What are your views on the FairTax?

Question

If you are unfamiliar with the FairTax, here is a definition:

The FairTax is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the point of purchase on all new goods and services. The proposal also calls for a monthly tax rebate to households of citizens and legal resident aliens, to "untax" purchases up to the poverty level.

Answer 1

I can't wait but I doubt that it will pass, It would take away most of the powers from government. I'm all for it...

Answer 2

The Fair Tax is most likely the most researched tax proposal ever. Over $30 million have been spent in research through independent economists including Boston University, Yale, Kato instutite, and others. Then their research was turned over to market research companies to take to focus groups of common individuals to see what they thought of the proposal. The economists were recommended a number of exemptions such as food and other basic necessities. But the focus groups vetoed any exemptions. They are the ones that recommended the prebate! No Exemptions.

This makes the proposal simple and avoids the plan from being modified. (If there are exemptions, the plan is no longer the Fair Tax!) Since the people with more income will always buy the higher quality goods at a higher price, they will be paying a large amount of taxes. Lower income family will by the basic level goods at a much lower price, therefore will pay less taxes.

Everyone (that qualifies) will get the prebate. Therefore before the low income family can spend all their income on new goods and services, they would not spend the full amount of the prebate on taxes.

The major thing most people do not understand about the current tax code is that BUSINESSES/CORPORATIONS do not pay any taxes! All taxes that are imposed on businesses are merely a "cost of doing business". Just like materials and labor costs of the business, the tax costs are passed on to the consumer in the selling price of the product or goods. INDIVIDUALS are the only ones that pay all the taxes.
These taxes are in addition to the individual's personal income tax, SS & Medicare taxes they pay. At least the individual can see how much his personal taxes are, he has no way to see these embedded tax costs.

Politicians will lose the control they have over which americans will pay all the taxes. There will no longer be any class warfare of the rich vs poor americans.

The people will regain their freedoms back. The individuals will control how much they will pay in taxes.

Answer 3

It is BY FAR the BEST idea that anyone has had in a long time! For those of you who don't know what it is, go to FairTax.org. I mean, come on people, it abolishes the IRS! What could be better than getting rid of that beauracratic agency filled with red tape. Have you see the latest issue of the tax laws? Not only do you have to have a PhD to read it, you have to lift weights daily just to be able to pick it up. I read the book a few months ago and I've since signed the pledge and gotten involved with the rallies in my area and surrounding states. I encourage everyone to read the book or at least look at the web site. Love it, hate it...that's up to you. However, it offers a viable alternative to the mess we have now.

BTW...the 2nd best thing about the the FairTax is that it will make politicians work for a living.

(same response as the last time when you asked)

Answer 4

I'm partially for it. I'd like to see taxes raised on purchases, but with some exceptions (groceries, medicine, clothes under $50), and have lower income taxes. Raising sales taxes forces illegals and tourists to contribute to our revenues.
However, I don't think it should replace social security/medicare tax yet, and I think those monthly rebates would require such a complicated bureaucracy that the program would end up being expensive to run. Just give the exemptions I mentioned above, and for the poor, a card that they can show that will exempt them from certain other taxes.

Answer 5

i've got confidence that is an extremely good, doable plan and desperately choose we could enforce it. regrettably there are too many people waiting to shoot it down with fallacies, even while the information are located before them. i decide to advise that anybody tempted to shoot it down study the books decrease than first so they might a minimum of come to knowledgeable end on the subject remember. The FairTax e book via Neal Boortz and John Linder FairTax: the certainty: Answering the Critics via Neal Boortz and John Linder

Answer 6

My point is:
13% of income tax,
10-20% of value-added tax.

Like in Capitalist Russia.
Unlike in the United Soviet States of America.

Answer 7

We don't need anything to replace the Federal Income Tax. Your tax money goes to pay for the illegal debt on the dollar.

Why would you want to trade the tiger for the lion?

Answer 8

On the surface it sounds great. The Government will surely screw it up with amendments over the years.

Answer 9

Absolutely, positively all for it! I do also agree with kX, but some things have to be done a step at a time! *sm*

Answer 10

Bigger boondoggle than homeland security.