Actually, fair tax isn't fair at all, not to the poor, not to the middle class. The rich buy very expensive things, take crazy vacations and own multiple homes, but for the crazy rich, like the news anchors that make 5-10 mil a year and the CEOs that make even more than that, they don't spend anywhere near 5-10 mil a year. Most of it gets invested. You can't tax investing, not on the front side anyway, that will reduce investing, which destroy our economy. The middle and poor classes will pay the lionshare of taxes, just like we do know. Example-
Bob makes 5 mil a year, and spends 2.5 mil a year to live. The other 2.5 is saved and invested. He pays taxes on the 2.5 he spends.
Steve makes 65k a year. In order to support his family, he spends 60k a year. He saves the $5,000. Steve is disproportionally taxed on the 60k. It isn't as much as Bob has paid, but it hurts Steve's family more, they have less to spend, and should pay proportionally less in taxes than Bob.
Jill is poor. She is a single mome with 3 kids. She makes 17k working as a cashier at Wal-Mart. She is on food stamps. Jill spends all of the 17k she earns on rent and clothing for her children. She's taxed on her entire income. Since Fair tax is based on sales tax, Jill gets screwed.
Fair tax doesn't work. If fair tax was put into place, it would further widen the gap between the rich and the poor. The tax code is something like 10,000 pages long, it needs to be revised, but fair tax doesn't work. End double and triple taxation (taxing lottery winnings 3 times for example), close loopholes and be fair. Big business should pay the lion share of tax in the country anyway, not that anyone in Washington has the balls to do it.
I know a lot of you think fair tax is fair, but it isn't. The problem all along is that the rich don't pay their taxes. You can't blame the rich for taking advantage of loopholes, they are there, you might as well take advantage of it, there is a reason they are rich, they have figured out how to take advantage of the system. Fair tax won't change that, but it will increase how much YOU get taxed. I am self-employed and run 2 small businesses. Without taking advantage of the current tax system, I would pay massive amounts of taxes even though I don't make that much money. In my mind, the fair taxes involves being taxed in a progressive rate compared to your income and household size. A family of 5 w/ a household income of 65k should pay less taxes a single person making the same. Both should pay less proportionally (income to tax ratio) compared to a guy making 5 million.
Bob makes 5 mil a year, and spends 2.5 mil a year to live. The other 2.5 is saved and invested. He pays taxes on the 2.5 he spends.
Steve makes 65k a year. In order to support his family, he spends 60k a year. He saves the $5,000. Steve is disproportionally taxed on the 60k. It isn't as much as Bob has paid, but it hurts Steve's family more, they have less to spend, and should pay proportionally less in taxes than Bob.
Jill is poor. She is a single mome with 3 kids. She makes 17k working as a cashier at Wal-Mart. She is on food stamps. Jill spends all of the 17k she earns on rent and clothing for her children. She's taxed on her entire income. Since Fair tax is based on sales tax, Jill gets screwed.
Fair tax doesn't work. If fair tax was put into place, it would further widen the gap between the rich and the poor. The tax code is something like 10,000 pages long, it needs to be revised, but fair tax doesn't work. End double and triple taxation (taxing lottery winnings 3 times for example), close loopholes and be fair. Big business should pay the lion share of tax in the country anyway, not that anyone in Washington has the balls to do it.
I know a lot of you think fair tax is fair, but it isn't. The problem all along is that the rich don't pay their taxes. You can't blame the rich for taking advantage of loopholes, they are there, you might as well take advantage of it, there is a reason they are rich, they have figured out how to take advantage of the system. Fair tax won't change that, but it will increase how much YOU get taxed. I am self-employed and run 2 small businesses. Without taking advantage of the current tax system, I would pay massive amounts of taxes even though I don't make that much money. In my mind, the fair taxes involves being taxed in a progressive rate compared to your income and household size. A family of 5 w/ a household income of 65k should pay less taxes a single person making the same. Both should pay less proportionally (income to tax ratio) compared to a guy making 5 million.
