[lelio]

The sales tax favors no one. The poor are taxed little, since they purchase little.
That's not true, sales taxes are actually harder on the poor as they have to spend a much hirer percent of their income than a richer person does that can save money. Granted eventually they'll spend it, but in the short run sales taxes are generally harder on the poor.

[Naspino]

Social Security?

How does the NRST provide for social security collection? That will be the DNC's attacking point on this I think. Is it a system where for every dollar you spend you put 1% in the piggy bank?

[ThinkDifferent]

sales taxes are actually harder on the poor as they have to spend a much hirer percent of their income than a richer person does

With universal rebates, the poor will effectively pay zero or negative taxes.

[aristeides]

That discrimination against the poor can be eliminated by exempting necessities.

[coloradan]

For those who must insist on progressive taxation, there is an answer: sales tax rebates that go to everyone, equal to the level of taxation paid by someone at the poverty line. Those people break even (tax paid = refund), while the poorer actually get money and the rich get less. It is one of the seriously-being-considered plans. It even has the bonus of allowing people who wish to not be tracked by the government, for privacy reasons, who don't want to be in "the system," they can just not give their SSN and not get a check. The price for this anonymity is only the cost of sales tax at the poverty level.

[PhilipFreneau]

... sales taxes are actually harder on the poor as they have to spend a much hirer percent of their income than a richer person does that can save money.

The poor spend a much higher percent of their income (as opposed to the rich) on everything they buy, with or without a sales tax. That is one of the factors associated with being poor.

[Ditto]

That's not true, sales taxes are actually harder on the poor as they have to spend a much hirer percent of their income than a richer person does that can save money.

Go to www.fairtax.org and read the bill. There is a 'prebate' provision where each individual regardless of income gets a check from the Treasury each month for the amount of sales tax they would pay on spending up to the poverty level. Low income people will only pay on the protion of their spending above the poverty level and so on up the income scale.

The truly working poor will pay no tax under the NRST. That includes SS and Medicare taxes which the accounbt for all of the taxes on the working poor today. Those with large hidden incomes such as drug dealers and other who currently avoid the income tax entirely will pay their 'fair share of taxes" when they head to the BMW showroom!

[Principled]

...sales taxes are actually harder on the poor as they have to spend a much hirer percent of their income than a richer person does that can save money.

But poor folks will pay no sales tax, as the necessities of life are tax free.

[rwfromkansas]

The FairTax removes the regressive component of a NRST. www.fairtax.org