What do you think about the FairTax?

Question

The question is simple, post your response. Personally I think it's one of the best ideas ever, not only would it help people who need it, but it'd crack down on illegal immigration as well.

For more information, go here: http://www.fairtax.org/site/PageServer

The Fairtax IS a sales tax. (Lol to whoever said they were against it for that reason)

Answer 1

The American people can be divided into three major groups
First; (largest group) These individuals have no idea what the Fair Tax is. They spend all their time watching American Idol, Entertainment Tonight, MTV, NASCAR, MLB, NFL, NBA, College Football and many similar programs. They do not seem to be concerned with politics, world events etc.

The second group are those that have heard of the FairTax and fully support the Bill. A number of the posters on this and many other websites are well aware of the benefits of the Fair Tax.

The last group are those that oppose the Fair Tax. This group has three subgroups. There are those that oppose the the bill because the heard things about it, but have not really looked into it. They have not studied the bill and are very confused. Once these individuals learn the true facts about the Fair Tax, they will support the bill.
The other two subgroups are hard core opponants. There are those that have a financially vested interest in the current income tax system. This includes lobbist, tax attorneys or accountants (not true cpa's) and those that have substantial funds in various tax loopholes where they avoid paying taxes. The last group are the politicians! They will lose the power and control they currently maintain to the American People. Many of them may also fall into both of these subgroups.

Several of those who have responded to this question appear to fall into the first subgroup indicated above.
regerugged states "It is a fraud. .... I am in favor of a universal sales tax."
kris r " It would tax poor people a stronger percentage of their income... that would be double jeapody for the poor too."

The Fair Tax is basically a "sales tax" on New Goods and Services. There is no tax on used goods. Low income people who buy used goods, they would not pay any tax on those purchases. It also contains the Prebate to toallly remove any sales tax up to the poverty level for every household. This Prebate makes the sales tax a progressive tax.

Bekindtoanimals22 "My tax rate is less than 23% in federal taxes. ... It would also take away refund spending or saving in the spring."

The basic employee has 7.65% SS tax and 2% Medicare tax taken out of their paycheck off the top. The lowest income tax rate is 15% after standard deduction. This puts the an overall 24.65% on low income earned after the standard deduction for personal income! Then you must consider the embedded taxes that the individual pays on everything they buy or service they use. BUSINESSES DO NOT PAY ANY TAXES! The taxes on business are merely a "cost of doing business" and is passed on to the consumer in the retail price. This averages around 22-23% of the retail price. Therefore, this brings the individual taxes well over 40%! The Fair Tax percentage of 23% certainly should look much better now.

We also must consider the Prebate. Would you perfer to give a LOAN to the Federal Government interest free for an entire year just to get some money back in the Spring? Or, you can have the Prebate check every month at the beginning of the month equal to 23% of monthly poverty level for the size of the family.

I hope the posters I have mentioned do not get upset or feel I am picking on them. Rather, I hope this will motivate them to look further into the Fair Tax Bill to become one of the true believers of the Fair Tax.

Answer 2

The FairTax is but a concept with a name which appeals to taxpayers. In all seriousness, do you ACTUALLY expect 100 Senators and 435 Congress people to keep their mitts off of a FairTax, if the concept were passed ? The ink from the president's signature on such a bill would not be yet dry before this crowd of politicians would be in corners huddled together, wrangling modifications and exemptions to the 'FairTax' to somehow help their districts and constituents. If you think anything else would happen, I have some lovely beachfront for sale at an attractive price right in the middle of the Mojave Desert.

Answer 3

I used to really support it, but I've been doing a lot more research, and I've come to the conclusion that the tax, as written, is a step in the wrong direction. It is monumentally unfair to everyone who's saved for retirement, it will allow the government to "ban" items without ever legislating it (think of a 10,000% tax on firearms. Perfectly legal under the FairTax law), it puts the burden of proving the tax has been paid on the taxpayer instead of the business (don't believe me? Read the law.), and generally doesn't really simplify things at all! Read the “Fair Tax Act” for yourself. You'll discover there's absolutely nothing simple about the legislation. Already – before the inevitable decades of amending and tinkering – H.R. 25 is an enormously complex proposal that contains gems like these:

SEC. 602. (a) IN GENERAL- The sales tax administering authority may levy and seize property, garnish wages or salary and file liens to collect amounts due under this subtitle, pursuant to enforcement ...
SEC. 103. (f) BARTER TRANSACTIONS- If gross payment for taxable property or services is made in other than money, then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased.

SEC. 905. (a) IN GENERAL- All persons, in whatever capacity acting (including lessees or mortgagors or real or personal property, fiduciaries, employers, and all officers and employees of the United States) having control, receipt, custody, disposal, or payment of any income to the extent such income constitutes gross income from sources within the United States of any nonresident alien individual, foreign partnership, or foreign corporation shall deduct and withhold from that income a tax equal to 23 percent thereof.

Yes, that's right. That last provision is for an income tax and it's included in legislation that claims to “abolish the income tax.” And those are only a sample of the pitfalls and landmines you'll find within this terrible legislation. Read it. Then re-think whatever favorable attitudes you may have had toward it.

Answer 4

The fair tax is a step in the right direction, but total tax abolishment should be the main goal. Taxes on income should not even be happening. Income is not *profit* therefore it should not be subject to income taxes. I am in favor of eliminating all taxes and having the Government actually work and *produce* something for the money it earns instead of stealing it from our pockets. It is a fact that the Government actually produces no goods and provides no services (it contracts private parties to provide most of the services) yet it gets billions of dollars a year - for doing nothing.

Answer 5

For it

I am for a flat tax because it would simplify the tax code, which is badly needed. Every American should be able to file their own taxes.

I am for a sales tax because it will bring manufacturing back to the US and hurt China, which is a good thing. Also, I am tired of the government manipulating us with the tax code.

The main reason why I support it is so many liberals who I cannot stand are against it.

Answer 6

My tax rate is less than 23% in federal taxes. I would imagine this would further limit my buying power. It assumes that people will purchase the same things they do now only it will cost 23% more. Are home and auto purchases included in this? It sounds awful to me. That would actually decrease my quality of life. You would still have to pay SS and state sales tax on top of the 23% would make the sales tax 29% here. I think it would be punishing people who earn the least. It would also take away the refund spending or saving in the spring. Again, the more money you have, the more beneficial it is.

Answer 7

Okay here is the deal; I’m not a real "smart" person, so all of this political crap is like flies over my head.

With that said; I’m sick of paying taxes that are not working. Our Government is not working, our political system is not working and I've been working my @zz off for over 30 years.

Why should ANYONE including "a Government" GET SOMETHING FROM NOTHING?

Answer 8

I like it darth, because it would pull money out of the underground economy. Those rich drug dealers, smugglers and all wealthy criminals would have to pay the national consumption tax. Also, those who get paid under the table, would have to pay their fair share of taxes. Fred Thompson likes it; read below.

I signed the petition and sent it to my US Reps!

Answer 9

Personally I don't think ANY tax is fair and the Income Tax that we have now is illegal.

http://www.youtube.com/watch?v=Y39H6nUOhRw
America: Freedom to Fascism


NO to the NWO...

Answer 10

It would tax poor people a stronger percentage of their incomes more than the rich folk!That would also mean that would be double jeapody for the poor too.