Do you guys prefer the Income Tax or the Fair Tax and why?

Answer 1

The current income tax system is broken beyond repair. No one at the IRS understands it. It allows politicians to penalizes people for doing a good job and rewards those that do nothing. It is social engineering. It allows for the wealthy to pay (using lobbists) have tax loopholes created in order to avoid paying or reduce the taxes.they pay.

Politicians use the current tax system to tax businesses. This hides the taxes as "costs of doing business" that are passed on to the comsumers. The consumer does not realize they are paying these taxes. ("Let's tax the greedy oil companies on their excess profits and use the money for research on alternative fuels." The price at the pump goes up $0.10 to cover the increase in cost of doing business. We pay again!)
BUSINESSES DO NOT PAY ANY TAXES. The costs are passed on to the consumer (Individuals). It only raises the prices of goods or services.

The Flat tax (still a tax on INCOME) does not change anything. There still will be an IRS, lobbists and tax loopholes. The original income tax was a flat rate and Ronald Regan had the income tax code changed to a flat tax with two levels. It has only been modified over 14,000 times since 1986! The same thing can happen again.

The Fair Tax eliminates all taxes on income and payrolls. It emiminates all taxes on business and reduces the price of goods and services. The Fair Tax only applies to NEW goods and services at the retail level. There is no tax on used goods. It is a comsumption based tax, not a tax on earnings, income, savings or investments. There is a single tax rate that applies to EVERYONE. no loopholes, no exemptions. However, the individual determines the amount of taxes they will pay, based upon HOW they spend their money, not being told what they will pay based on what they EARN.

There is the prebate that will totally cover the tax to be paid up to the poverty level for the size of the household. Therefore, the household will pay no tax up to the poverty level. The individual household with income (or spending) at twice the poverty level will have an effective tax rate of 11/5%!

The Fair Tax Bill is the most researched and documented piece of tax reform leglislation to be in front of the Congress. Many economists have researched the bill and are fully in support of the Fair Tax.

The only way there has been any objections have been by people that do not understand the Fair Tax, misrepresent the bill or change the parameters and object to their own changes or just lie about the Bill. The major objectors to the Fair Tax are those who have a vested interest in the Income Tax Code or are politicians.

Answer 2

Good question. I do support it for the reason that out founders wanted fair and equal taxation. They originally called for a poll tax. (A flat tax or enumerated tax) The poll tax was the single source of revenue for the Federal Government. Now we have this sliding scale of progressive and regressive taxation introduced by the 16th amendment. It does not promote equality. With these higher taxes for corporations and the rich. They feel that they have more say into to the running of our government than the lower 49% now paying no tax at all. This is why lobbying and special interests exist. The heavily taxed pay to exert their will onto the government to protect and promote their interests. So ultimately we have a system where progressive/regressive taxes = bigger government and unwanted influence around it. If we were to level the playing field with a flat tax and promoted smaller government we could dry up all the unwanted influence and everyone rich or poor would have an truly equal say into the running of our government.

Answer 3

I support the Fair Tax it is a way for everyone to pay their fair share I am tired of seeing people on welfare and public housing that are driving new cars and wearing 200 dollar sneakers and I want them to pay taxes the same way I do. I want to get rid of the embedded taxes that we pay without knowing it for example the raw materials for a product is taxed that is passed on to the parts manufacturer the company buying the parts pays those taxes plus passes them to the next one until the consumer buys the product and pays all the taxes that are in the price as well as the normal taxes this needs to stop and everybody should pay their fair share

Answer 4

I prefer the income tax, because it's a lot more fair than the so-called "Fair Tax". The tax you pay should be based on how much you earn, not on what you want to buy. Furthermore, with the income tax, the government can give incentives and tax breaks, for example for charitable contributions, that would not be possible under the "fair" tax.

Answer 5

I prefer a flat income tax rather then our progressive one that we have now....I do not prefer the fair tax. Those who propose it do not answer the question on how high that tax would have to be to compensate for the massive cut in spending our society would immediately embark on...some of them even suggest how great it would be that we all save more (agree in part) but if America stops spending companies go broke, people lose jobs, and our society in a world of hurt - hence the Fair Tax is a mistake.

Answer 6

Several of the answers are incorrect.

Fairtax supporters will tell you that the % tax is usally 23-28%.

But since its only at consumption point...and it would be the only tax...

Since we pay a lot more in taxes than this, and this one exempts all who earn below a certain $$ amt. its better.

Btw we pay now in taxes:
Fed
State
Local
Sales
fees
licenses.

In 1994 and again in 2001... despite making less than $30k, I paid in total nearly 50% in taxes.
Yes, I had huge deductions on fed & state but.

All in all, we all pay a lot more taxes than just income.

The fair tax is the only tax that isnt regresssive.

Answer 7

Income tax is better because it is applicable to all and must have a reasonable rate depending upon the amount of income.

Answer 8

Since the government is a mere service, like the power-company or the phone company or the cable company, I'd prefer them to send me an Invoice, with a statement of services rendered.

There's a lot of services they offer I'd prefer not to subscribe to. Let's go a la carte, and see which programs survive...

Answer 9

neither I like the flat tax.