The Fair Tax is the only way to go

[miles]

One of my favorite subjects. People who hate it are the IRS, tax attorneys, taxocrats, and politicians who rely on class warfare for votes. I've yet to see any reasonable, factual, and logical opposition to it.

The FairTax Act:

Repeals the all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes.

Imposes a revenue-neutral national sales tax on all new goods and services at the point of final purchase for consumption. Business-to-business transactions and used products (which have already been taxed) are not subject to the sales tax.

Offers a universal rebate in an amount equal to the sales tax on essential goods and services so that no American pays taxes on the purchase of necessities.

Results of the FairTax:

Dramatically reduce the costs of goods and services by 20 to 30 percent.

Allow you to keep 100 percent of your paycheck, pension, and Social Security payments.

Gross Domestic Product will increase by almost 10.5 percent in the first year after enactment.

Compliance costs would decrease by 90 percent.

Real investment would initially increase by 76 percent relative to the investment that would be made under present law. While this increase would gradually decline, it remains 15 percent higher than under the existing tax structure.

Exports would increase by 26 percent initially and would remain more than 13 percent above the level under the current tax system.

Real wages will increase.

The working poor would experience an increase in real lifetime consumption of between 8 and 14 percent.

Increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency.
Interest rates will fall 25 to 35 percent.


http://www.house.gov/linder/fairtax.htm
http://www.house.gov/linder/editorial_future.htm

 

[Problem Child]

This a sales tax, but you have to keep track of all your "essential goods and services" purchases to get a rebate (i.e. not be taxed) on them?

 

[sunstruck]

Does it get rid of Inheritance Taxes? I am admittedly ignorant of the subject.

 

[RawHumor]

Does it get rid of Inheritance Taxes? I am admittedly ignorant of the subject.

It would. Basically, if you don't spend any money, you don't pay any taxes.

 

[Problem Child]

Does it get rid of Inheritance Taxes? I am admittedly ignorant of the subject.

Translation: I have rich parents and don't want the government ripping off my hard-inherited jack.

 

[miles]

Translation: I have rich parents and don't want the government ripping off my hard-inherited jack.

No. Translation: My parents have worked their asses off all their lives. When they die, the tax on their assets could be so high they could (and do) dissolve a business or personal real estate.

 

[Problem Child]

No. Translation: My parents have worked their asses off all their lives. When they die, the tax on their assets could be so high they could (and do) dissolve a business or personal real estate.

Miles, it was a joke. Haha.

 

[miles]

Miles, it was a joke. Haha.

Hey. Taxes aren't funny. Redwave is funny. Not the ha-ha funny, like a clown.

 

[Problem Child]

Hey. Taxes aren't funny. Redwave is funny. Not the ha-ha funny, like a clown.

Everything can be funny, miles. You must learn this.

I like a straight 15% flat tax. No rebates, no loopholes, for anybody.

 

[sunstruck]

Translation: I have rich parents and don't want the government ripping off my hard-inherited jack.

Yeah. And? lol



Actually it's not that. What bothers me about it is the money has ALREADY been taxed. When it was first earned it was taxed. To tax it again just because it's changing hands is stealing in my opinion.

 

[RawHumor]

Actually it's not that. What bothers me about it is the money has ALREADY been taxed. When it was first earned it was taxed. To tax it again just because it's changing hands is stealing in my opinion.

That's it. Turn in your DNC card at the door. Welcome to the dark, but logical, side.

 

[bluemuse]

Wouldn't this hurt the accordian file industry? All of those poor accordian file makers out of work....

 

[miles]

Everything can be funny, miles. You must learn this.

I like a straight 15% flat tax. No rebates, no loopholes, for anybody.

It's a better alternative to what we have now, but the revenues wouldn't compare with the national sales tax. There are gazillions (a liberal word) of uncollected taxes from people who never file. Cant escape the fair tax.

 

[miles]

Yeah. And? lol



Actually it's not that. What bothers me about it is the money has ALREADY been taxed. When it was first earned it was taxed. To tax it again just because it's changing hands is stealing in my opinion.

Of course it's stealing! So is income tax.

 

[sunstruck]

That's it. Turn in your DNC card at the door. Welcome to the dark, but logical, side.

How many times do I have to tell you I AM NOT A DEMOCRAT???

