Proponents of the Fair Tax System...?

Question

How does it affect the poor? Would they be paying more taxes if this system was implemented. And if you are agianst our current tax program, what other options are there? Thank you.

Answer 1

The poor would not be paying any more in taxes then they are now. They would have to pay the sales tax but would receive compensation for sales tax on food, clothing and other necessities. The would not be paying any taxes unless they buy things that are not necessities.

Answer 2

Under the so-called FAIR tax

Those who make too little to pay tax now, will now be taxed.
Those who make very little money will get a tax increase.
Those who make a fair amount of money will get a tax increase.

Those who make an average income will get a tax increase.
The upper-middle class will get a tax increase.
The extremely wealthy will get a huge tax break.

Gains from Tax Free Municipal bonds will now be taxed.
Distributions from Roth IRAs will now be taxed.

Handicapped people will lose all tax breaks.

S-Corporations gains will be taxed twice.

Do I have to mention, that every time they come out with a new tax, they promise to drop the old taxes and never do it?

Answer 3

I am for Russian tax system:
1. 13% of personal income tax.
2. VAT: 0% (exported goods), 10% (food), 18% (manufactured goods).
3. Profit tax of 20-25%.
4. Asset tax of 2%.

The poor will save more under this system.

Answer 4

Everyone will be given a tax rebate for the necessities. Poor people will not have to pay much in federal taxes, just like it is now.

Answer 5

agencies do not PAY TAXES! Any tax this is located on a agency is a "value of doing agency". This value is handed directly to the client as a improved merchandising fee. The honest Tax eliminates all earnings taxes on agencies. there is not any tax on the producer, distributor or wholesaler. The honest Tax applies on the retail point on NEW products and amenities. each and every agency would desire to report and acquire a agency license. they might desire to report revenues tax comments with the state they are authorized in. in the event that they pay a tax on incidentals the acquisition from a shop, they report that fee and get a credit for the tax. they might desire to coach their revenues are to different agencies (mfg to purchase). The shop collects the honest Tax from the client for all new products. There are 2 events (supplier and customer) that would desire to conspire to stay away from the taxes. (under the present earnings tax gadget, it basically takes one occasion to cheat.) whilst the shop submits their revenues tax report and would not report the entire revenues tax good, they are putting themselves up for a tax audit through the State. via fact the State gets a cost from the feds to collect the honest Tax, the state could have a improved interest in going after human beings that don't report good. (the quantity of honest Tax would be plenty extra beneficial than the state revenues tax quantity!) A learn that replaced into carried out to make sure the effect on the honest Tax collections through the state of California confirmed that the state might acquire sufficient commissions to totally fund the dep. of revenues for the state collectively with a extra robust form of auditors mandatory to attend to the added operations. this might effectively shop California their modern expenses! Any state could have the skill th capture human beings attempting to stay away from paying the right state and federal taxes! yet as continuously, there'll be human beings which will try to some will injury out with it. the final quantity would be appreciably under those dishonest under the present earnings tax gadget.

Answer 6

in a fair tax system the poor can save their money and not get taxed for doing so.