Why is the FAIR TAX good for you and good for America???

By replacing both the income tax and the employment tax (among others) with a single sales tax, we would accomplish these good things:


Everyone pays their taxes..... even if they are not here legally and even if they are not payed legally, I know a few people who have social security cards and were born here but still get payed under the table and go tax free........... when they decide to spend the money they earn under the fair tax, they pay their taxes!!

Eliminate the corporate income tax and the entrenched, corrupting lobbies that it has engendered.

Make visible, for the first time, the size of our collective tax burden.

Save the incredible amount of time and money wasted on tax planning and scheming.

It will get rid of the IRS, imagine how much money that will bring to other things.....

It will increase the tax base that supports social security and make that less of a burden....

End the biannual festival of finger-pointing and envy that has become the hallmark of every election cycle.

Remove the embedded expense wedge that reduces the competitive position of American-made goods.





Neal Boortz said this a few years ago:
"If you are sitting fat and pretty with a 401K plan or other deferred income plan when the Fair Tax hits you will be able to withdraw the cash with no penalty and no tax consequences. Not such a bad deal, huh?"

Sounds pretty friggin nice right!!







Now I am not saying fair tax will mean you pay less taxes... but how much eaiser would this be. You pay taxes only when you wanna buy something and not every time you get a paycheck, and EVERYONE pays them!!

 

I think it a good plan if for no other reason than to make how much taxes we pay more visible. Right now, to most people in the US they don't really pay attention to how much they pay because it is taken out of their check before they even see it. Not only that, but more is taken out than they need to pay so that once a year the government sends them money back and people think they are actually getting something. In reality they just gave the government an interest free loan. When people start seeing how much they have to pay at the register, maybe they will start realizing how bloated the government has become and that it might actually be a good idea to reduce spending and thus reduce taxes.

 

I have always thought this was a good idea. I would be willing to risk paying more tax in knowing that everyone was paying the same percentage. The people that earn more, that spend more, would pay more tax. The people that earn less, spend less, would pay less tax. If you want to lower your taxes, simply spend less.

My career has been in government (don't shoot me) and it is a big eye opener. I have always done my best to let the public know how it really is, but overall people really have no idea.

Until pet projects are put aside and the problems are worked on, nothing will change.

 

Thank you guys sooo much for the reply. That was exactly how I felt about it lai pantha, if you wan't to pay less in taxes you will learn really great ways to spend less money. I only shop on the clearance rack as it is now, it is a habit. Even if I have the money to buy whatever I want I am very tight fisted with it!

And mos def Walker, people I think are so ready to cash their checks that they do not even look at what was taken out in taxes.. but once you see it on a daily basis it is easier to know what is going on!!

 

You guys honestly don't favour progressive taxes?

 

in all honesty, NO

If you mean progressive referring from low to high, meaning poor people pay less, rich people pay more.... I am tired of people going nuts around tax time because they get EIC, dont get me wrong I got EIC a few times because of my kids and it is like Christmas at tax time, But we should pay in exactly what we have to and not see tax time as a "special little treat".

seriously if you are skeptical read the Fair Tax Book by Neal Boortz and John Linder, it is a great book!

 

So everyone pays the same amount of tax regardless of wealth?
Are you people for real. God, this is the first time I've ever agreed with Spooner, I think??

Ok so heres the weekly shopping bill of mr and mrs poor and their two kids
they pay £100 a week for food out of their income which of $300 of that 20% ($20) of their food bill is tax so they paid $20 in tax which is 6.6% of their income

now mr and mrs rich and their two kids with a weekly income of $2000
they buy $300 worth of food which means they pay $60 tax
that is 0.03% of their income

your economy means the poor support the rich, a recipe for economic disaster
since then the poor have less money to buy rich mans trinkets !

ok so the rich man is now paying 0.03% and the poor are paying 6.6% tax that means that to spoend less and therefore pay the same amount of tax - the poor must feed 2 kids and 2 adults on $1

are you crazy !!!! ?????

What career was that ? clening the office when the government workers went home - you certainly werent no politician I can assure people of that otherwise YOU are seriously telling me that people of erm.... your intellect can actually get office ???
sheeit an I just thought they were corrupt - looks like the revolution will be easier n I thought to win

 

I don't think you understand, everyone will pretty much pay the same amount of tax they pay now................. just not right out of your paycheck, people who make more, spend more. that is how it goes.. no one said this was a way to lower taxes and to make everyone happy, which isn't going to accomplish anything.


with fair tax, you don't pay taxes on money you put into savings accounts and retirement, you only pay taxes on things you buy!! As it stands now I am taxed when I get my paycheck, if I put it in the bank, they tax all my interest, they tax any savings bonds i cash, they tax any money i win in vegas and any money i win if i play the lottery..............

why is that fair, how can they tax my money more than once, why can they tax me when i earn it, then tax it every year when i make a little bit of money at the bank, then again tax me when i go to spend it...............

I would much rather bring home my whole check, then pay the taxes only when I decide to spend it!

 

Thats right you do, Its called income tax - you earned it from living in a country administrated and franchised by the USA corp, The UK LTD etc etc etc you pay income tax because you earned money - by whtever means - dont pay tax then -but then you will suddenly see that you got no police on your streets, murder rates go up, people starve to death all because a load of greedy ass middle class people decide they prefer greed to society.

