Why not the Fair Tax?

[Rigby5]

It is the most researched and analysis driven plan out there.
Any reasonably intelligent person who is against it, doesn't understand it.

Wrong.
It makes no sense at all.
The main source of wealth is not from the production and sales of good, so will not be taxed.
Like investments in production in China, like iPhones won't be taxed if they are sold outside the US.

Yet things currently not taxed and essential to poor people like buying a home, would suddenly be unaffordable due to the new federal sales tax.

 

[elektra]

Wrong.
If you make $10 an hour, and work a 40 hour week, your gross pay is $400, but you pay 0% in taxes because you are under the poverty level.

wrong, all housing is taxed, so they would still pay a tax

In this case, 13% of your take home will go to property tax if you live in Connecticut.
Then there is a property tax on your vehicle. Fire department taxes. Fees and taxes on electricity. Recycling taxes and fees.

I am pretty sure you are only speaking of federal tax, but there are many more taxes than the income tax

 

[Rigby5]

If you make 10 million per year, I’d say your yearly expenses would be more than 200,000. Remember, how much of that 10 million per year is being shielded from taxes based on loopholes, deductions..etc. The left complains that Buffet only pays a 17% tax on his “income”…so, in that case, he’s cheating the government out on taxes, right?

In the case of your guy who makes 10 million, it doesn’t matter that he makes 10 million, every time he pays a bill, 23%, lets say he has an eye on that new $300,000 Ferrari..that’s $70,000 in taxes paid…or how about that 500 million dollar yacht that bezos just bought…that’s 115 million in taxes paid on it.

I’m not saying it’s perfect because I don’t know, but..it seems like this would create a tax that cant be shielded by offshore bank accounts or loopholes in the tax code, right?

WRONG!
If a wealthy person wants a Ferrari, yacht, or airplane, he can afford to travel outside the US to buy it or buy one that needs lots of work that he could pay to have done and avoid the sales tax.
Sales tax always hit the poor people the most, since they can not afford the scams to bypass the sales tax like the wealthy can.

 

[Billiejeens]

Wrong.
It makes no sense at all.
The main source of wealth is not from the production and sales of good, so will not be taxed.
Like investments in production in China, like iPhones won't be taxed if they are sold outside the US.

Yet things currently not taxed and essential to poor people like buying a home, would suddenly be unaffordable due to the new federal sales tax.

Like I said.....

 

[Concerned American]

No federal, state, or local taxes. No property tax. No vehicle or gas taxes. No fees collected for government services. No government recycling fees.

If that is what the fair tax was, I would agree. But it isn't and never will be.

 

[Rigby5]

wrong, all housing is taxed, so they would still pay a tax

In this case, 13% of your take home will go to property tax if you live in Connecticut.
Then there is a property tax on your vehicle. Fire department taxes. Fees and taxes on electricity. Recycling taxes and fees.

I am pretty sure you are only speaking of federal tax, but there are many more taxes than the income tax

Wrong.
The property tax is state level and has nothing to do with this proposed federal sales tax.

And the property tax of Connecticut is not 13% like you claim.
{...
Average Effective Property Tax Rate: Connecticut’s average effective property tax rate is 2.15%, which is higher than the national average of 0.99%.
...}

And no, there is no "property tax on your vehicle".
There is an annual registration fee, but that is based on a flat cost of doing paperwork.

I was referring to why income tax was good, in that it is progressive, so poor people pay 0.
All taxes should be progressive and poor people should pay 0.
The idea of a federal sales tax poor people would have to pay, is horrendous.

 

[elektra]

Wrong.
The property tax is state level and has nothing to do with this proposed federal sales tax.

I made it clear I was talking about tax in general and not the federal tax

 

[Concerned American]

98wrong, all housing is taxed, so they would still pay a tax

Choto Matte. In your post #98, you said no one would pay property tax. This is not the first contradiction that I've seen in this thread. That is why a "fair tax" will fail.

 

[elektra]

And the property tax of Connecticut is not 13% like you claim..

I did not state that property tax in Connecticut is 13%, I stated a person in connecticut with an income of $10 a hour would pay 13% of their pay in property tax

 

[elektra]

Choto Matte. In your post #98, you said no one would pay property tax. This is not the first contradiction that I've seen in this thread. That is why a "fair tax" will fail.

contradiction?
I stated that the only fair tax is one tax, eliminate all other taxes, fees, or any possible way the government sneaks in a way to collect money.

 

[elektra]

And no, there is no "property tax on your vehicle".
There is an annual registration fee, but that is based on a flat cost of doing paperwork.

There is a annual property tax in addition to annual registration fees on vehicles in more states than connecticut

Which U.S. States Charge Property Taxes for Cars?