 

[Problem Child]

It's a better alternative to what we have now, but the revenues wouldn't compare with the national sales tax. There are gazillions (a liberal word) of uncollected taxes from people who never file. Cant escape the fair tax.

So what? They would collect the 15% by mandatory witholding if necessary, and you would get a return of any overpayment, just like now. The only people the IRS would have to worry about would be the self-employed, and since the tax code would be virtually eliminated, they could use virtually ALL their resources toward catching the few stupid enough not to file.

Easy, nothing to keep track of. A one pages tax return with about five questions on it. If you can figure out 15% of your gross income, you can do it yourself.

Under the sales tax system you're talking about I would have to keep hundreds, maybe even thousands of receipts to get my "rebate on essential items", no? That sounds like a bigger (or equal) hassle than the current system to me.

 

[sunstruck]

Of course it's stealing! So is income tax.

No it's not. It's payment for things like police, firemen, schools etc.

 

[LukkyKnight]

Fair tax. If we can agree such a thing is actually possible, then we can surely agree that is is superior to the unfair taxes.

 

[Mona Lisa]

Why not just exempt essential goods and services from the tax in the first place?

 

[The Heretic]

Everything can be funny, miles. You must learn this.

I like a straight 15% flat tax. No rebates, no loopholes, for anybody.

Agreed; if you have a rebate/deduction/exemption for anything, then future Pols/lobbyists/reformers are going to want to add other rebates/deductions/exemptions, and eventually we are pretty muc hback where we started; tax givebacks for all sorts of popular but illogical reasons.

As Sunstruck said, taxes are to pay for public works and the costs we incur by having a government and a society. Taxes are not for making sure everybody is equally miserable. We incur costs to society for the "essential goods and services" just the same as we do for the non-essentials, and society doesn't owe us "essential goods and services" any more than they owe us non-essentials.

 

[busybody..]

Sorry, will never happen!

While on the surface it appears to make sense, and the economic stimulation seems impressive........

There are way too many in the Tax Industry....IRS, Accountants, Estate lawyers,etc........that would lobby against it.......

The Real Estate Industry as well........Cant eliminate the mortgage tax, and property tax, you know........

So, best to forget this brainchild........

 

[The Heretic]

Why not just exempt essential goods and services from the tax in the first place?

First, because society doesn't owe us "essential goods and services" any more than they owe us non-essentials.

Second, because who defines what these "essential goods and services" are? When you buy into the proposition that there is something that society owes us beyond protecting our Natural Rights and leaving us alone otherwise, then you get people who say there are essentials beyond food, shelter and warmth. They say that health care paid for by society is an essential service, they say communications and transportation are essential services, and on and on.

It is just better to make a clean cut with the whole idea that there should be anything exempted from taxes for a social reason. The purpose of taxes are to pay for the costs we incur by being members of society, not to enact social reforms or policy.

 

[Problem Child]

Re: Sorry, will never happen!

While on the surface it appears to make sense, and the economic stimulation seems impressive........

There are way too many in the Tax Industry....IRS, Accountants, Estate lawyers,etc........that would lobby against it.......

The Real Estate Industry as well........Cant eliminate the mortgage tax, and property tax, you know........

So, best to forget this brainchild........

Yeah, just like the end of slavery, the elimination of polio, and the invention of the airplane, it's a great idea, but it'll never happen.

Might as well just forget it. Come on guys, let's go sulk.

 

[A Desert Rose]

No. Translation: My parents have worked their asses off all their lives. When they die, the tax on their assets could be so high they could (and do) dissolve a business or personal real estate.

This is a big concern of mine regarding my children.

I agree with Miles' fair tax initiative. Why don't you run for something that I can vote for?

And another thought: Why don't the people we elect see things as clearly?

 

[LukkyKnight]

Re: Re: Sorry, will never happen!

Yeah, just like the end of slavery, the elimination of polio, and the invention of the airplane, it's a great idea, but it'll never happen.

Might as well just forget it. Come on guys, let's go sulk.

You're one of those people who objected to bringing the plumbing indoors, aren't you?

"Outhouses are called that because they're outdoors, son. Don't you go bringing that stinkin stuff into MY house; I don't care where you studied engineering. I've been out there in the summer and you do NOT want that any closer to where you eat and sleep than it has to be. Damn college boys anyway."