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Politics & ReligionWell Since every damn forum has one. Might as well leave it out there. This place is loosely moderated and should not be entered if you're weak of heart.
Everyone done filing their income taxes? Are you ready to do away with the nonsense you just went through?
We've got 7 of our congressmen on board in Georgia. Even one Democrat realizes the benefits and is supporting it against his party's typical stance... how's your state looking?
Get the word out for the FairTax. Write your congressman to tell him/her to support it.
If you got questions, I probably got your answers.
I don't think I've heard about this before, but I think the concept is great. I wouldn't mind having the extra $8000 every year in my check instead of directly to the government. I've been pretty good lately with my spending, I'm pretty sure I'd be making out really well in the end.
But am I the only one that thinks it's highly unlikely to see any HUGE change like this anytime in the near future? Especially since this is a 'fair tax' and the wealthy are the ones that make the laws, and they would be the ones that could be negatively effected by this.
Oh yea, and what is this 23% tax on new goods going to do to the car market? I thinking buying cars new is a stupid idea in the first place, but instantly the $16k honda civic now costs almost $20k.
Since the tax has already been paid, buying a used car will not be taxed - I would assume only state sales tax, etc. Who's going to be buying new cars?
So, if you make twice as much as you need to live you only pay tax on half your earnings. But some poor slug who lives paycheck to paycheck pays tax on all his earnings.
So, if you make twice as much as you need to live you only pay tax on half your earnings. But some poor slug who lives paycheck to paycheck pays tax on all his earnings.
Great idea.
I don't think I read that in there anywhere. The 'tax' you pay is on things you buy. If you make more money and therefore buy more things, you're paying more tax.
If you're 'poor' and on a fixed income, you're still paying tax for the things you buy, but it's less... Because you have less money.
There is also some sort of rebate type thing depending on your income, maybe someone else can elaborate on that one though.
I don't think I read that in there anywhere. The 'tax' you pay is on things you buy. If you make more money and therefore buy more things, you're paying more tax.
If you're 'poor' and on a fixed income, you're still paying tax for the things you buy, but it's less... Because you have less money.
There is also some sort of rebate type thing depending on your income, maybe someone else can elaborate on that one though.
You don't really understand this do you? Consumption taxes are most regressive form of taxation. The richer you are the higher percentage of your income you get tax free; the poorer you are, the higher percentage of your income you pay tax on.
Unless food, clothing, shelter, transportation, and education are exempted from taxation, this strategy is a dramatically onerous burden on the poorest Americans.
Pricing more people out of the market for personal transportation will also have a domino effect that increases poverty and ultimately homelessness.
You could add a consumption tax on luxuries and use it to reduce the overall income tax. That could be a progressive tax. But keep in mind that motorcycles would be taxed if the buyer already owned another form of transportation.
In my view, the Fair Tax is another strategy for duping the middle class into benefiting the rich.
So, if you make twice as much as you need to live you only pay tax on half your earnings. But some poor slug who lives paycheck to paycheck pays tax on all his earnings.
Great idea.
Didja read it, Jim? Or did you just figure that anything that proposes to make taxation more transparent must not be a good idea?
"The FairTax prebate “untaxes” the poor and ensures that no one has to pay tax on the basic essentials of living, making the FairTax progressive."
PhilB
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"If you want to be free, there is but one way; it is to guarantee an equally full measure of liberty to all your neighbors. There is no other." -- Carl Schurz, (1829-1906) German born U.S. Senator and Union Army general during the US Civil War
"A free man must be able to endure it when his fellow men act and live otherwise than he considers proper." -- Ludwig von Mises
I don't think I've heard about this before, but I think the concept is great. I wouldn't mind having the extra $8000 every year in my check instead of directly to the government. I've been pretty good lately with my spending, I'm pretty sure I'd be making out really well in the end.
Glad to know you read some of it. I encourage you to check out the Fair Tax book from Neal Boortz and John Linder from your library (or else buy it for $5 at a used book store).
That's the idea - you shouldn't be taxed on saving money. And retaxed when you take it out. And taxed again after you spend it (Ad Valorem, anyone?)
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But am I the only one that thinks it's highly unlikely to see any HUGE change like this anytime in the near future? Especially since this is a 'fair tax' and the wealthy are the ones that make the laws, and they would be the ones that could be negatively effected by this.
The tax code was completely overhauled in the mid 80s. It has become the beast it is through our wonderful politicians.
It can happen again with enough support.
