FairTax in Ways and Means committee...

Discussion in 'Economy' started by insein, Sep 14, 2005.

  1. insein
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    insein Senior Member

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    I had an interesting evening tonight. I went to a market research study based on "voting" as the general category. So i assumed politics was on the bill and went there as the young conservative. Eventually it was discovered that we were to discuss the Fairtax. For those unaware of what the fairtax is heres a quick link to give you the run down.

    http://www.fairtax.org/

    Heres a list of the cosponsors along with John Linder (R) of GA.

    http://thomas.loc.gov/cgi-bin/bdquery/z?d108:HR00025:@@@P

    With those in bold i think i can trust it.

    At first the way it was presented had me skeptical. I see the benefits if the new system is implemented properly. Im just worried about it being a bigger scam because the government never truly does with less money. Also my one big worry is the proposal is that a poverty line is drawn. Everyone receives 23% of that poverty line in the form of a rebate. So say the poverty line is $18000. Whether you make $500,000 or $10,000, you still get a rebate of $4140. I see this as a big welfare check to those that have no incentive to get a job. But on the whole it seems like a good idea. It cuts the fat out of the tax code which is ridiculous right now and makes it simply "fair" for everyone.

    According to the presenter, it ill will be presented to congress within the next 2 to 3 months. So be on the lookout. It was an interesting evening to say the least.
     
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  2. ScreamingEagle
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    ScreamingEagle Gold Member

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    So am I....kept wondering why there is all this sudden fanfare to change over to a "Fair Tax" system...then it hit me when you said that...

    It's not really about smoothing out the current system. They've let us put up with the IRS hassles for years. It's not really about poverty lines or levels nor about business creation either. It's not even about being "fair" to the public...in fact, you could say it's just the opposite! What it's really all about is "their" (government) money or should I say their potential lack of it. Same old story folks....follow the money.

    Why are some in Congress so eager to suddenly lay a whopping 23% sales tax on top of us? You can bet it is for the money. I now suspect that it is being pushed in order to prevent a slump in tax receipts that they see coming in the future years from business slowdowns. With all the outsourcing of labor and materials and with more business moving overseas there is less and less tax income from the business world. What better way to prevent a backslide in total taxes than to replace those losses into the form of a hefty tax on the people instead? And then call it a "Fair Tax" to make it marketable.

    If we just let the system remain the same, the cost of things we buy should be going down because it costs less and less to make them so therefore we should be paying less and less for them...and therefore less taxes on them as well. Some think we are entering a financial period of deflation due to excess capacity. However, with the incredibly high 23% Fair Tax on every purchase, our costs will not go down as they should.

    "Fair" Tax be :banned:
     
  3. Annie
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    Annie Diamond Member

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    Well if you are above 50k or so, you will pay much less. Then there are us others...
     
  4. Mr. P
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    Mr. P Senior Member

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    Under 50k? There are no brackets in the fair tax. Your tax will be payed according to how much you buy.
     
  5. Annie
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    Annie Diamond Member

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    Yep, 100%. Unfortunately there are those of us that are in the 'working poor' with no 'extra income'. I cannot 'put aside' monies for 401k or anything like that. It takes all of my check to survive-you are right, no brackets.

    On the other hand. If my needs are met by an income of 50k, I'll be taxed on that. The rest is mine to save, without tax. Very good deal, if I make well over 50k.
     
  6. Mr. P
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    Mr. P Senior Member

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    Check the link in the first post K..Your take home will increase..you'll be better off..
     
  7. ScreamingEagle
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    ScreamingEagle Gold Member

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    How can you say better off if goods continue to cost less and less? A person paying taxes the regular way will be able to buy more goods with their dollar. Less, if they pay almost a 25% premium for them.

    As Kathianne indicates, there is a break even point. By placing the tax on the consumption end, there is the potential for more tax. By keeping the tax on the income end, there is the potential for buying more goods - even by those with less income (unless taxes were increased).
     
  8. Mr. P
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    Mr. P Senior Member

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    Taxes can always be increased..The Fair Tax gives YOU control over how MUCH tax you pay vs an income tax..

    You both should look into this a bit more..I think. You're paying more than 30% now.
     
  9. Annie
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    Annie Diamond Member

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    No, I won't. I've been in contact with one of the originators of this, from U of Chicago. There are very serious people pushing for this. Serious in the way of thinking it's a good alternative, and serious in credentials to be heard.

    I've argued with this friend, whom I've also gotten blottoed with, that there are real problems for those of us that are working, some at 'essential' positions, that cannot make ends meet now. This will throw us into poverty, because there are no provision for exemptions.
     
  10. Nuc
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    Nuc Senior Member

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    Sales tax based schemes discriminate against young people. New families need to buy cars, furniture, appliances and so on. Old people already have that stuff.
     

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