The poor cant afford to save - this would be a tax the poor campaign not a fair tax but a tax the poor and fuck society tax

Or cant you add up? just work out how the tax system always favours the rich and what you lose by making the rich richer and the poor poorer

erm actually no - DO IT !! it will be good for my cause ha ha ha
If the poor are starving - EAT THE RICH !!!!!!!

 

If fair tax became law, everyone would more than likely immediately see a pay raise, it would not cost your employer a penny, since they pay that to the IRS, they wont be paying it to them anymore, then it gets passed onto you....

The next thing you would notice is that, at the end of the year, you wouldn't have to pay more taxes to the IRS. The IRS also wouldn't be deducting or withholding money from your regular paycheck like they do today. You would be getting your full paycheck every time you were paid, and you would no longer see massive deductions for federal tax that the IRS takes out of every paycheck that you get.


Fair tax would make all goods and services less expensive (initially). When you go to the grocery store and buy groceries, you would find them to be a lot less expensive. The same thing will go for all other products too Cars, Homes etc...


Every product or service that you purchase has a much higher price than it normally would because the providers of those products and services are also paying payroll taxes for their employees, and their employees are paying additional taxes. So, if you add up all of these taxes, the prices on the products and services that you're buying today are actually inflated by the accumulation of all of these hidden taxes. These hidden taxes would disappear under the Fair Tax. Therefore making everything you buy much much cheaper..... Right now we are making up for the taxes everyone that touched the product before us payed!!!












Let's say right now you're taking
home $1,000 / week, and you're paying a 35% federal income tax rate. That's $350. Under the Fair Tax, you'd get to take home your full earnings: $1,350 / week.

Furthermore, the money you take home will actually go further because the products and services that you purchase will be less expensive!!

 

we would still have police and social workers and firefighters and they would be payed better than they are now because more people would be paying taxes, do you know how many people in the us evade taxes and do not pay and it goes un-noticed, these people will have to pay if they want to eat food and wear clothes!!! bringing much more money into our system to pay for things we need

 

Sales taxes disproportionately hit the poor because they have fewer ways to avoid paying it. At the moment if you earn less than $8450, you don't pay any federal income tax, but you pay the same tax on something if you're earning $500 or $5000 a week.

 

No one should be able to avoid taxes.... Just because you are poor doesn't mean you should slide on by without paying. I used to support a 4 person family on less than $900 a month, we lived in govt. housing and had food stamps. But I still had to pay taxes. Why would it have been fair for me to not pay taxes, if I was living in housing that taxes paid for??



With fair tax you will receive, untaxed until used to buy new goods or services, a prebate each and every month based on the number of people in your household. Not based on your income or marital status, but on the size of your household. As a senior, you will receive a smaller prebate than a young couple with a couple of kids, but then, you will not be spending as much for the basic necessities of life.

Used goods are not taxes, if you go to the thrift shop, you are not taxed on those items, you shouldn't be taxed on someones old sweater in the first place!

 

I think you and I are going to have to agree to disagree on this!

 

Here in Tennessee we do not have an income tax. We have a sales tax. We are doing just fine. In fact we are doing better than many states and most people are not starving. For a politician to mention income tax here is almost certain political death.

 

That's because the poor don't vote and so the poor aren't a priority among politicians (I don't think that's just a Tennessee thing though). Given the choice, the poor will usually favor an income tax (with a minimum on which they pay no tax at all), because a smaller %age of their income is taxed. With a sales tax 100% of the income they use is taxed and they earn so little that it's difficult for them to save.

The rich will favor a sales tax because they're more likely to save and it's easier to create a system in which they avoid paying it.

 

I just want to say thank you to everyone who posted....

Even if we disagree it is good to get some responses =) no one ever responds to me anymore LOL

 

There are other states with no 'state' income tax. Most of these states have other revenue, usually entertainment or vacation attractions. These states have a higher sales tax most of the time, but they are also receiving more money from out-of-state traffic.

Alot of people make the mistake of applying fair tax only to food items. Fair tax can only work if applied to all goods. Thrift shops would be a good exception, but you have to be careful in making exceptions. It creates loopholes for people to exploit.

When applied to all goods, a family that brings in $1000 and spends $1000 will pay $100 is the tax rate is 10%. The family that brings home $3000 and spends $3000 will pay $300. Still 10%. Does the family that brings home $3000 have to spend it all? Maybe, maybe not. All to often when pay goes up, people find more things to buy. It will still be up to each household to determine what they spend and therefore determine their tax base.

Currently I can have 25% of my income pretaxed as anyone in the US can. This law favors those that make more. Is that fair or not fair? A family on the edge of getting a tax break could miss out since their 25% is less.

There are so so many ways numbers can be crunched. After being in finance for 20 years, I have seen numbers massaged in many ways. (btw my career is not cleaning )

Only by having a flat tax with no loophole and exceptions can you give a even playing field. The true question is do people really want a even playing field? For most people, only if it favors them.

 

I believe it, people will always manipulate things to fit what they want.... My mom is a CPA and I have heard a lot of crazy things, even crazy ways of book keeping LOL random scribbles of dollar signs on napkins thrown in a crate and such..........

I want to even it all out in a way that favors everyone in the long run..... I really think it will work if we give it a chance and if more people learn about it before they toss the idea out the window

 

No, it won't get passed to me, it will get passed on to my employer's bank account.