Flat Tax vs Fair Tax

[akelch]

We all agree the tax system is broke. The question is how do we fix it or do we replace it with something else?

Do you support a Flat Tax or the Fair Tax plans and why?

 

[editec]

No, I do not support a flat tax.

It's a simple solution to a complex problem that will not work.

As to a Fair tax?


Describe it first, and then perhaps we can comment on it.

 

[akelch]

The Fair Tax replaces income tax, social Security tax, capital gains tax, Medicare tax and replaces it with a consumption tax at the point if sale.

So no more filing of taxes, you keep all the money you earn, businesses produce and export with no taxes attached (help compete in the global market.) This will also help keep jobs in US. Everyone pays it including the illegal workers, underground economy (drug deals, etc.) and foreign visitors. Very hard to avoid but easier to regulate.

Most of all it is a level playing field. Politicians can not play favorites. If you raise the tax you raise it on everyone.

The bill in on Capital Hill and it is only 33 pages long compare that to 77,000 pages of the income tax.

 

[Scorpion]

Fair tax,but too many people favor the status quo and change scares the crap out of them.
And the elites wouldn't be in favor of anything that would eliminate their power to manipulate the masses.

 

[akelch]

True ...but I don't care what they want. If the people want it bad enough then it will happen.

 

[Scorpion]

The other consideration is how are local and state revenues met for expenses?
How do you transition to all fair?

 

[RDD_1210]

How will our massively bloated military budget be sustained with a "Fair Tax"?

 

[akelch]

The fair tax only affects federal taxes. State tax and local taxes will stay the same.

 

[akelch]

The fair tax is designed to be revenue neutral. The government will get the same amount of money.

 

[editec]

How about this?

FLAT SOCIAL SECUITY taxation.

Do you want that?

Of course you don't. Your masters would have to pay at the same rate as working people do.

Hypocrital liberatarian ALERT.

 

[akelch]

How about this?

FLAT SOCIAL SECUITY taxation.

Do you want that?

Of course you don't. Your masters would have to pay at the same rate as working people do.

Hypocrital liberatarian ALERT.

Corporations pay no taxes. They collect them.

 

[Two Thumbs]

Fair tax would work out best.

I get to keep what I earn and the rich pony up every time they buy overly expensive items.

But then liberals would have nothing to fear monger or divide us with, so it's a non-starter.

 

[akelch]

Fair tax would work out best.

I get to keep what I earn and the rich pony up every time they buy overly expensive items.

But then liberals would have nothing to fear monger or divide us with, so it's a non-starter.

Who cares. If the people want it, it will happen.

 

[akelch]

So far no takers for the flat tax.

 

[Wry Catcher]

The fair tax is regressive and will make the rich richer. It will have a negative impact on the middle class and working poor and is the final step necessary to transform our nation into a Plutocracy.

Think for a moment about percentages. What percentage of income does a millionaire spend on products (and services?) and what percentage does a middle class family spend. An individual or a family can only buy so many things. I hope that's clear.

 

[RDD_1210]

The fair tax is regressive and will make the rich richer. It will have a negative impact on the middle class and working poor and is the final step necessary to transform our nation into a Plutocracy.

Think for a moment about percentages. What percentage of income does a millionaire spend on products (and services?) and what percentage does a middle class family spend. An individual or a family can only buy so many things. I hope that's clear.

LOL, you know it's not clear to them. Why else would they continue to advocate for it?

I'll tell you why.....because it's simple. No more, no less. Simple solutions for simple minds.

 

[Skull Pilot]

So far no takers for the flat tax.

I prefer a flat tax.

Less moving parts more simplicity and less cost to oversee.

A 10% flat tax on the first dollar of income regardless of its source would bring in more money than our current income tax and cost billions less to enforce. We could use the savings to offset debt or to shore up safety nets.

As for Social Security I say leave the contributions as they are but let people own their own accounts. People would retire with more money and we could cut administration costs thereby increasing net revenue which then could be used to lower the income tax even more.

The fair tax with it's "prebates" and other calculations is cumbersome.

 

[RDD_1210]

So far no takers for the flat tax.

I prefer a flat tax.

Less moving parts more simplicity and less cost to oversee.

A 10% flat tax on the first dollar of income regardless of its source would bring in more money than our current income tax and cost billions less to enforce. We could use the savings to offset debt or to shore up safety nets.

As for Social Security I say leave the contributions as they are but let people own their own accounts. People would retire with more money and we could cut administration costs thereby increasing net revenue which then could be used to lower the income tax even more.

The fair tax with it's "prebates" and other calculations is cumbersome.

Right on time....just strengthens what I just said. These ideas are liked because they are simple. Not because they are effective or productive.

 

[akelch]

The fair tax is regressive and will make the rich richer. It will have a negative impact on the middle class and working poor and is the final step necessary to transform our nation into a Plutocracy.

Think for a moment about percentages. What percentage of income does a millionaire spend on products (and services?) and what percentage does a middle class family spend. An individual or a family can only buy so many things. I hope that's clear.

I'm glad you brought this up...and I would agree with you if it were true. But the Fair Tax has a prebate system built in. This is how it works...every house hold (depending on the size) will get a check from the government each month for the same amount. A house hold of 4 will get around $500. This will off set some of the cost of the taxes that month. $500 for a poor family is a lot but $500 for a millionaire is pocket change. So in the long run the rich will pay more of the tax then the poor.

If you spend your money wisely you could be paying very little if any taxes.

 

[Skull Pilot]

So far no takers for the flat tax.

I prefer a flat tax.

Less moving parts more simplicity and less cost to oversee.

A 10% flat tax on the first dollar of income regardless of its source would bring in more money than our current income tax and cost billions less to enforce. We could use the savings to offset debt or to shore up safety nets.

As for Social Security I say leave the contributions as they are but let people own their own accounts. People would retire with more money and we could cut administration costs thereby increasing net revenue which then could be used to lower the income tax even more.

The fair tax with it's "prebates" and other calculations is cumbersome.

Right on time....just strengthens what I just said. These ideas are liked because they are simple. Not because they are effective or productive.

It would be effective because revenue would increase.

I don't see how one can argue otherwise after all isn't it the purpose of taxes to raise revenue?

Why do you assume simplicity would not be effective? Our current bloated unfathomable complicated system doesn't seem to work very well does it?