> “I think Americans love their social programs, more than they hate taxation.”
You’ve just made the case for the FairTax.
Americans will do whatever it takes to put money in their pocketbooks.
That means they will vote to lower the 30% sales tax rate because they will benefit immediately in their wallets.
That means they will vote to raise the rebate because that means more funds are in their wallets and under their control.
The social programs continue under the FairTax. The FairTax was designed to specifically avoid becoming embroiled in spending arguments because nothing is ever done in the arenas of those arguments.
But when the revenue falls because Americans vote for an increase in rebates or a decrease in the NRST, then spending cuts are a must unless Congress votes to raise the debt ceiling. But that’s another discussion.
> “This Bill’s “prebate” continues the “progressive” ideas of the income tax.”
You couldn’t be more wrong. Income at the poverty line is spent 100%. Statistics are that less than 0.0003% of rebate recipients will receive more rebate than they ever pay in taxes.
The poverty line is conveniently viewed as that level of spending and income where adding one more dollar to the mix allows for one dollar of savings. Poverty stricken means there are no dollars for saving, everything is spent.
The current poverty level of spending is about $10,295 per year of which 23% on a monthly basis is about $196 per month. That’s it, a rebate of only $196 per month. The monthly spending is $858. You tell me the statistics of how many people with only $858 per month will save and not spend it all. The statistics show very small percentages. This is near undetectable leakage and is not worth keeping the income tax in place just because some dead beat is getting $196 per month of which he/she has spent little to receive.
The reason you are off is because you are thinking ‘income’ and you need to stop thinking of it in order to grasp the FairTax. People will always need to spend on the necessities of living; food, water, shelter, heat and so on. These things are not free and if they are, then the recipients are fortunate indeed. The people that steal or deal in drugs or sell their bodies must all spend on necessities or someone must spend on their behalf and that means everyone pays under the FairTax. There is no escaping it. This is not true under the income tax or flat tax.
People will always come up with dollars to spend, they must spend on essentials such as food, water, clothing, medicine, shelter, etc. People will sell old belongings, borrow from friends and family, sell their bodies to come up with survival funds and they will spend all. Not many can live on less that $858 per month much less save anything from it. Those that do manage are a very small statistic.
You’ve made a big bogeyman out of the FairTax Rebate. You have done nothing but hand waving saying it smacks of socialism etc, What BS, the Rebate is not socialism, it is exactly what it is called, a rebate on taxes spent up to spending at the poverty line, the line of spending for essentials of living. You have not done statistics, you have not analyzed the demographics of abusers and you have no argument other than it seems like a handout and it’s not.
>> “I think Americans love their social programs, more than they hate taxation.”
> You’ve just made the case for the FairTax.
> Americans will do whatever it takes to put money in their pocketbooks
Perhaps I have not been clear, your comment is a non sequitor. What I am saying is that Americans will suffer nearly any amount of taxation because they love their social programs. In no way does that “put money in their pocketbooks”
The “prebate” is determined by family size and poverty level. How is that not progressive?