How would the Fairtax improve your life?

Question

Go to Fairtax.org. read and think. If you are under 40, you should support this

Go to Fairtax.org and read and think. This is not an income tax. If you are under 40 you should support this

Answer 1

The fairtax would not only improve my life, but the life of everyone.

Under this plan, I would not be punished for saving money or selling stocks for a profit.

I am not sure why Steve thinks this would increase taxes on the poor, and give huge tax breaks to the rich. This is simply not true.

This plan, like many national sales tax plans I have seen has a tax refund for all money spent up to the poverty level, which means the poor would pay nearly no taxes at all. This plan would give an automatic $10,000 refund for a single person household, which increases for each additional person, meaning the poor would have at least an extra $10,000 a year of income. If you are poor than you will not buy enough goods and services to surpass the $10,000+ yearly refund, so the net effect is more money in the pockets of the poor. Remember a sales tax is a percentage of money spent on goods. If the national sales tax is 23% and the refund is $10,000, a single person who pays $20,000 a year on goods and services, would have paid $4,600 in taxes. However, under this plan he would receive a $10,000 refund yielding a net gain of $5,400 each year to either spend or save, and if he were to save it, he would not be taxed on the interest earned on the $5,400 savings.

The rich are the ones spending the most money, so they will pay the most under this tax plan.

This plan is the most fair, since if you do not want to pay any taxes then all you have to do is not buy anything and you won't pay any taxes!

Great Question!

Answer 2

Any flat tax that is revenue-neutral will amount to a huge tax increase on the poor, a small tax increase on the middle class, and a huge tax break for the rich.

That's just the way the numbers work.

As a relatively well-off person (who has worked for it) I feel this country has given me wonderful opportunities and am happy to pay that back in taxes that will help provide those same opportunites to others.