Fair Tax ?

Can the wise sages in Tuxedos here please explain to this rather simple person, the disadvantages to the currently popular "FairTax" initiative?

The proposal is supposedly dedicated to fully replacing the revenue generated under the current federal income tax system with a single rate, National Retail Sales Tax. Is that a bad thing? If so... why?

Giz

P.S. - Please excuse me if this topic has already been discussed.... besides being somewhat simple-minded.... I am occasionally, very lazy!

Here ya go.

http://useconomy.about.com/od/fiscal...p/Fair_Tax.htm

Btw, don't count on the Fair Tax becoming law during your life time.

Is that a bad thing?

I guess that depends on who you are. The current tax code is easily 10,000 pages long and if you pick pages at random, you'll find all sorts of oddities where exemptions are written as if one could apply them in a general way, but are so specific that it applies to exactly one situation.

First off...there ain't such a thing as a Fair Tax.

First off...there ain't such a thing as a Fair Tax. Originally Posted by WTF

.... and Second.... ?

.... and Second.... ? Originally Posted by MrGiz

Second off....people that make between 30-500k pay like 40% in total tax's (Fed, State, Local ) . Progressive, Regressive.

That is a pretty flat tax rate. I sure as hell would not call it fair.

Agreed! But..... There has to be an easier , less costly (IRS), fairer way than the klusterphuck now in place....right?

I am simply asking for the philosophical opposition to a consumption tax.... including breaks for (proven) poverty levels.

Why don't we just do away with taxes altogether? No government. Each person pays their own education, health care, infrastructure, electricity, water, sewer, etc. You get the idea.

Now that's fair, isn't it?

I don't mind paying my fair share of taxes. I, sure as Hell do now!! I may even wind up paying more in consumption taxes.... but hopefully, others would too!

It's great for me and for folks who make $250 or $500k and more. We'll save tons of money. For the average Joe who makes a regular wage, well you figure it out. If it cuts my taxes almost by half, who do you think will make up the difference?

It's just a scheme to get regular working people to tax themselves more and let rich people pay less.

Here is a link for you MrGiz. http://www.spike.com/video/fair-tax-debate-neal/2720387

It is pretty long, but has a lot of information that should be of interest to you. Over the years I have listened to Neil Boortz talk about the Fair Tax. He co authored the Fair Tax book and is debating in the video.

MR Giz..............''shifting the tax burden'' is what the tax should be called.

Reagan did that in the early eighties. You have seen the resulting disparity (read widening) in income gaps in the country since then. We are becoming close to Mexico in that regard. Some may even think that a good thing.

I can only say that having to pay 40% or more in taxes because of a large income is something that I would like to bitch about.

I can only say that having to pay 40% or more in taxes because of a large income is something that I would like to bitch about. Originally Posted by Marcus Aurelius

30 grand is not a large income.

If you add in all tax's, the poor pay (and I sure as hell do not consider 30k rich) about the same % as a person making 500k.

Is that fair? Depends on how one looks at life.

I do know that you can not get blood from a turnip.

I will say that it is not FAIR to talk about only one form of taxation (in this case Federal) when talking about this very complex subject.

It really doesn't matter what the tax structure, the middle class is going to have to foot the bill. They are the only ones who have enough volume to make a difference.

You can take away all the money of the super rich...and it ain't gonna matter jack to real dollars. It might shut WTF up (and that does have some intrinsic value. ), but it won't change the tax rate on the middle class.

Sales taxes are certainly regressive. And the wealthier you are, the more you should foot the bill (as a percentage). But the tax code...whatever the method...has to pay lip service to the concept that we all have the ability to become super rich and it is worthwhile once we do so. The concept that everyone should pay income tax, should also be paid some lip service...and I don't think our tax code does that.

Part of any of this, is presentation. In the end, the middle class is still going to foot the bill, but the presentation could be a LOT better.