Why not the Fair Tax?

[kyzr]

The "fair tax" is a spectacular plan.
It will never be enacted by Congress because Congress will never give up the carrot and stick power that regulating taxation gives them.
Leftists will never like it because it doesn't punish success.
Anyone center, right of center or just open minded that simply dismisses it hasn't spent any time understanding it.

Show me the math how much revenue the "value added" tax generates....
Hint: it needs to cover $7.3T in spending. So with a $7T GDP the new consumption tax rate would need to be close to 100%, or DOUBLE the price of everything. Total nonsense. No one would be able to afford anything.

 

[elektra]

Why not just one tax and not 100's of taxes

 

[DudleySmith]

Yes, but they already do, it’s now simply baked into the cost of the product they buy and hidden from them.

How so?

 

[DudleySmith]

Because corporations never really drop prices...that's never happened before I don't see it happening now. There's marketing to make you believe they have....but they really don't.

Same with cheap illegal alien labor; they never pass the cost savings to consumers, they still sell for whatever max the market will bear, and its not just housing it's meat packing, and every other industry they dominate the labor market in.

 

[Fort Fun Indiana]

If the income tax is zeroed out, your employer will cut your salary?

More likely will not increase your salary as much or at all the next year. And so on, as the labor market adjusts.

 

[Toddsterpatriot]

Wrong.
If the wealthy have a state tax number, then they pay no sales tax.

Post your evidence.

 

[Toddsterpatriot]

In 2001 I was getting ready to go to my son's award ceremony for high school awards. I had my good suit cleaned and ready. And I couldn't get my hair to lay down on the sides. I was running late and was pissed.

So on the way back to my ex's house after the ceremony, I stopped at a chain hair place and had the girl shave my head.

I haven't had hair or had a haircut since.

You killed it.

 

[Toddsterpatriot]

Yes, but they already do, it’s now simply baked into the cost of the product they buy and hidden from them. Under a fair tax, as in the case of the toaster in the OP, the net affect on the poor consumer is a 0% increase in the cost of the product.

One of my favorite things about the fair tax is, if the government blows the budget, and requires an increase in the tax, everyone feels it, and the politicians will face the wrath of the consumers rather quickly.

Under a fair tax, as in the case of the toaster in the OP, the net affect on the poor consumer is a 0% increase in the cost of the product.

Because it's magic!!!

 

[Toddsterpatriot]

The math is really bad. Right now, that toaster brings in $23 in taxes. You pay $23 in income tax. So the toaster brings in $46. Under that systems, the toaster only brings in $23.
And it does not take into account State income taxes.

I save $23 in taxes, prices all remain the same and the government collects the same revenue.

MAGIC!!!

 

[mikegriffith1]

In principle, it's a very good idea. Any fair tax law would need to categorically ban rebates on the tax, set the tax rate for five years, and require a 2/3 majority vote to raise it. Otherwise, Democrats would try to use the fair tax the same way they've tried to use the income tax and the corporate tax as a tool for buying votes.

 

[JohnDB]

What we need is a more fair "Federal Property tax"....

Because certain individuals only have loans based on stock ownership....they have no income per se....but they have stocks in the range of billions of dollars.

Of course we can have a retirement portfolio exclusion....for both the investment firms and individuals BUT any other stocks and bonds they own are subject to taxes.

Because we need to curb the influence of the "super wealthy " and this will do it.
Corporations like Blackrock, Prudential, and etc....they gain to much influence.

 

[Fort Fun Indiana]

I would only a entertain this idea, if the tax is progressive. Otherwise it's just a way to shift the tax burden down the wealth scale.

 

[Concerned American]

I haven't been to anyone to get my hair cut since 2001.

I went today.

 

[Billiejeens]

I save $23 in taxes, prices all remain the same and the government collects the same revenue.

MAGIC!!!

Just say that you don't understand it.

 

[ThisIsMe]

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.

How would they avoid sales tax? In the fair tax situation, there are literally no loopholes.

 

[ThisIsMe]

Doesn't really matter.

I'm just giving examples, rather than the the real math.

The simple fact is, if they got rid of income tax, the shortfall would be made up with sales tax, which would increase sales tax by so much, poor people wouldn't be able to afford anything.

Sales tax is a poor man's tax.

But again. Prebate would mean basic needs are met before you pay a penny in fair tax.

Also, the supposed boom in employment and raise in wages would help lift people out of poverty, wouldn’t it?

 

[ThisIsMe]

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.

Ok, again, if a rich person decided to try and skirt the sales tax by buying outside the U.S., then just let them know they will pay the purchasing country’s tax AND the 23% tax once he gets it to the U.S. That should make lefty’s extremely happy.

 

[ThisIsMe]

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.

Also

WRONG

What is it with you all and the overreacting? Why are you getting all bent out of shape? I just asked a question and you all are like…super hyper sensitive about it lol.
Calm down…

 

[ThisIsMe]

The federal government does not currently impose sales tax in used goods, so there would be no loss to them.

I generally like the fair tax, although I see flaws.

I would propose that the only paycheck deduction would be for social security and Medicare.

Well, my thoughts would be, I think maybe a hybrid of a flat tax combined with a fair tax would be better. Say, everyone pays a 10% flat tax on income, and then there’s a 13% fair tax for example…or something like that. Maybe?

 

[frigidweirdo]

But again. Prebate would mean basic needs are met before you pay a penny in fair tax.

Also, the supposed boom in employment and raise in wages would help lift people out of poverty, wouldn’t it?

The point was that this tax is supposed to be easy, and it's supposed to be FAIR.

You're saying you need a prebate because it's INHERENTLY NOT FAIR.

And I told you, there'd be no boom in employment.

A boom in employment would come when POOR PEOPLE have more money to spend.

You want a tax that makes poorer people MUCH POORER with less money to spend, so everyone will lose out.

We can look all around the world and see that societies with less money, have poor people buying less and the economy doing less well.