money is re-taxed when plan is implemented

Savings will no longer be taxed under The Fair Tax as it is with the income tax since any tax on income will be eliminated. That will more than offset what has been taxed.

3. tax rate is way too high

Based on what data do you make such an otherwise vague and empty claim? The tax burden with the income tax is far greater than the what the rate will be for The Fair Tax. Most people fall into the 15% income tax bracket. Add in the 7.65% payroll tax along with the same rate for the employer matching. Then factor the nearly 23% embedded taxes in every thing we buy due corporate income taxes being passed onto the consumer at each stage of production and the current rate is over 53%! That will be replaced with the 23% consumption tax rate. I don't know about you but I'll take a 30% reduction any day!

[TheOldLady]

"2. pre-earned/saved money is re-taxed when plan is implemented"

"Savings will no longer be taxed under The Fair Tax as it is with the income tax since any tax on income will be eliminated. That will more than offset what has been taxed."

I think he means that when you have savings now, that money, and the interest on that money has been heavily taxed. So if the fair tax is implemented, and you spend any of your savings, it will be taxed again with the "fair tax." That's a really serious problem. You would lose a huge chunk of money that has already been taxed to the hilt.

[John D]

Savings will no longer be taxed under The Fair Tax as it is with the income tax since any tax on income will be eliminated.

True, but all I have already earned and saved has already been taxed. Now if the so called Fair Tax comes along, if I buy something later I will be taxed AGAIN, and at a very high rate.
Say I am saving for a motor home when I retire. I have been saving for a little over 4 years and have about 4 more to go. I have already been taxed on the money I earned and saved. Then the Fair tax comes around and I am taxed again at an absolutely ridiculously high rate.

[Filo]

I suggest you read Karl Marx's Communist Manifesto.

Why? Has it changed since the last time I read it?

The prebate only covers taxes on necessities up to the cost of living. The amount will be far too small for a household to sustain itself on the prebate alone. At least one member in the household will still have to work just as they do currently.

It is still taking money from the pool of successful people and giving it free to the pool of unsuccessful people.

That is socialism.

Savings will no longer be taxed under The Fair Tax as it is with the income tax since any tax on income will be eliminated. That will more than offset what has been taxed.

No, savings are not taxed under the current system as the income was taxed prior to the money becoming savings.

Under the "FairTax" the savings will be taxed (again) when spent.

My savings, such as they are, have already been taxed in full. Upon implementation of the "FairTax" they would be taxed again.

For that reason alone I cannot support the FairTax as currently written.

Based on what data do you make such an otherwise vague and empty claim? The tax burden with the income tax is far greater than the what the rate will be for The Fair Tax. Most people fall into the 15% income tax bracket. Add in the 7.65% payroll tax along with the same rate for the employer matching. Then factor the nearly 23% embedded taxes in every thing we buy due corporate income taxes being passed onto the consumer at each stage of production and the current rate is over 53%! That will be replaced with the 23% consumption tax rate. I don't know about you but I'll take a 30% reduction any day!

More FT faux math.

The FT rate is designed to be "revenue neutral." That means that the government is still stealing exactly the same amount that it always has.

I don't care how the government steals, the fact that it does (at roughly 30% of the GDP) is the problem.

If the FairTax is not the solution to that then it has no value at all.