Fair Tax questions

[Fatboy Joe]

A fair tax I think would devistate the economy including slowing production, which would cost jobs and increase even more importing.

A consumables tax would cause people to consume less or purchase used goods decreasing the demand for new goods. The lower demand would push supply up which in turn lowers sales price and lowers profits. How do you get those profits back? Reduce the manufacturing costs by having 10 year olds in the Bangladesh make it.

 

[Garand]

A fair tax I think would devistate the economy including slowing production, which would cost jobs and increase even more importing.

A consumables tax would cause people to consume less or purchase used goods decreasing the demand for new goods. The lower demand would push supply up which in turn lowers sales price and lowers profits. How do you get those profits back? Reduce the manufacturing costs by having 10 year olds in the Bangladesh make it.

Do you not think that if the typical American family were to bring home their entire paycheck that they would spend any less of it month to month?

I'm sure most of us have gotten a pay raise at some time in the past and thought to yourself that I'm living pretty comfortable right now, I'm going to put whatever percentage my raise is into savings. All is good for a bit then somehow someway you're back to paycheck to paycheck wondering where your raise went?

A big percentage American people will spend every penny they get paid week to week, month to month.. Americans are consumers.

Sure, if people need/want to save money they can stop buying things, but I'd wager these folks will be the exception not the norm.

 

[Blinocac200sx]

I guess it depends on your definition of fair. If you think it's unfair for someone to pay fewer taxes than someone else, but have less money to invest, then sure, it's unfair. On the other hand, if you see the fact that someone else just happens to have more, and because they are purchasing more, even though they are using no more of the governments resources than anyone else, they are paying more in taxes, and still have plenty left over to invest, and think, "well that's alot closer to fair than before" then perhaps you like the fair tax. Personally, I think every citizen of these states should pay the same amount of money. None of this percentage crap. I'm no more or less a citizen than you just because I earn more or less than you.

 

[Shootin 4 Fun]

wait

You're telling me its not fair if we all pay the same %? Please don't pizz on my leg and tell me its rainin.

again wealthy is not=income people.

No, I'm just telling you why it will never pass.

 

[SoonerStatePawn]

You guys should read the Fair Tax book by Neal Boortz. The Fair Tax would be the best thing to ever happen to the US economy. It's a Fair Tax anyway you look at it. We all pay tax on new merchandise, including cars, homes, electronics, etc.. If you buy used, you pay no tax. The tax is inclusive, not exclusive. You go to Walmart and see a TV for $499.99, you pay that price. Tax will be included in the price seen. The Fair Tax totally replaces the IRS, and all Federal Taxes out there. No more endless taxes that no one really understands. The rich obviously buy more stuff, meaning they pay more taxes. The poor/middle income people spend less, paying less in taxes. There are no loopholes with the Fair Tax. If you are here illegally and working a cash job, you are no longer avoiding income tax. The government will get that tax when you spend your money. ALL citizens will receive a rebate from the government depending on the size of your household to reimburse you for taxes on necessary items, ie; food, clothing, etc... You cannot simplify the tax code any easier than the Fair Tax. Also if you think about it, companies would stop flocking overseas to avoid tax. There would be no corporate taxes, reducing prices, creating a large amount of job growth, and making the USA the new tax shelter of the World.

 

[Shadowrider]

I don't like the fair tax because it's too similar to what we already have in that there are things like the "prebate" that congress can jack with. Pick a number and everybody pays that percentage. Now that's fair. Then leave that number the hell alone and the .gov can just spend what it takes in. Simple huh?

 

[SoonerStatePawn]

I don't like the fair tax because it's too similar to what we already have in that there are things like the "prebate" that congress can jack with. Pick a number and everybody pays that percentage. Now that's fair. Then leave that number the hell alone and the .gov can just spend what it takes in. Simple huh?

Congress jacking with the prebate, is no different than Congress jacking with the flat tax %. They are always going to find a way to screw taxpayers.

 

[Fatboy Joe]

Do you not think that if the typical American family were to bring home their entire paycheck that they would spend any less of it month to month?

I'm sure most of us have gotten a pay raise at some time in the past and thought to yourself that I'm living pretty comfortable right now, I'm going to put whatever percentage my raise is into savings. All is good for a bit then somehow someway you're back to paycheck to paycheck wondering where your raise went?

A big percentage American people will spend every penny they get paid week to week, month to month.. Americans are consumers.

Sure, if people need/want to save money they can stop buying things, but I'd wager these folks will be the exception not the norm.

I agree 100%. But I also believe that we don't have a pure economic system, other factors will play into the mix

 

[Perplexed]

The Fair Tax totally replaces the IRS

This part alone would ensure that any Fair Tax bill will not pass Congress.

 

[mugsy]

If we are lucky, IF, we may get back to something like what Ronald Reagan was able to work - a simplified version of the current income tax system - with only perhaps 3 brackets - low of 5%, middle of 10%, and high of 15%. That is still technically a "progressive" tax system but it isn't a bad compromise from a Conservative point-of-view.

I personally believe that the income tax should be repealed because it provides a theoretically unlimited source of income for day-to-day activities to the Federal government - i.e. we should stop the beast by cutting off its food supply. However, I consider the chances of that happening to be nearly zero so I am willing to find a reasonable compromise. The "flat-ish tax" I mentioned above - or something like it - might be that compromise.