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Fair tax is one tax charged at the retail level. The fair tax eliminates all other Federal taxes including gasoline. So actually the fair tax would drive up the price of all housing since there will be a 23% tax on the house to buy it. So the owner of a rental will have the ability to ask for rent to cover the sales tax.
In the current structure the renter does not get the home deduction and in a fair tax the renter would not get the home deduction. In the fair tax there would be no deduction since the tax is charged at the point of retail sale.
The calculator will assume any set of figures you wish to put in
So does the flat tax, end all other taxes.
The fair tax unfairly taxes the poor and middle class. I'll explain
If you make 50K a year, and have a family of 4, you probably have to spend 100% of your income just to make ends meet. That means you are taxed on 100% of your income.
Now, if you make 500,000 a year, and have a family of 4, you can live quite well spending only 250,000 dollars, and you are only paying taxes on 50% of your income.
Fair tax isn't fair, despite name and popular belief by those who don't understand it.
Now you can say "well we won't tax on necessities" but there you have created a loophole, and loopholes will be exploited.
And that's a good thing since its spent on goods and services. Any land value that remains tends to go to the mortgage industry as interest payments, not to the home owner.
The mortgage industry is drop dead stupid easy since the market is what really sets the price of housing( heavily influenced by how loose credit is). The best tax there is is a nationalized mortgage industry. Its basically a market based land value tax. This is a no brainer on ground rents especially.
For those who choose to be heavily mortgaged rather than paying down the principal quickly (or cash purchasing) your scenario holds true.
Location: Just transplanted to FL from the N GA mountains
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I have another question in regards to the "fair" and "flat" tax's...
You Have Joe plumber, he is not incorporated instead he is a sole proprietorship. His gross receipts total 250K. His business expenses are 150K. How much tax would he pay based on each scenario? Is he taxed on net or gross?
I have another question in regards to the "fair" and "flat" tax's...
You Have Joe plumber, he is not incorporated instead he is a sole proprietorship. His gross receipts total 250K. His business expenses are 150K. How much tax would he pay based on each scenario? Is he taxed on net or gross?
This is not a fair tax thread...
Your data on Joe plumber is bogus, he is a loser earning less than $50k...
I voted no...because it isn't fair to the average citizen.
1) 15% is a joke. It would need to be 30 to 35%. I think 32% is a perfect rate.
2) There would need to be an exemption like $15,000 for single people and $30,000 for married couples. So, a single person that makes $30,000 a year, only $15,000 would be taxed.
3) For small business owners, only personal income would be taxed.
4) There would need to be an exemption (like a lower rate) for those living on disability and the retired...
I have another question in regards to the "fair" and "flat" tax's...
You Have Joe plumber, he is not incorporated instead he is a sole proprietorship. His gross receipts total 250K. His business expenses are 150K. How much tax would he pay based on each scenario? Is he taxed on net or gross?
His household income would be taxed at the same rate. Whatever he is taxed for social security, is the money he'd be taxed on under a flat tax plan.
Any money spent on the business would be tax free. Eliminate all corporate taxes, only tax the individual.
So you're asking people who receive social security to give 15% of it back?
Bad idea.
You think poor people, half the country, can afford 15% more of their income?
Bad idea.
Let's take the deductions out of the works, tax offshore profits, and then see about the need for raising taxes on the elderly and the poor.
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