Why not the Fair Tax?

[ThisIsMe]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

 

[Toddsterpatriot]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

If prices don't increase and I get to keep all my income, how does the government raise any revenue?

So, what is wrong with this plan? Where does it fail?

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before.

The math.

 

[ThisIsMe]

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

If prices don't increase and I get to keep all my income, how does the government raise any revenue?

So, what is wrong with this plan? Where does it fail?

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before.

The math.

If prices don't increase and I get to keep all my income, how does the government raise any revenue?

23% of every purchase goes to the government, and everyone will be paying. That’s how they raise revenue.

The videos explain all of it.

The math.

What’s wrong with the math?

 

[Toddsterpatriot]

23% of every purchase goes to the government, and everyone will be paying. That’s how they raise revenue.

The videos explain all of it.



What’s wrong with the math?

23% of every purchase goes to the government, and everyone will be paying. That’s how they raise revenue.

Right.
The government takes out the $23 in taxes currently in the toaster and then adds it back in.

What’s wrong with the math?

I used to pay income tax and $23 in toaster tax. Now I pay no income tax and $23 in toaster tax.

 

[Concerned American]

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

Then there is no reason to change.

 

[Rigby5]

23% of every purchase goes to the government, and everyone will be paying. That’s how they raise revenue.

Right.
The government takes out the $23 in taxes currently in the toaster and then adds it back in.

What’s wrong with the math?

I used to pay income tax and $23 in toaster tax. Now I pay no income tax and $23 in toaster tax.

The plan is no good because the wealthy do not just sell products that can have a tax added.
But you have this wrong.
Now you pay $23 in income tax on the wages you buy a toaster with, and the change is to eliminate income tax entirely and only pay a $23 sales tax when you buy the toaster.

 

[Rigby5]

Then there is no reason to change.

The plan is no good for other reasons, but it does greatly simplify taxes, and many countries do this instead of the complex progressive income tax we have.

 

[Rigby5]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

The reason this does not work is that you don't want to just tax purchases.
Large families need to purchase more stuff than single people.
And the wealthy do not just invest their money in producting commercial products.
They also invest in stocks, overseas ventures, etc., that these sales tax would no longer touch.

 

[DudleySmith]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

Read the Bills themselves. They're a joke. They raise taxes on lower incomes and let the upper classes off free.

Why should my new refrigerator be taxed 25% while Warren Buffet's stock purchases and dividends are tax free? It's a ridiculous scam. People who have to spend all of their incomes to survive are punished while a few parasites pay essentially nothing.

 

[rampart]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

 

[Muhammed]

A new federal retail tax?

No!

Fuck you!

 

[DudleySmith]

23% of every purchase goes to the government, and everyone will be paying. That’s how they raise revenue.

The videos explain all of it.



What’s wrong with the math?

Read the Bills. Fuck Spoortz and his idiot con game. lol he leaves out a lot.

 

[DudleySmith]

A new federal retail tax?

No!

Fuck you!

None of the states will have to stop their own sales taxes. So yes, piling another one on top is ridiculous.

 

[WinterBorn]

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

If prices don't increase and I get to keep all my income, how does the government raise any revenue?

So, what is wrong with this plan? Where does it fail?

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before.

The math.

Yes, they are still paying $100 for the toaster. But they receive all of the gross salary. So they bring more money home.

If you make $10 an hour, and work a 40 hour week, your gross pay is $400.
Under the current clusterfuck of a tax system, you will likely pay 25% in taxes, So you bring home $300 a week.
Under the Fair Tax, you would receive $400. And your taxes would be paid with a consumption tax on what you spend.

Also, the taxes are accessed on all new goods and services. So buying a used car is exempt.

 

[Lisa558]

It’s an excellent idea.

- The government gets its 23%

- No consumption tax on basics, provided in the form of a probate.

- Americans aren’t double-paying taxes (the imbedded 23% in the price of the toaster PLUS income taxes)

- We can abolish the IRS and cut the cost of government operations

(There will be a big lobby from financial consultants, tax attorneys, and accountants to block it, though.)

 

[Libby von H]

Otherwise known as a consumption tax.

From the Neal Boortz radio show, this is broken down into 5 parts but each part is pretty short:

Part 1:



Part 2:



Part 3:



Part 4:



Part 5:



And here’s another talk he had on it that gives more context:

Neal Boortz FAIRtax vs Republican Tax Plan

So, the key points are:

Eliminates all federal taxation from your check.

