Fair Tax?

[XDConvert9mm]

Originally Posted by winnet22

I want to laugh when I read “I’m not for the FairTax because it doesn’t reduce government spending.” Does our current tax system reduce government spending? NO! The only way a “Tax System” will have any affect on government spending is it transparency. The FairTax is the only system with total transparency.

How does it have total transparency where Govt. spending is concerned?

[tARfoo]

Originally Posted by Reno82

From what I understand NO deduction of any kind. Everybody pays a same tax rate. What if you don't pay at all? My opinion would be that there still would be a sales tax in local regions. No federal income tax. 23% is high for us poor people... rich people would pay less. It seems its all about lowering taxes for the rich and saying to others it's fair for all. But as stated 23% across the board would lower the rate for the rich and higher for the poor and middle class. Just my opinion.

It depends on how you look at it with regards to who is being "rewarded" with a fair tax. If you found yourself suddenly making $500K+/year, would you think it fair under the current system to giving back almost half of your income to taxes? And as far as the rich not paying as much, it's really the rich who abuse the sh!t out of loopholes, so in the end, with less and less places to "hide" their income, they would probably actually pay MORE out in taxes.

As far as those who currently don't pay at all, there would likely be some breaks on certain food items and other necessities, but I'm certainly not going to give those living in poverty any more incentive to stay there, like our current welfare programs have been doing for literally generations.

[winnet22]

Originally Posted by XDConvert9mm

How does it have total transparency where Govt. spending is concerned?

You will see the cost of government on every sales slip. If you pay $100 for an item your sales slip will show a federal tax of $23. That is pretty transparent

[doctor_ew]

Originally Posted by winnet22

I want to laugh when I read “I’m not for the FairTax because it doesn’t reduce government spending.” Does our current tax system reduce government spending? NO! The only way a “Tax System” will have any affect on government spending is it transparency. The FairTax is the only system with total transparency.

Shutting down the IRS and replacing it with nothing would also create a lot of transparency.

[ArmyGuy45]

I wasnt said in the video but I thought I remember hearing that the Fair Tax doesnt tax on the necessities to survive. I.E. Groceries and Water.

[sneedb82]

I've been pushing for the Fair Tax since I heard about it on Boortz. I'm an Accountant, and I'm 100% for this type of legislation.

Decreased compliance costs, reduced number of "recipients" of the EITC that would receive a legitimate hand UP, not a hand out, and not be able to cheat the system.

Reduction in corporate tax liability and cost reduction in end products

[winnet22]

Originally Posted by doctor_ew

Shutting down the IRS and replacing it with nothing would also create a lot of transparency.

What does shutting done the IRS have to do with transparency. Transparency is knowing how much of your hard earned money is going to the government. Under our current system with all its embedded taxes, you have no idea. With the FairTax you will see the cost of government on every sales slip. Even my 7-year old granddaughter will know how expensive our government is.

[Dutchman3]

This transparency claim isn't all the Fairtax advocates claim. How is the federal tax amount so transparent when 15% of the needed federal revenue is hidden in either higher State and Local taxes (lots higher) or reduced State and Local services? The Fairtax scheme to have the federal government tax all State and Local consumption is inappropriate, if not unconstitutional, under our republican form of government. However, if the Courts do uphold this feature, how are State and Local governments going to pay the tax without either raising tax rates or reducing services? Could a seven year old daughter really provide an answer?

I would also point out that the Fairtax sales receipt doesn't begin to tell anyone just how much tax one pays over a year, whereas with the income tax and payroll contribution, I can at least determine my federal tax burden once a year by reading my tax return. Who among you would be anal enough to keep boxes of sales receipts in order to see how much sales tax was paid? I don't think so! And, nowhere on that Fairtax sales receipt does it show what sales tax rate (30%) was added by the retail business to costs plus profit.

Should HR25 ever be taken up by the House Ways and Means Revenue subcommittee (unlikely), the first thing to go would be the proposal to express sales taxes in inclusive terms, followed by the insane proposal to create a $600 billion annual cash grant entitlement called a "prebate". Entitlements are already squeezing out discretionary spending, including Defense discretionary, and the last thing we need is another huge entitlement program! Raising the rate 4% in order to give Bill Gates a monthly welfare check makes no sense. Where is it written that no one should pay a sales tax on basic necessities? You want to protect the poor from this regressive sales tax, either target the prebate or simply retain the EITC at one tenth of the prebate annual cost.

[ArmyGuy45]

I wast wrong.. there is tax on the necessities but there is a prebate if you qualify.

"The prebate makes the FairTax progressive.
To ensure no American pays tax on necessities, the FairTax Plan provides a prepaid, monthly rebate (prebate) for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax? "
Americans For Fair Taxation: Thumbnail Sketch of the FairTax

[XDConvert9mm]

Originally Posted by winnet22

You will see the cost of government on every sales slip. If you pay $100 for an item your sales slip will show a federal tax of $23. That is pretty transparent

That only accounts for the Revenue side. As has been pointed out, this is 23% of the total after a 30% tax has been added on. Semantic games here.

The consumer will see how much is going to the Govt. on their sales receipt, sure. What they will not see line itemed out is that this same tax is levied at every level of the distribution process. The greatly inflated cost of goods prior to arrival on the store shelf due to this multilayered tax process will not be transparent in the least.

This does nothing to improve transparency as far as Govt. spending is concerned.