[P No R, Just P] Fair Tax?

to begin with, that was a disingenuous representation, the current proposal is for a 30% tax, they use marketing to make it look like a 23% tax



that said, yes...
current system is in need of repair, no doubt.




however, the fair tax isn't the answer to my eyes either, certainly regressive for more than 1/2 the population

if your current tax burden (fed income etc ) is > 30% of your aggregate spendings on goods,services,etc  it's for you.  (aka, you're rich and don't spend anything close to all you earn)

I think if you called it what it is, a National Sales Tax, it wouldn't get off the ground.

It's a regressive system, and just more 'Keep Your Hands Off Of My Piece Of The Pie' so-called 'Conservatism' that we've been treated to for the last 25 years.

Hell, they already do, which is why I can honestly say that in a place that ALREADY has 9 pct local sales tax, adding another 20 or 25 pct isn't working for me.

Here's how I understand it:

My 25 pct total Federal withholding would  drop by half, while my tax on all purchases made would increase by 20 pct. Every dollar I spend would have 30 cents added on, so when I buy a pack of gum for 1.00, I'm going to end up paying 1.30.

Yeah, that's going to work out for me really, really well.

NOT!


I wondered about that too...

I'm an evil ten percenter.  My opinion matters not.  Come to think of it, probably most of you are too.  So shut the *fudge* up already.   

I would like to see stroh's tax burden reduced though.  I'd hate to see him snap. 

Sales tax would be higher, but wouldn't everybody's take-home pay be higher since there wouldn't be a need for income tax witholding on each paycheck?

 

Well to be a little more fair than the 'conservatism run amok' bunch, I'll play devil's advocate for a moment.

There is a basic monthly "prebate" (distributed by the SSA) to account for basic goods (poverty level spending) that rolls out like this:



This is the plan to make the tax progressive.

Also, since the Fair Tax takes on FICA and Medicare as well, your take home pay likely goes up more than 15%.  More money to spend on what you want.

Eliminating the IRS, filings, and associated CPA overhead is also a tremendous savings to all; more tax money to spend on SS, Med, etc.

















But it still sucks  .  Taxing spending directly will likely have an affect on spending.  Spending makes the economy go round.  When the economy slows everyone loses.  For instance, you get more money out of your paycheck but now are looking at 30%+ tax on all your purchases.  So, in terms we can all understand - that new driver that used to cost $400 + ~7% tax ($428), is now $400 + 37% tax ($548).  More money in your pocket or not, that extra cost may give you pause.  If not that, then a new car at $25,000 + 37% tax ($34,250) surely would.

Now, the argument is that without business taxes, consumer prices will drop.  Yes, perhaps some - but I'm not holding out hope for a difference that will not make people think an extra moment before making a large purchase because of taxes.  With just one out of a hundred choosing not to spend the 'extra', that does have a retail affect.

Sure, we are still paying today via income and payroll taxes - but once that is paid there is minimal 'penalty' (additional taxes - local, state, etc.) on new purchases.  We do all sorts of things to avoid taxes (keep your money) - what makes Boortz think we'll suddenly stop, I don't know.