Fair tax..?

Question

Pros?

Cons?

Drew Blood - NO I mean FAIR TAX!

Answer 1

Pros - 1) No tax on my paycheck, I take home a full $702.40 a week. 2) I pay higher tax on groceries, but get a prebate (a rebate before the fact) based on poverty-level spending. 3) The government has to take more of an interest in business because that's where their taxes come from. 4) All those morons out there who spend money they don't have on going out to eat, and wasting a lot of their money are penalized more.

Cons - I'm paying the same tax rate as someone who pays $20 million a year, but if I control my own spending, it's no big deal.

Answer 2

The fairest tax would be a Federal Sales tax. That way, the wealthier people who spend more would pay more. The middle class who spend less would pay less and the poor would at least have to pay something. It would also serve to eliminate the "under the table" jobs because it would no longer matter.

But you will never see it happen. It relinquishes too much Government control. Just think about how we have to adjust our lives to accommodate the tax code. People do not sell holdings because of the Capital Gains tax. People only are allowed to invest so much in certain funds or get tax penalties. People cannot access savings in certain types of accounts because of tax penalties.

Some people have to actually refuse pay increases because by moving into the next tax bracket they will actually loose money. Don't forget how much is spent on tax return preparation and penalties.

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Answer 3

The fair tax is a system that is basically a sales tax on purchase of new items. This would eliminate you from having to pay tax on for example a used car. The theory is that the tax has alrady been paid on the car when it was bought the first time.

Pros:
- All individuals would pay taxes based on what they spend, instead of what they make (those with more money spend more.)
- Taxes would be accross the board the same percentage for everyone.
- There would be fewer loopholes to avoid paying taxes since it would be based on purchases and figured into the cost of the product or service.
- You paycheck would increase allowing you to spend more money without raising your pay rate at all.
- There would be no more "fear" of entering a new tax bracket
- Based on projections there would be more money collected each year with this tax system than under the current income tax.
- Inheratance Tax would be gone.

Cons:
- it has not been instituted.

Answer 4

The pros are nearly inumerable.

It would raise the cost of everyday items, but with a much larger paycheck...it would obviously even out. People would be taxed based on lifestyle, you can literally choose how you want to be taxed.

www.boortz.com

Answer 5

I've always wondered why I have to pay significantly more then other Americans in taxes just because I have more income. This truely isn't fair. A flat tax would be.

Answer 6

Why would there be cons to a fair tax?

The question always comes down to "What is a fair tax?"

Answer 7

Pro: Would eliminate the IRS
Con: A national value added tax would immediately add an additional 22%-33% to the cost of everyday items

Answer 8

Tax and fair don't go together

Answer 9

If there is a fair tax, there would be no cons, but there isn't.

Answer 10

abolish the Income Tax and replace it with nothing, the government can afford to cut spending by 33% and we cannot afford for them not to.