2007-09-18 07:26:06 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
BTW...this means that income tax would be REPLACED by a national sales tax.
2007-09-18 07:44:02 · update #1
You are talking about the "Fair Tax Act" and my personal opinion is no, it wouldn't work out better. Rich, middle class, and poor all would pay the same % on purchases, which would hit the poor hardest, middle class next, and the rich not at all. And if you had some kind of rebate to people that they are proposing, you'd still need to have some kind of govt dept keeping track of all this, so you'd replace the IRS with the SRS (Sales Revenue Service).
2007-09-18 08:17:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In theory it sounds nice, but it wouldn't work because each state, county, city, etc. has different budgets to accommodate different needs. With a national sales tax, anytime a huge project needed to be done (repair roads, welfare programs, etc.) you would have to foot the bill through a higher sales tax even though you won't receive any benefit. The way sales taxes are set now, you benefit from the taxes you pay.
2007-09-18 14:51:47 · answer #2 · answered by librarianb 3 · 0⤊ 0⤋
Nope. The rich would go from paying 35% of their income to paying as little as 1% if they are super rich and save most of their money. The richest 1% of Americans currently pay about 30% of all taxes, so taxing them on the maybe 5-10% of their income they spend would be afwul for our country. Plus they can simply hoard money while they work and retire elsewhere and spend every penny of it once they leave the country (which would be soon considering we would would no longer have police, firemen, roads, air travel etc.)
2007-09-19 02:26:57 · answer #3 · answered by jct_suave 1 · 0⤊ 0⤋
Well, if there were a national sales tax, the people on welfare might actually have to pay taxes...I guess they'd have to be given an "out" anytime they used food stamps, but what does that do for the people who earn just enough to be considered above poverty level? I guess they'd start their welfare program shortly after the national tax begins.
2007-09-18 14:35:38 · answer #4 · answered by Serena 7 · 1⤊ 1⤋
No chance. It would massively hurt the poor and middle class. Only the wealthy would get any kind of a tax break.
2007-09-18 14:56:23 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It would work better for the upper middle class and above. For middle class on down, they'd end up paying more that they do today.
2007-09-18 15:00:01 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
It would hit lower income people proportionately harder than higher income people - the rich would get richer - bad idea
2007-09-18 14:50:11 · answer #7 · answered by Anonymous · 1⤊ 1⤋
I think we pay enough taxes already.
2007-09-18 14:40:27 · answer #8 · answered by Barbra 6 · 0⤊ 1⤋
without adoubt
2007-09-18 14:36:49 · answer #9 · answered by Rick K 3 · 0⤊ 1⤋