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Such nonsense you write. Why? When I go on a drive to see the new additions in my town where very beautiful new homes are being built, I certainly not get the sense that anyone is being punished for being successful. Instead, I get the opposite feeling.
lol, what do you call it when more and more of your money is taken the more successful you are? Just because they happen to have enough left over to spend on themselves doesn't mean they aren't being taxed unfairly.
One problem I see with the fair tax is that in a consumer-driven society it would seriously curtail spending. A large drop in demand could lead to further pressure to cut prices increasing our reliance on cheaper imports or deflationary effects on wages particularily at the lower income levels. This could cause more problems than it fixes.
I personally like a flat tax but perhaps an averaging of the two might work out providing lower taxes for production and modestly higher taxes for consumption.
On a separate note, I don't think that long-term capital gains, interest or dividend income should be taxed at all.
One problem I see with the fair tax is that in a consumer-driven society it would seriously curtail spending. A large drop in demand could lead to further pressure to cut prices increasing our reliance on cheaper imports or deflationary effects on wages particularily at the lower income levels. This could cause more problems than it fixes.
I personally like a flat tax but perhaps an averaging of the two might work out providing lower taxes for production and modestly higher taxes for consumption.
On a separate note, I don't think that long-term capital gains, interest or dividend income should be taxed at all.
We could slap a huge tariff on imports just as our trading partners do to us.This would level the playing field just a tad.
The current tax system is top heavy with operating costs etc. We need a more streamlined approach as is used with state and local taxes. This in itself could help leverage the tax rate down.
The problem I have with any new taxes is that the money is always used on other things that the tax wasn't meant for. That .9 on every gallon of gas for example.
We are still paying a tax on the civil war...
I have no issue with consumption taxes provided the money is used for what it was intended.
Well, it does slap a 30% surcharge on top of all spending on new products. Some might see that as a disincentive...
Wow, misinformation regarding the Fair Tax. I'm shocked.
First of all, it's 23%
Second, as it's been pointed out many times, it also reduces the cost of goods by a goodly portion by eliminating all the taxes that used to go into the cost of making said goods. The final result is a wash at the final retail level.
Anyone still making these kinds of claims really, really need to do some reading. Or they are spreading disinformation on purpose.
Wow, misinformation regarding the Fair Tax. I'm shocked.
First of all, it's 23%
Second, as it's been pointed out many times, it also reduces the cost of goods by a goodly portion by eliminating all the taxes that used to go into the cost of making said goods. The final result is a wash at the final retail level.
Anyone still making these kinds of claims really, really need to do some reading. Or they are spreading disinformation on purpose.
Jeez you neocons and your anal attention to facts. We need to scare people into thinking they will be taxed more and the rich wont pay any taxes.
We have been working for years now to make this myth believable. Don't ruin it now.
The current tax system is top heavy with operating costs etc. We need a more streamlined approach as is used with state and local taxes.
Problem there. Current state and local sales taxes have a penetration rate of about 50%. Some a little more, some a little less. The Fair Tax people assume they can get 100% penetration. If it turns out that they can't beat 50% either, then that 30% surcharge becomes a 60% surcharge in order to maintain an already false claim of revenue neutrality.
And who, by the way, is going to be sending out all those monthly prebate checks to every family in America without any duplicates and without any omissions? Who will keep track of births and deaths? Adoptions? Immigration and emigration? Birthdays? Students studying abroad? Being institutionalized? Simple moves from one address to another? You think the current IRS is expensive and invasive? The Fair Tax IRS will need to know everything about you and every member of your family. The costs of that, well...
A 30% tax being a disincentive? Well, OK, let me clear this up.
People are a little confused because they see 23% and 30%. Both are right, but the former is inclusive like the income tax is and the latter is exclusive, like current sales taxes often are.
"Slapping a 30% sales tax" (or 23% exclusive tax) on things is fine with me, because all of the embedded costs are going to disappear -- embedded taxes like corporate taxes, withholding, and so forth. Market forces will move prices down. It's a wash. Actually it may be better since wages won't be decreased.
A 30% tax being a disincentive? Well, OK, let me clear this up.
Actually, I was pretty clear already on the inclusive/exclusive thing. The proposal is for a 30% sales tax, but since polls show that popular support for flat tax schemes starts to fade once the rate moves past the low 20's, they decided to use the 23% inclusive figure instead. Bottom line is still the same. You buy something new that costs $100, you pay $130 for it.
Speaking of new, what do you reckon will happen in real estate markets as between new and existing homes? On a $400K new home, you'd owe a 30% Fair Tax payment, so you'd actually have to pay $520K to buy it. On a $400K used home, you wouldn't pay any Fair Tax at all. At least not until the mortgage kicked in. If you held a $400K mortgage on that used home, not only would your mortgage interest no longer be deductible, but you'd have to toss in an extra $600 per month as the Fair Tax payment on your new purchases of financial services that the interest component of your P&I represents. Worse yet on that new home...your Fair Tax add-on there would start out at $780 per month...
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Myth?