Feel free to ask any other questions, but please do read more on it - it's the best tax reform plan that's out there.
Oh yea, and what is this 23% tax on new goods going to do to the car market? I thinking buying cars new is a stupid idea in the first place, but instantly the $16k honda civic now costs almost $20k.
Since the tax has already been paid, buying a used car will not be taxed - I would assume only state sales tax, etc. Who's going to be buying new cars?
The estimated 23% sales tax is charged only at the retail level. Embedded taxes are eliminated. Goods will not go up in price, in fact they will stay about the same (if not lower).
Think of it this way, a company makes the car. You pay for the car. The company paid the government taxes on the manufacturing of the car and income reported after selling the car.
They simply mark the car up for those charges from the government. You pay for them in the price right now.
All those taxes are eliminated with the Fair Tax, so they do not need to mark the car up to make up for the loss from taxes.
You're correct - used goods are not taxed again. Many people will continue to buy new cars... I mean think about it now.
Who buys new cars now when everyone knows the maximum depreciation is in the first three years?
So, if you make twice as much as you need to live you only pay tax on half your earnings. But some poor slug who lives paycheck to paycheck pays tax on all his earnings.
Great idea.
Poor slugs that live paycheck to paycheck essentially have eliminated government taxation from their lives due to the prebate on essential living expenses.
Their effective rate, assuming they are poverty-stricken, is 0%.
If you want to make it equivalently "fair" in your perfect world, then how about our votes are worth our tax percentage? If I'm paying 23% of the bill and you're paying 0%, then my vote should count more.
I don't think I read that in there anywhere. The 'tax' you pay is on things you buy. If you make more money and therefore buy more things, you're paying more tax.
That's correct. Rich folk who are buying yachts are paying 23% for that brand new million dollar yacht.
According to the research, an average consumer in the middle income range will effectively pay around 14% due to the monthly prebate.
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If you're 'poor' and on a fixed income, you're still paying tax for the things you buy, but it's less... Because you have less money.
There is also some sort of rebate type thing depending on your income, maybe someone else can elaborate on that one though.
The prebate is based on poverty levels. You receive this prebate before the month that you would spend a certain amount of money on the essentials (negating the tax paid on those items).
It's not based on your income, it's based on the number of folks you are supporting in your household (wife and kids).
You don't really understand this do you? Consumption taxes are most regressive form of taxation. The richer you are the higher percentage of your income you get tax free; the poorer you are, the higher percentage of your income you pay tax on.
I love class warfare, it's fantastic.
The richer you are, the higher percentage of your goods are purchased new, and therefore taxed.
It's not a statistical anomaly.
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Unless food, clothing, shelter, transportation, and education are exempted from taxation, this strategy is a dramatically onerous burden on the poorest Americans.
Nothing is excused at the retail level. That is how we got in the mess we are in now.
The monthly prebate excuses the poorest Americans from ANY tax burden.
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Pricing more people out of the market for personal transportation will also have a domino effect that increases poverty and ultimately homelessness.
Untrue - tax is collected only once at the retail level. Used goods are never taxed again.
Eliminating the income tax doesn't eliminate depreciation. Used cars will still cost less.
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You could add a consumption tax on luxuries and use it to reduce the overall income tax. That could be a progressive tax. But keep in mind that motorcycles would be taxed if the buyer already owned another form of transportation.
Progressive, regressive, whatever. You're applying terms based on your ignorance of the plan, and obviously do not understand the taxation strategy.
A consumption tax is only regressive when you do not apply the prebate, effectively reducing the taxation burden from those that cannot afford it. The truly poor will pay ZERO towards the tax. I don't see why Dems aren't completely on board with this (is it because they really don't actually care about the poor?)
Also, the national sales tax would increase the tax base (think tourism, current black market earners, illegal immigrants) and consumption taxes are widely believed by economists to encourage wealth building, due to the increased "purchasing" power of the people.
Not to mention never having to trudge through Turbo Tax ever again.
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In my view, the Fair Tax is another strategy for duping the middle class into benefiting the rich.
I don't see how this is any argument against the FairTax.
First of all, the CURRENT tax code burdens the middle class the most.
Secondly, the middle class would have more options for saving available to them, due to increased purchasing power.
Third, the truly rich would benefit from the FairTax LESS than the current tax code - in that there would be no special interests to play the politics game for. No more "donating" to the ways and means folks to try to get yet another corporate tax break for your industry of choice.
Are you ready for the FairTax NOW?
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