You get to keep 100% of your earnings (state taxes are addressed in the presentation as well)

Eliminates all corporate taxes, which will create an economic boom as companies all over the world will want to move their headquarters to America to take advantage of being able to operate tax free.

There is no longer a need to file taxes, so there is no longer a need for an IRS.

Not a single penny of the fair tax is paid until your very basic needs are met (housing, food, etc), this is done in the form of a prebate that the government sends you at the beginning of each month.

How it’s done:

A 20 million dollar study was done on the fair tax, and the result was, they found out that, depending on the product, from start to finish, the entire process from raw material to finished product, there is between 18% and 25% in taxes paid from manufacturers and suppliers that adds to the cost of the product.

The proposal is tax neutral, which means the consumer will pay no more for a product than they did before.

The idea is to eliminate those taxes, which will lower the cost of goods and services, but charge a 23% sales tax on everything you buy.

Here’s how it works:

The example given was a $100 toaster. They estimate the taxes paid in the process of manufacturing that toaster was 23%, or, $23 out of $100. So, if you take those taxes out of the process, the taxes that the makers would have to pay in the process of making that toaster, it would lower the cost of the toaster to $77. At the point of sale, a $23 tax is charged for that toaster.

$77 goes to the retailer and $23 goes to the government. The retailer gets paid, and the customer is still paying $100 for that toaster…the same as they did before. All of this is from you being able to keep 100% of your income, and getting a prebate so all your basic needs are paid for.

*****
My comments are…YOU could control the amount of tax you pay dependent on how much you buy/consume, those who buy more expensive things (rich people) pay more in taxes.

So, what is wrong with this plan? Where does it fail? Seems like a solid idea to me…thoughts?

THIS IS THE WRONG APPROACH, AT LEAST INITIALLY

WE are now spending trillions that we don't have., They spend and then turn around to fund it by taxes.
A more even-handed mass execution is not really progress. We need to CUT CUT CUT the galactic waste

So I pick at random

An Associated Press analysis found that fraudsters potentially stole more than $280 billion in COVID-19 relief funding; another $123 billion was wasted or misspent.

 

[Lisa558]

THIS IS THE WRONG APPROACH, AT LEAST INITIALLY

WE are now spending trillions that we don't have., They spend and then turn around to fund it by taxes.
A more even-handed mass execution is not really progress. We need to CUT CUT CUT the galactic waste

So I pick at random

An Associated Press analysis found that fraudsters potentially stole more than $280 billion in COVID-19 relief funding; another $123 billion was wasted or misspent.

That “no rent” policy was also abused. I know renters who never lost their jobs or saw their income reduced - and didn’t have to pay rent for almost two years.

Of course, I live in a liberal county that loves to find excuses to hand out federal money.

 

[Resnic]

While it sounds good in theory I'll just make this real simple. I don't want anything changed in taxes when it's being changed by the current administration. It will not be in middle america and downwards best interest and in the end will just prove to hurt the majority of Americans.

And in our current climate companies will still gouge Americans to keep their quarterly profits up. Anytime a company takes a financial loss, even if they are still making the amount of money then they lose stock holders and their investors back out.

The whole game is so bloated now that the only way to introduce something now is to crash the entire system and rebuild it. And even that won't work because everyone running the game only cares about money at any cost.

There is no magic bullet because the people in charge care little for the American people or what's best for America.

 

[kyzr]

The OP conflates the "Fair Tax" typically referring to a "Flat Tax" across all income levels with a "Value Added Tax".

We buy a toaster every 10-years or so, a car every 7 or 8 years, one or two houses, the OP has no clue how the math doesn't work.

The US 2024 Federal Budget is $7.3T and current income is about $5T, so show us how the OP's proposal covers $7.3T.

 

[WinterBorn]

It’s an excellent idea.

- The government gets its 23%

- No consumption tax on basics, provided in the form of a probate.

- Americans aren’t double-paying taxes (the imbedded 23% in the price of the toaster PLUS income taxes)

- We can abolish the IRS and cut the cost of government operations

(There will be a big lobby from financial consultants, tax attorneys, and accountants to block it, though.)

Yes, there will be a serious fight from those who profit from our convoluted tax code.

Trivia Fact: In the US, we spend $500 billion and 6.5 billion hours complying with tax code. Not paying taxes, mind you.