what do y'all think of the "fair tax"?

Question

I'm all for it.

It's that guy: I admit I don't know a lot about it, just what I've read, but my understanding is that poorer people would receive a lump sum to compensate for that 23 percent tax. Is this not correct? Any further input is appreciated.

Answer 1

It's a bad joke. Period.

First off, it's 30%, NOT 23%. That's the first lie that the proponents will try to force down your neck. The call it an "inclusive" tax at 23%. However, sales taxes are ALWAYS added on TOP of the selling price. Even the proponents admit that looked at that way it IS 30%. And keep in mind that that's ON TOP OF your state's sales tax. Those run as high as 10% in a few locations and much of the nation already pays over 8% now.

How anyone can think that $60,000 in additional taxes on top of the purchase price of a new $200,000 home is a good idea escapes me. Of course, with taxes that high, the construction industry would collapse overnight. Think of all of the construction workers forced out of work. Fair? Are you KIDDING me?

The "prebate" feature will lead to widespread fraud as it's NOT paid equally to all citizens. The IRS can't track income in real time today. What makes you think that they'll magically be able to track family units in real time all of a sudden? More billions wasted needlessly on more computer systems that can watch YOUR every move. No WAY! It's bad enough that we've had The Patriot Act shoved up our backsides and broken off. You want MORE government monitoring. GET REAL!

And how about the massive black marketing that it will trigger. Remember, you're talking about avoiding up to 40% in taxes. It's one thing to get your bootleg booze and cigs through organzed crime. How about your next DVD player and a box of Fruit Loops? No thanks!

Of course, the government will try to combat the fraud with draconian new laws to ensure that taxes are paid. Picture a field audit in your home while an IRS agent digs through your drawers looking for untaxed gruns. Or teams of agents picking up your trash looking for that untaxed box of Fruit Loops. Fugettabouddit!

Answer 2

Everybody would get the "prebate". There are huge gaps in exactly how it would be really administered, and these are glossed over - like what happens when "household" shifts during the year, and how are false claims resolved.

But of course the EIC that most working poor and, for people with kids, many middle class people get would be gone.

I'm NOT for it because the wealthy would pay less and the poor and middle class more - and they call that "fair"?

And yes, I've looked at the website, and read N. Boortz's fair tax book. The issues I had with holes in the "plan" were still there after reading the book.

The one huge positive I see is that it taxes the large underground economy.

Answer 3

The whole conservative plan on taxes is to eliminate progressive taxes and replace them with regressive ones. Eliminating the income tax and replacing it with sales tax is the best (or worst) example of this. It means that the richest people will pay almost no tax at all, while those struggling just to survive, the 'working poor' will pay a much bigger percentage of their income in taxes.

And in the great old tradition of giving Orwellian names to their programs--like 'Forests Forever' for a program to allow lumber companies to destroy ancient forests and replace them with monocultural tree farms, or 'The Clean Skies Initiative' to remove restrictions on polluting industries, or the 'No Child Left Behind' program to defund public schools, this is called 'The Fair Tax'.

If you made all your money in dividends and capital gains, you'd think it was MORE than fair. 8^) But if you are one of that unfortunate 98% of us who has to work at a job, you'd do better under the current system.

Answer 4

The more you spend the more you pay.

It also encourages people to save as they won;t be paying tax on money saved.

Answer 5

I think it's unfair .