what are the chances that the "fair tax" will be implemented in the U.S.?

Question

swg: look up Fair Tax. I'm not saying taxes are unfair.,

Answer 1

Less than zero. Ever wonder why it has languished in committee for over a decade now? It's purely a political football, nothing more. The few proponents use it for their personal political gain, nothing more. They go back to their constituents and say, "I'm TRYING to do something but NOBODY is interested!" And of course they get re-elected.

The wealthy would LOVE for it to become law, at least initially. They only spend a tiny fraction of their wealth unlike the poor and middle class. The wealthy would get a MAJOR tax break from it. The problem is, when you give one group a break, you either have to cut services OR transfer the burden to another group. That leaves the poor and middle class to pick up the slack. The fact that most of the backers of the so-called "Fair Tax" are hideously wealthy SHOULD tell you something!

Do you REALLY want to pay a 30% sales tax on top of the state taxes you already pay? Let's say that you buy a $200,000 new home -- fairly modest in many parts of the country today. Are you REALLY prepared to pay an additional $60,000 in TAXES on top of the purchase price? And pay that tax over the next 30 years as part of your mortgage, thereby doubling the tax as well? Or how about buying a $20,000 new car and paying an EXTRA $6,000 just to get the tags for it? Of course you wouldn't! Nobody would! As a result, the auto industry and the construction industry would COLLAPSE overnight since only new cars and homes would be subject to the tax. What's really FAIR about that?

Answer 2

The fair tax has about a snowballs chance in hell of every coming to light, and even if your not rich, you'll be glad that it will never come to light either. One congressman proposed a flat sales tax of 23% can you imagine going from an average of around 7.5% to 23%? insane. Sure you would keep all of your money but can you imagine paying 23 cents for every dollar you spend? (.23 on a 1.00, 23.00 on 100.00, 230.00 on 1000.00 etc) What happens in a market downturn? What happens when the economy slows down, people stop spending as much money not only will the economy suffer but our government services as well if the governments budget is contingent upon the strength of the economy. By the income tax they have a guaranteed budget every year, and our economy has plenty to spend. Income tax is here to stay. Now do they need an overhaul? thats a different story. I hope I answered your question. :)

Answer 3

Good if more Americans take the time to learn what the fair tax is and how it works. People need to write their congressmen and ask them to support it. Without a strong push from the public, it will never be implemented.

For those who are confused on what the fair tax is (from http://www.fairtax.org/site/PageServer)

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

Answer 4

It depends what your definition of "fair" is.

You are probably under the impression that the wealthy don't pay their share.

The top tax bracket is 36%. Imagine 36%.

Remember, its the guys with money who create the jobs.

If a business owner pays a lower tax, he can buy that machine... he has to hire a guy to run that machine...because the machine operator has a job, he's going to buy a new car... the economy is working.

Stop whining, and become one of those guys.

Answer 5

Probably not. It is too easy now for politicians to just keep adding little hidden taxes than raising the one and only tax.

Answer 6

Approximately zero. And contrary to what some people think, it isn't the rich that would benefit from that one - they'd make out very well, the poor and middle class would be hit hard, even with the "prebate".

Answer 7

No way. The rich can dig into their pockets and pay lobbyists to keep that one down. The rich rule in this capitalistic society. All the rest are kept under their thumbs.

Answer 8

Somewhat less than .001%. The 'fair tax' has far too many problems to be taken as a serious alternative to our current system of taxation. Don't hold your breath waiting for it to happen.

Answer 9

Republicans like it, you might not, cuz a billionaire would pay the same as you. That's why republicans call it the "fair" tax.

Answer 10

None, too much opposition in Congress and special interests groups.