Isn't the FairTax such a great idea? Can you think of any negative affects of the FairTax?

Question

If you have no idea what i'm talking about then see this, www.fairtax.org

michaelsan: When businesses don't pay any taxes on purchases that will stop outsourcing jobs and bring businesses back to the U.S. creating a better econonmy and more jobs.

bob h: Many websites might misrepresent the FairTax in someway or another, you should read the book for a definite explanation of the proposed tax system.

Answer 1

The pros outweigh the cons by a long shot.

To clear a few things up. Businesses currently don't pay taxes, they pass that down to their employees.

As for all those poor IRS employees, they'll find other jobs. We didn't cry too much when the automobile came out and all the buggy whip makers had to find new jobs.

The thing I like about the Fair tax is that it will collect billions of normally uncollected taxes and it will bring companies back to the US. Currently companies are moving headquarters overseas because we have such a screwed up tax system.

With the Fair tax, if they want to increase the tax rate they'll have to do it to everyone, which won't be that easy. Currently they can lie and say they're just making the rich pay more, but we know the tax increases always affect everyone.

The Fair tax is probably too good to come true, but if we ask for it loud enough, you never know, it might pass.

Answer 2

The only good thing I see is it has to be a Constitutional Amendment, which means it is all but assured of defeat. It would have to be since it requires Repeal of the 16th Amendment. So Why didn't they state that openly rather than attempt to disguise that fact by referring to it as separate House & Senate Bills? Since they do not state that openly, I assume the news for most of us gets worse from here.

I Googled it & spent about 20 minutes checking out various links, & saw nothing but information about how wonderful it is in exactly the same words on all links I visited. Absolutely no specifics are given, other than it is some kind of sales tax with built in loopholes, of which the authors worked very hard to hide. At face value, I see a tax which will cost the lower middle class more in taxes, greatly decrease the tax owed by the very wealthy, eliminate the Social Security & Medicare systems funding process w/o explaining how it would be funded under the new plan, + make all the tax cuts Bush gave to the multimillionaires permanent. Another right wing plot to push more of the tax burden on those who can least afford to pay - a more complicated form of the flat tax the big money men trot out every few years.

But, hey what do I know? I have only 3 years of college under my belt & no law degree & a lot of skepticism about feel-good-titled laws that shaft us every time. Just because I am paranoid does not mean they are not out to get us.

Answer 3

It sounds like a good idea, but....
The FairTax plan Abolishes the IRS ...what happens to all of the IRS employees? What replacement jobs are available?

The FairTax plan closes all loopholes and brings fairness to taxation ....
What happens to all of the companies (and their employees) that exist only because of the current tax plan?
It would put a large number of employees out of work.
Also, the PACS for the enrolled agents, tax accountants, HR Blocks, and the like, will not allow this type of fair tax because it is a treat to their livelihood.

Answer 4

THE BIG NEGATIVE... it would decrease spending... by increasing the prices of items... and ESPECIALLY by taking away the "deductions" that many currently get by spending money...

I have an uncle that buys a new business truck every year, because it works out well with his deductions, where he can afford to do that and he's not paying that much for it...

but under your system, no only does he not buy the truck because he doesn't get the deduction bonus, but he CERTAINLY doesn't buy it because it's now even more expensive...

it would only give the wealthy another reason to keep their money instead of spending it, meaning even less taxes on the wealthy...

and no taxes to businesses? are prices going to go down because of that, since businesses "don't pay taxes" as some people put it... HAHAHAHA.... of course not...

businesses do pay taxes and if they try to pass it on, they often get left behind by the competition that can't afford to pass it on...

Answer 5

Great idea... after they delete all the wasteful programs so the "fair tax" will not have to be as high are the predict. Speaking of which, they estimate a certain percentage for the tax... what happens when they realize they made a mistake again and the "fair tax" rate has to be doubled?

As far as putting people out of work... se la vie... progress has always put people out of work... how many blacksmiths you know these days? Wheelwrights? Phasing in the new tax plan will make it easier for all to digest.

Answer 6

There will be people trying to scam the system by claiming two heads of household so that they can receive two refunds from the government. A better way to do it would be to follow Florida's example and not levee taxes on certain types of products (like milk, bread, bottled water). This would prevent the abuse of the new system and still allow people to buy their necessities tax free. Otherwise, it is a great idea.

Answer 7

I am concerned it is a boondoggle for business, as the fine print says that no business will pay tax on any purchases. What is fair about that, as business is generating the most income for themselves. It sounds like a hidden Republican sceme.