With the proposed "fair tax" or "flat tax", what about people on social security?

Question

I get a good amount of money to live on with disability right now. With this flat tax, they want to start charging 23% sales tax and eliminate income tax. I don't pay income tax right now. Essentially, all I pay is sales tax. This would cripple me and my little girl.
Are they proposing any sort of adjustment for people like us?

Answer 1

Neither the "Flat Tax" nor the "Fair Tax" have any chance of ever being enacted. Your situation, and folks like you, are the principal reason that neither of these taxes would ever be enacted.

Both of those idiotic proposals would give massive tax breaks to the wealthy at the expense of the poor and middle class. They have no more chance of passage than would a declaration of a state religion would.

Answer 2

They mostly will consider things like exempting food or giving check to low income people to cover the first few dollars of tax a month.
It will only be a good deal for people who are high wage earners. Right now they pay large amounts of income tax and if they don't own a home or have a 401K get hit with huge amounts of tax.
Those that already paid the huge amounts of tax investing in taxable accounts and ROTH IRAs will be taxed again when we spend our savings.
Low income workers and low income disabled people will be about the same tax wise except no special tax breaks like EITC and child care credits.

Answer 3

The "FAIR TAX" proposal makes allowances for everyone to get a "prebate" for a basic amount - but it would still hit the poor and middle class a lot harder than most of the "rich".

Answer 4

I wouldn't worry too much.

A total rehash of the tax law, such as instituting a Flat Tax or the "Fairtax", has absolutely no chance of becoming law in the foreseeable future.