The Fair Tax

[Turfgrass]

I am a huge fan of the idea of replacing the income tax with a consumption tax. It?s not often that you come across a policy idea with no real downside ? but this is one.

You can find out almost everything you need to know about the move to eliminate the IRS, repeal the 16th Amendment, and institute in its place a national retail sales tax at http://www.fairtax.org. Read as much as you can, then imagine what it would be like to keep virtually every penny that you earn, invest tax free, and see prices on consumer goods fall as much as 20% or more! Add to this the fact that you would receive a rebate from the government equal to the sales taxes that you would be expected to pay every year on the basic necessities of life.

Republican Congressman John Linder is the principal force behind the legislation for a national retail sales tax. This idea could transform this nation. I believe it could even save our Republic.

If the Soviet Union can fall, so can the IRS.

 

[taoist]

I don't want to get this all stirred back up, but here is a thread where we all debated over the tax system....

Tax Thread


...do I think that a national sales tax would work? No. Are we going to tax "sales" of services or only sales of products? I see that in one of the articles they plan to tax services.... Now, when I pass the bar exam and begin to practice law, do you think that I will go up on my rates to cover this new tax on legal services? You bet your sweet ass I will!!! So, either directly or indirectly, the tax will fall on the consumer.

Why would prices on consumer goods fall 20%? Are the generous multinational companies that produce these products going to eat the tax or pass it on to the consumer?

I took this excerpt out of the site.... "Did you know that hidden income taxes currently make up 20% to 30% of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard, hidden income taxes are passed on to the consumer in the form of higher prices, from 20% to 30% higher than they would otherwise be for everything you buy."

I say bullchit!!! Again, I ask you, are the generous multinational companies that produce these products going to eat the tax or pass it on to the consumer? Why would they pass it on to the consumer now, but would refuse to pass it on under this new plan?

Another excerpt.... "With the FairTax, if you choose to buy any new good or service for yourself, a consumption tax of 23%, will be added into the price. If you choose to buy used goods used car, used home, used clothing you do not pay the FairTax. If, as a business owner, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax. So, in deciding what to buy, you get to choose whether or not you will pay the federal consumption tax."

How in the hell can this possibly be implemented? I go to the store to buy office supplies...clerk asks whether I am purchasing for personal consumption or business consumption?

Another excerpt.... "Perhaps most importantly, to ensure that no American will pay tax on necessities, the FairTax plan provides a prepaid, monthly rebate for every registered household to cover the 23% consumption tax spent on necessities up to the federal poverty level. This is how the FairTax completely untaxes the poor, and lowers the tax burden on everyone else. Can you see how much freer life will be with the FairTax instead of the income tax?"

...uh, no!!! Are we now going to be forced to keep receipts for every fawking thing we purchase? As far as I can tell, this plan has the solidity of swiss cheese.


I haven't read all of the material at the site that you posted yet, but I will try to get around to it.

 

[Turfgrass]

I think if you read more, you would find the answers to your questions.

It's the best idea, I think, to fix a broken system that everybody thinks is unfair to somebody...i.e. rich or poor.

 

[djv]

Or just dont tax the first 15000 grand every one makes. Then have a 20% bracket after that for everyone.

 

[taoist]

...dave, that sounds alot like a flat tax to me.... :nooo:


...that's it. I give up....