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Is it me or is this a REALLY good idea. it is essentially abolishing all taxes in exchange for simple 23% consumption tax (with a annual consumption allowance between $10k and $40k, depending on how many dependents you have) .. any country using a tax system like this will HAUL in businesses from the around the world.. HAUL in jobs.. you would be able to tax consumption by illegal immigrants too, or tourists or ANYONE. it will even encourage investments in new businesses which will, together with foreign businesses from around the world, cause a jobs boom. from an economic point of view, this will solve alot of the current economic problems.
The problems with such a suggestion include (a) Selfish, greed-mongering right-wingers would insist on excessively low consumption allowances, far below any reasonable level of the cost of subsistence living, claiming that everyone should pay a share, including those who our society fails in terms of the provision of greater-than-subsistence compensation from work. Given that compassionate, socially-conscious moderates and left-wingers would insist on a more reasonable consumption allowance, and that the gulf between the two would be so large, and that the selfish, greed-mongering right-wingers would have no qualms about using the filibuster to obstruct anything that they personally don't support, there would be no chance for any such tax system change garnering enough support to pass. (b) Even if somehow such a system was adopted, selfish, greed-mongering right-wingers would immediately set-about to exploit every loophole and exploit they crafted into the system via amendments. One possibility would be the creating of societies which would present as resellers (and therefore their acquisitions not taxed), but providing means-within for consumption by its members to take place.
The problem with your proposal is that the very wealthy's taxes will drop dramatically while those at the lowest levels (e.g. those worse able to pay more) will pay much more. That's why the proponents of a flat-tax and the people funding the movement are the richest families in the nation.
In a time when the poor and middle-class are struggling we don't need to worry that billionaires are paying too much.
The plan also encourages tax evasion through an underground economy.
The very wealthy save the vast portion of their income. The poor and middle class consume most of teir income. It's clear where the burden falls.
There isn't anything wrong with the progressive income tax that requires such a radical overhaul.
The problems with such a suggestion include (a) Selfish, greed-mongering right-wingers would insist on excessively low consumption allowances, far below any reasonable level of the cost of subsistence living, claiming that everyone should pay a share, including those who our society fails in terms of the provision of greater-than-subsistence compensation from work. Given that compassionate, socially-conscious moderates and left-wingers would insist on a more reasonable consumption allowance, and that the gulf between the two would be so large, and that the selfish, greed-mongering right-wingers would have no qualms about using the filibuster to obstruct anything that they personally don't support, there would be no chance for any such tax system change garnering enough support to pass. (b) Even if somehow such a system was adopted, selfish, greed-mongering right-wingers would immediately set-about to exploit every loophole and exploit they crafted into the system via amendments. One possibility would be the creating of societies which would present as resellers (and therefore their acquisitions not taxed), but providing means-within for consumption by its members to take place.
The problem is, people like you don't understand that it wouldn't change the prices on what we pay. Figuring in employers match and/or other taxes paid, over and over that's tied in to prices on everything we buy, if you removed those and put a 23% tax on the goods and services, prices wouldn't change much, BUT we would keep most of our paycheck, giving us more money to save/spend. I mean seriously, don't you realize that the prices for goods and services already have taxes paid rolled into the costs? Self employed? Roll the taxes into the cos of your goods and services! Take em out, put in 23% Fair tax, no change to cost. All those things on the shelves at the store, employer match or self employed taxes to make or pick or whatever, same to transport, same to stock, same to sell. ALL those taxes rolled in, they are no longer required, and replaced by 23%. Heck, some prices may actually go down!
Now the REAL reason it won't pass. It takes power away from congress. Greedy Left wingers trying to get votes by promising to raise taxes on the rich won't be able to do that any longer. Taxes that end up getting paid by everyone else except those with money.
One more illustration of how rich people get working people to fight for the interests of the rich.
Working people and middle class people spend virtually everything they make, so everything they make would be subject to the consumption tax (less whatever "allowance" the rich allow us). Rich people couldn't possibly spend what they make, yet they would be taxed only on what they spend and they would continue to amass their fortunes tax-free.
Seriously, wake up, people. If you work for a living this proposal is not for you.
I propose an income tax based on all income from all sources with a deductable set at the 95th percentile. That way the people that own and run the country can pay for the privilege while the rest of get on with living on what we EARN.
Any consumption tax must also be applied to financial and investment purchases as well.
I am all for it! My taxes would drop dramatically! Doesn't it also essentially abolish the IRS?
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