Connecticut, Virginia, Mississippi and Rhode Island are among the states that levy taxes on vehicles

www.mansionglobal.com

Q. I'm a new resident to Connecticut and I hear that I have to pay property taxes on my vehicles. Is this the only state that requires that?

A. Connecticut is not the only state that requires residents to pay property taxes on vehicles, but it may come as a surprise to someone moving from a neighboring state—such as New York—that does not have such a levy.


In Connecticut, the tax is collected by towns and cities, according to the State of Connecticut Department of Motor Vehicles. Taxes are charged whether or not the vehicle is registered

 

[Concerned American]

It is the only way the citizens will wake up to the biggest expense in our life, the governments and government agencies.

Au contraire, citizens wake up when anything comes out of their paycheck and Americans are aware of exactly what comes out of their check weekly, monthly but at the end of the year, politicians have figured out that you aren't as cognizant of the thousands of dollar that you've spent because --- you got so much back. It would be the same if you paid it up front --- just like sales tax is now --- the public would absorb it. They know this and as long as we bicker about whether Trump farts in court or not, it won't get any better.

 

[Concerned American]

contradiction?
I stated that the only fair tax is one tax, eliminate all other taxes, fees, or any possible way the government sneaks in a way to collect money.

In the post I replied to, #102, you stated, "wrong, all housing is taxed, so they would still pay a tax" In #98 there would be no property tax. Property tax is a housing tax.

 

[Dragonlady]

Here are some, but I am not personally familiar, just what wiki says.

{...
Top 7 Countries with Zero Income Tax

• 1. Bermuda Famous for its pink-sand beaches and turquoise waters, Bermuda also holds the distinction of having no value-added tax (VAT), sales tax, or value-added tax. The government, instead, derives its revenue from customs duties, payroll taxes, and other indirect taxes.
• 2. Monaco ...
• 3. Cayman Islands ...
• 4. Bahamas ...
• 5. United Arab Emirates (UAE) ...
• 6. Qatar ...
• 7. Oman ...

...}

That's not what you said. You said that lots of nations are cancelling all taxes and going with this VAT plan the OP proposes.

The ME countries are living on their government owned oil revenues. The rest are small island countries and known tax havens.

Do you have any large population diverse economies, using such schemes????

 

[Billiejeens]

Wrong.
The property tax is state level and has nothing to do with this proposed federal sales tax.

And the property tax of Connecticut is not 13% like you claim.
{...
Average Effective Property Tax Rate: Connecticut’s average effective property tax rate is 2.15%, which is higher than the national average of 0.99%.
...}

And no, there is no "property tax on your vehicle".
There is an annual registration fee, but that is based on a flat cost of doing paperwork.

I was referring to why income tax was good, in that it is progressive, so poor people pay 0.
All taxes should be progressive and poor people should pay 0.
The idea of a federal sales tax poor people would have to pay, is horrendous.

Left wingers will never like it.
It doesn't punish success.

 

[WinterBorn]

Wrong.
If you make $10 an hour, and work a 40 hour week, your gross pay is $400, but you pay 0% in taxes because you are under the poverty level.

But with the "fair tax", if you have a large family that needs clothing, shoes, haircuts, medical treatment, etc., you would be paying 23% on those items that were not currently taxed.

And the wealthy can easily find other ways to avoid the sales tax.

Not being taxed? When I buy clothing and shoes I pay tax. When I used to go to the barber I paid tax.

 

[elektra]

In the post I replied to, #102, you stated, "wrong, all housing is taxed, so they would still pay a tax" In #98 there would be no property tax. Property tax is a housing tax.

I think only one tax is the only fair way to tax. Nothing else by any government or agency. The governments and all their agencies should be forced to only tax a dollar when it is spent. Not when it is earned.

Spend a buck, get taxed once. Stop the government theft.

 

[Billiejeens]

Almost every poster here, pro and con knows nothing about how the fair tax actually would work.

 

[22lcidw]

Like what? I never paid any sales taxes on materials I used to make my products which were in turn sold to wholesalers.

At every level there is a built-in tax somewhere or somehow. However, I will not say 100% of everything ecause that I wouldnot know.

 

[elektra]

Au contraire, citizens wake up when anything comes out of their paycheck and Americans are aware of exactly what comes out of their check weekly, monthly but at the end of the year, politicians have figured out that you aren't as cognizant of the thousands of dollar that you've spent because --- you got so much back. It would be the same if you paid it up front --- just like sales tax is now --- the public would absorb it. They know this and as long as we bicker about whether Trump farts in court or not, it won't get any better.

I think the idiocy we see in the users posts and comments throughout usmb, show that a lot of people never think about what comes out of their paychecks