a value-added consumption tax replaces federal income tax. This tax reform will shift the effect of taxes from income to consumption. are in favor of or against this shift. Also if the tax reform is carried out, how will the Federal Government's potential to conduct a fiscal policy will change?
2007-11-21 12:30:59 · 4 answers · asked by M_E_M_P_H_I_S 1 in Business & Finance ➔ Taxes ➔ United States
The richest Americans will have more money. Everybody else will have less.
2007-11-21 13:23:05 · answer #1 · answered by Anonymous · 2⤊ 0⤋
When the FairTax Act H.R. 25 passes and replaces all income taxes with a single sales tax on new items. The FairTax now has the support of hundreds of thousands, 72 congressional sponsors / co-sponsors, and 7 presidential candidates. See www fairtax org
The "VAT" is not the same. It is a tax on each stage of the sale to the end user. The corp income tax results in the same thing. All taxes are passed on or embeded in the price of the product.
I invite you read more about the long term or dynamic affects of the FairTax.
2007-11-22 00:25:00 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Totally against it. It would be a major break for the wealthy, who amass wealth, not spend it. If you give the wealthy a break, someone else has to pick up the slack. That would be the middle class and working poor.
There's been a bill in Congress for over 8 years now, languishing in committee, with zero chance of ever making it to a vote. Congress knows it would be a tax break for the rich, the likes of what the current administration can only dream about. It will never happen.
2007-11-22 00:41:43 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Not going to happen. Good luck on your homework.
2007-11-21 20:39:34 · answer #4 · answered by r_kav 4 · 0⤊ 1⤋