Flat Tax - taxes your income. You pay a fixed amount of tax (e.g. 19%). You might have to pay payroll taxes. You may not get deductions from mortgage interest payments. Flat tax doesn't get rid of other hidden taxes (i.e., social security, medicare, gasoline tax, sales tax, tobacco tax, alcohol tax, property tax, etc.). You may still pay capital gains taxes as income.
Fair Tax - taxes only when you spend (19-23% sales tax paid once). You don't pay income taxes anymore. It gets rid of hidden taxes such as social security and medicare. It gets rid of capital gains taxes when you sell your house or when you save your money, or when you invest your money. It lets you keep your entire paycheck (you pay no payroll taxes). It allows you more money to spend. It allows you to save money without any taxes on your savings. It also doesn't tax used items (eg. used cars, eBay items, etc.), and gives you rebate on necessary items (eg. food, clothing, etc.) http://www.fairtax.org
2007-06-07
04:31:27
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9 answers
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asked by
Think Richly™
5
in
United States