I would hope that anyone that is answering this question would have some kind of knowledge of the fair tax. (S25 and HR25)
2006-12-12 04:39:45 · 5 answers · asked by jay r 2 in Politics & Government ➔ Politics
If there has to be a federal tax paid by individuals, I support a consumption tax of some sort. The "fair tax" you're referring to, if I recall correctly, actually is quite fair to the poorest of the population, and I believe the poorest actually receive more money back as an annual rebate than they spend on taxes.
A consumption tax has the big advantage of encouraging savings by everyone, something we are currently severely lacking, and in particular encourages the very wealthy not to spend millions and even billions on luxury items, and instead invest it, which increases economic growth, from which everyone benefits.
2006-12-12 04:54:30 · answer #1 · answered by Dave 2 · 0⤊ 0⤋
I really don't' think it could work. The way our tax system works now, your taxed according to what you can afford to pay. The "fair" tax would ax based on what you buy. the thing is, most people buy at near the same level, so it would hit the poor harder then the rich. The rich often just put their wealth in the banks to let it accumulate. And that just doesn't work- the purposes of taxes are to fund the government. The government would get a lot less money, and the nation might grind to a halt.
2006-12-12 13:51:00 · answer #2 · answered by The Big Box 6 · 0⤊ 0⤋
I am against it because tax is also designed to encourage beneficial behavior and discourage other behavior. For example, allowing people to deduct mortgage interest encourages people to buy houses. With respect to the "fair" tax - it discourages spending. This is never a good thing for an economy. We thrive on spending. The people most likely to have their spending reigned in is the middle class and we need the middle class to stimulate the economy with spending.
2006-12-12 15:12:05 · answer #3 · answered by Tara P 5 · 0⤊ 0⤋
It seems to me that if stuff costs more, people will buy less stuff, regardless of the lack of a tax on income. Therefore the economy goes into yonder commode. That, or people will just buy stuff from other countries (I'm talking big stuff, not groceries) and bring it here.
2006-12-12 12:49:21 · answer #4 · answered by Schmorgen 6 · 0⤊ 0⤋
It's an idiotic idea, a tax on consumption impacts the poor more and can actually help to lower the GDP
2006-12-12 12:44:09 · answer #5 · answered by Nick F 6 · 0⤊ 0⤋