Why shouldn't we support the Fair Tax Plan?

Question

I've read the book and I feel the plan is transparent and would benefit the country in many ways. I'm tired of having my money taken forcibly. I don't like having a tax code that is impossible to interpret. This seems like an excellent solution.

Answer 1

The wealthy would never stand for it . They would loose their deductions. And proportionately pay more because of their vast wealth .

Answer 2

The "Fair Tax Plan" is neither fair nor smart:
1. It is a highly regressive tax plan that penalizes people for being poor. Those of lower income will, out of necessity, spend a far greater proportion of their income than those of higher income, so a consumption tax will fall disproportionately on those with the least ability to pay.
2. The rich will find ways to consume that will avoid the tax to a greater degree, such as spending their money overseas where it will not help our economy.
3. While Americans are more guilty of overconsumption than those of any other nationality, and decreased consumption would be good in terms of decreased degredation of resources, we should think of how this would impact our economy.
4. As mentioned above, a consumption tax would tend to push people (to the extent that they are able) to either buy in the underground economy or buy overseas to avoid the tax. This would mean that tax revenues would fall well short of what the advocates of this system suggest.

The real agenda of those behind the consumption tax is to shift tax burden towards lower incomes while simultaneously decreasing tax revenues. It is anti-poor and anti-government. Until there is some concensus on what spending we should give up to pay for this, the proposal encourages increased public debt, thereby taxing future generations.

Answer 3

There is no reason other than ignorance. HR25, the legislation known as the Fairtax, is not punative towards the poor. The imbedded taxes on goods (estimated at 23%) will be replaced with the Fairtax. Once all of the embedded tax is gone and replaced by the Fairtax, the cost of a $10.00 item is still $10.00. The only difference is that the taxes will go directly to the Federal Government. How are "rich people" going to purchase a loaf of bread overseas? If you haven't read the legislation or the book, please do so before you answer. Educate yourselves on this PLEASE!

Answer 4

JD: The wealthy already pay proportionally more. The top 50% of wage earners in the US pay over 96% of the taxes.

Seems quite reasonable to me. You pay tax based on what you consume, not what you produce, which is inherently fairer. Because the rich have more money and thus spend more, they still pay more tax than the middle class, which oughta satisfy economic liberals, but probably won't. And if I understand correctly, essentials such as food and clothing would be exempted, which would help protect low- and fixed-income Americans. Not to mention the savings and relief we would all enjoy from being rid of the IRS.

Answer 5

.. there are different versions... and I haven't read the book you mention... but I think it could have an adverse affect on both the poor and the economy...

the poor would have to pay a considerable amount more for goods, at a time when salaries aren't increasing and gas and insurance prices are going through the roof... and most poor don't pay any or very little income tax....

the economy would suffer because the rich would not have an incentive to spend (like they do with deductions now) and would actually have an incentive to save their money, to avoid paying the taxes...

perhaps your plan discusses these issues... like I said, I'm not familiar with your exact plan...

Answer 6

Why not go one step further? Let's outsource and off-shore the entire federal government to India and China for 10 cents on a dollar and give ourselves a two trillion dollar tax cut. Everyone kicks in $1,000 New Year's Day and that's that.

Answer 7

I assume you mean the flat tax. Ask yourself some questions, Why are the rich foaming at the mouth for a flat tax? Who will benefit from the flat tax and unless your rich, why won't it be you?

Answer 8

Because there's nothing "fair" about the tax plan, just simplistic BS.

Answer 9

Care to elaborate?