Fair Tax?

[ArmyGuy45]

Would you like to switch over to this tax system?


FairTax Nation - Replace All Federal Taxes on Income with the FairTax Act of 2009, HR 25/ S 296

YouTube - Huckabee on Tax System Overhaul

[Reno82]

Some or most cities and states have a sales tax. Only the rich will get richer. Poor income payers don't pay that much in income tax. But wait till you pay a sales tax on every thing. I think a flat tax is fair. So if a poor person wants a new car..... you can't afford. "Those at the top benefit... 4%." at 5:36 of the video. People at the bottom already benefit from the tax system. Just my 2 cents.

[Uriel999]

Abolish the IRS and replace it with nothing.

[Fredo]

Flat tax - no exemptions, no loop holes.

Of course, the probability of that passing in a congress composed of lawyers is nil.

[gsh341]

The Fair Tax is a great idea.

The best part is that you pay no tax unless you actually spend your money.

Some advantages to this are;

1. No tax on retirement investing or dividends earned.

2. No annual income tax filing.

3. No more IRS as we know it.

4. Tax cheats would virtually disappear and they'd be easier to locate and audit since the government would only have to look at businesses and not every citizen.

5. EVERYONE gets taxed equally.

The one thing there needs to be is a way to make sure that the poor can get needed tax breaks by allowing certain essential items to be tax free. Things such as generic food, basic clothing and low-cost or government subsidized housing. Non-essentials such as coffee, tobacco products, candy and any non-basic clothing would remain taxable.

[KEVWYO]

What would the rate be?

Any deductions? Kids, mortgage interest?

Would the fair tax replace be in addition to a sales tax on purchases?

I see accountants, tax attorneys, IRS employees, and Congress opposing this ... just a hunch .


ETA:

I heard Huckabee say something about 23%. It appears that things such as medicare/aid would be financed within that 23% in addition to a lot of other things. It sounds good in theory but I will reserve judgement until somebody can crunch some honest numbers to tell me how this is going to affect Washington spending, state spending, my checkbook.

[Reno82]

Originally Posted by KEVWYO

What would the rate be?

Any deductions? Kids, mortgage interest?

Would the fair tax replace be in addition to a sales tax on purchases?

I see accountants, tax attorneys, IRS employees, and Congress opposing this ... just a hunch .


ETA:

I heard Huckabee say something about 23%. It appears that things such as medicare/aid would be financed within that 23% in addition to a lot of other things. It sounds good in theory but I will reserve judgement until somebody can crunch some honest numbers to tell me how this is going to affect Washington spending, state spending, my checkbook.

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.

[KEVWYO]

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.

Depending on individual circumstances 23% may not be high as you think. Taking my circumstance as an example, I am in the 15% fed category, 1/2 of FICA is an additional 7.5%+/-, and then state income tax on top of that is another 5-7% (fed taxes offset what the state hits me for). That is roughly 27-29% so if you're anything like me a 23% fair or consumption tax seems like a modest break. Personally, just not sure how I feel about having a $23 tax bill on my $100 grocery bill. I guess it would just take some getting used to knowing that come April 15 would just be another day instead of the national holiday of BOHICA that it is now.

[photogbill]

I vote a strong NO ...on the 'fair' tax! Who came up with the 23% 'fair' figure? Why did they come up with 23%? Why not 20% ....why not 18% ...how about 10%? Isn't Huckabee a Christian? Why does he think 10% is 'fair' for God ...but 23% is 'fair' for the Govt!? What makes anyone think they can trust the federal govt. to keep the 'fair' tax at 23%?

What happens when they continue to spend our tax dollars like drunken sailors? (no offense meant to sailors) What is there to stop them from spending into deficits?

So ...what will their solution be ....to raise the 'fair' tax to 25% ...of course! ..the when that doesn't work ....it will go to 30% ...and on ...and on!

The 'fair' tax would also be destructive to business and normal commerce! It would hurt the economy by making some purchases too expensive for consumers!

I know Huckabee thinks he's brilliant for his support for the 'fair' tax ....but it's one of the reasons I didn't trust him during the primaries. It's not 'fair' to commerce or consumers and a 'hairbrain' idea, IMO ...with no safeguards to what the fed. govt. will decide what % is 'fair' in the future!.

I'd be more in favor of a 'flat' tax ...somewhere in the 10% range ...where everyone above a certain minimum income level ...would pay the exact same rate! Period!

[photogbill]

Try adding 23% to everything you purchase ...including high dollar items like cars and homes!

If you think adding $23 dollars to your $100 grocery bill is bad!

Try adding it to these items.

You think your car payments are high now? ....you think you morgage payments are too high. Try adding 23% to the price before you calculate your monthly payments on a 5 or 6 year car loan ..or a 30 year home loan!

That $30,000 car just went up in price to $36,900 <<<< before your down payment and before your financing cost! That will also probably mean your 'final' cost ...after your trade in and cash down ....for that car will be higher ...which will cause your state sales tax ...or documentation fee (just another name for a tax) go higher!

How about a $100,000 home that now will cost $123,000 ...or that $300,000 home will now cost $369,000 <<<< before amortizing that home loan for a 15 ...25 ...or 30 year mortgage/loan! A $500,000 home will now cost $615,000 <<< plus the higher monthly interest amounts on each and every monthly payment!

How would this 'fair' tax not possibly hurt the real estate business?

Isn't the word 'fair' ....so ...so ...war and fuzzy? Kinda like the words 'hope' ...and 'change' ....but the devil is in the details.

And ...oh yeah ...your refrigerator just went on the blink ...and you want to save yourself the additional cost of a finance charge by buying it at a store that offers 'no money down and no finance fees for 6 or 12 months' .

Well guess hat ...the 'fair' tax just added 23% to that purchase that would otherwise not cost you another dime if you paid it off ...in full...within the grace period!

The 'fair' tax would hurt poor people the most!