In your opinion, what is the "fair" tax ? (unemployed, ethical)
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The business does directly pay its overhead, but don't you understand that the cost of that overhead is spread amongst its products and handed down to customers? It's not like, "Okay, my direct cost of goods sold (expenses) are x and my overhead (indirect expense) is y so I'm just gonna divvy up x and let the customers pay that while I completely disregard y." No.
Honestly, I thought this thread would have some good debate but people are so uninformed that it's just not even worth reading.
Have you really studied the Fair Tax and what it is? Your post sounds like you have failed to do this but are willing to fight it without much knowledge of how it works. Study up on it and then comment with all these socialist people.
I studied it...and cross paths with you on the subject...I found out that I knew more about it than you did.
I also found out that you rejected any information that didn't come from your 'pre-approved' sources.
The business does directly pay its overhead, but don't you understand that the cost of that overhead is spread amongst its products and handed down to customers? It's not like, "Okay, my direct cost of goods sold (expenses) are x and my overhead (indirect expense) is y so I'm just gonna divvy up x and let the customers pay that while I completely disregard y." No.
Honestly, I thought this thread would have some good debate but people are so uninformed that it's just not even worth reading.
If you were using a flat tax you can address this by exempting things related to basic living expenses. Food, clothing, shelter, energy....
The Fair Taxâ„¢ attempts to address this with the concept of the Pre-Bate check. All the money that you would spend for extremely basic items like food, utilities and shelter (from up to $10K for an individual to up to $48K for a couple with seven children) would be 'tax-exempt'. Every thing else purchased new or consumed as a service gets taxed.
What the Fair Taxâ„¢ doesn't address is the concept of disposable income. Those who spend a large amount of their income to live (and not just survive) wind up paying much more under a consumption tax (as a percentage of their income) than those who spend a much smaller portion of their income on day-to-day living.
The Fair Taxâ„¢ doesn't take into account people who have the ability to move their money and purchases offshore in order to avoid the Fair Taxâ„¢.
The Fair Taxâ„¢ doesn't tax businesses and corporations, but it does tax federal, state and local governments, the costs of which will be passed on to the local tax payers.
If you believe that the middle class should pay much more in taxes and the high income earners should pay much less in taxes then you'll love the Fair Taxâ„¢.
Businesses would love the idea of people paying all their taxes. Yes, that would be fair to them.
Consumers pay the price of corporate taxes already. You tax business the consumer will pay the tax by having to pay a higher price for goods.
So if you eliminate the corporate tax you allow business to hire people. lower their prices a win win for the middle class. More people being hired lower prices.
I suggest a progressive income tax based on all income from all sources (wage, dividend, inheritance, lottery), and as corporations are now considered individuals, their pre tax raw profit, with a deduction that relieves the bottom 90th percentile from the tax. This income tax should be supplemented with countervailing tariffs on all imported goods and services high enough to negate any economic advantage attributed to lower wages, dangerous working conditions and government subsidy.
I consider these to be “FAIR” taxes because income is a direct measure of the security you gain from this country’s laws and the fact that the top 10% own 90+% of the real and financial property in the country. The top 10% should pay for the maintenance of the country. The lower 90% would be able to live, consume, save and invest as they pleased. The tariffs would even the playing field for American manufacturers and workers. By eliminating the advantage of overseas manufacturing we would have “Made in USA” on most of our goods. When the cost of manufacturing in other countries was the same and as safe as ours the tariffs would decrease proportionately.
In a related measure the importation of labor from other countries, Mexico for unskilled, and H1b for skilled labor would be effectively eliminated. Farm and food processing wages would increase to attract Americans to the work, at this point the next generation of Americans born of illegal immigrants, would supply the workers. Additionally Americans would be encouraged to learn science, engineering and programming because domestic employment would be available.
I think the Federal Budget set by Congress should be paid for by the Income Tax proposed without additional borrowing (wars would be on a pay as you fight basis” as well as 10% of the outstanding foreign debt paid down each year. Between the revised spending limits, the tariffs and the income tax there would be some stress on the upper crust but the rest of us would have good paying jobs in stable economy.
These are my concepts of both a “fair Tax” and a “Fair Economy”.
A fair tax is something the same for everyone - so there are no groups of people who pay no taxes at the bottom or the top. A flat one would be great in that regard.
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