FairTax

Liza

Liza

New Member
Joined
Apr 3, 2003
Messages
4,355
Reaction score
3
http://www.fairtax.org/

What are the consequences of having this Act passed in USA? It removes income tax, but only taxes your purchases. The more you buy, the more taxes you get. The less you buy, the less taxes you have.

Simply put, the FairTax replaces the way we're currently taxed - based on our annual income - with a tax on goods and services. The FairTax is a voluntary “consumption" tax: the more you buy, the more you pay in taxes, the less you buy, the less you pay in taxes.
It's simple.

Everyone pays their fair share of taxes, and with the FairTax rebate, spending up to the poverty level is tax free. The Federal government is fully funded, including Social Security and Medicare, and you don't need an expert to determine your Federal taxes.
It's simple.
Click to expand...
 
You may find this FAQ section useful as I do. Feel free to find other sources/references somewhere else as well and be sure to let us know about them!

http://www.fairtaxvolunteer.org/smart/faq.html

On H.R. 25— The FairTax Act of 2003

* What exactly will be taxed?
* How will the FairTax affect the various income brackets?
* How will the FairTax affect the costs of good and services?
* How will the FairTax affect my investments?
* How will the FairTax affect Social Security, seniors and retirees?
* How will the FairTax be collected and how will that affect the retail industry?
* How will we pass the FairTax?
* How will the FairTax reduce tax evasion?
* How will the FairTax affect federal government funding?
* How will the FairTax affect charitable giving?
* How will the FairTax affect state taxation?

----more info on FairTax's projected impact: http://www.fairtaxvolunteer.org/smart/industry_impact.html

You may be concerned about taxes being higher than they are now.. actually, the income taxes would be just be removed and this would leave only the consumption based tax that we already have in effect through consumer items, and people will have the choice to pay taxes or not through buying stuff. Hell, we already pay taxes for items... so there's not much of a difference there, and a big difference if the income taxes are removed... leaving only the consumer items taxed as usual. The reason things are expensive like most healthcare and other items are because of the lawsuits and all the taxes companies have to pay for their revenues. In theory, services, and consumer items will be more cheaper if the FairTax Act is in effect. So, it's a cause and effect we are looking at regarding taxes.. and more importantly, how does it feel to keep 100 percent of your paychecks? Plus, people'd get rebates (figured with their household incomes) monthly on necessities they purchase. So this is no burden on the poor.

As for the consumption tax - a proposed 23 percent rate of tax (on goods) will pay for all govt functions, SSI and Medicare. Prices still would drop 20 percent to 30 percent in general.

Alexander Hamilton on Taxation - http://www.fairtaxvolunteer.org/smart/origins.html

Legal Piracy, breaking down with the disadvantages of income tax and the advantages of FairTax - http://www.fairtaxvolunteer.org/news/legalizedpiracy.pdf

A good summary of FairTax - http://www.fairtaxvolunteer.org/smart/sketch.html

More info and links
http://www.fairtaxvolunteer.org/smart/index.html

The choice is yours. Do your research and find what feels right to you and of course, share it with us! :cuddle:
 
I just think in my mind and opioion there shouldn't be taxes, we pay what we have why go for broke all the time and MONEY itself is abt greed, i belive in love and respect and if they want things simple as done, just build it or grow it or sew it, theres the lesser plms and the richer value!
 
javapride said:
I just think in my mind and opioion there shouldn't be taxes, we pay what we have why go for broke all the time and MONEY itself is abt greed, i belive in love and respect and if they want things simple as done, just build it or grow it or sew it, theres the lesser plms and the richer value!
Click to expand...

It would be so nice not to have taxes, but bad news is.......there wouldn't be schools, military, social security, medicare, ect that the Govt gotta provide.

Death and taxes...aint life a bootch eh?
 
FairTax.org

javapride said:
I just think in my mind and opioion there shouldn't be taxes, we pay what we have why go for broke all the time and MONEY itself is abt greed, i belive in love and respect and if they want things simple as done, just build it or grow it or sew it, theres the lesser plms and the richer value!
Click to expand...

We can't reduce the budget of the federal government, without FIRST bringing to light how obseenly expensive the fed gov is. The FairTax will have this expense posted on every retail sales receipt. For every $100 you spend on retail good or services, $23 will be immediatley routed to pay for the big government we've got. Once this ammount is exposed and "in your face", people will be infuriated and vote out big spender politicians. The first step to down sizing the fed gov, it to impliment the FairTax.org plan. Google HR25 and John Linder for more info.
 
I support the Fair Tax but I doubt that it will be implemented any time soon. The IRS system is too entrenched in our government. The IRS people won't give up their job security without a lot of kicking and screaming. :(
 
You may be right. Maybe it's too late. On the bright side, we're up to 55 co-signers, as I recall. That's further than any other major tax reform bill has gotten.
 
Reba said:
I support the Fair Tax but I doubt that it will be implemented any time soon. The IRS system is too entrenched in our government. The IRS people won't give up their job security without a lot of kicking and screaming. :(
Click to expand...

I cannot wait for the day that the FairTax is implemented. That will be a red letter day in the history of our country. Can you imagine every single consumer paying into the consumer-based tax system? Illegal aliens and tourists, too. I cannot think of anything more fair than that. I long for the day when April 15th will be just another day and the IRS and the billions wasted on tax compliance issues will be history. Thank God for John Linder and the FairTax co-sponsors in the House and Senate.
 
I'm all for a "fair tax" but this isn't it.

A fair tax would mean that it would be fair to everyone. The level of services our government provides take TOO MUCH MONEY for it to be "fair" to everyone.

The "FairTax" initiative taxes the poor too high. Rich people really do NOT buy much -- why are they rich? Because they KEEP their money in their pocket, not because they spend a lot. Plus, the rich have resources to spend their money in ways that it will not be taxed -- so the burden is carried by those who pay for the taxed goods

Want a really fair tax? Tax both how much you spend and how much you save. Of course, then those saving will look for ways to save "off the books" or "offshore".
 
Isn't this kinda like the VAT (Value Added Tax) used in hmmmmmm? Europe? There have been these kinds of ideas bandied about over the years and nothing ever comes of it...Reba's right about why nothing's happened.

Dennis, the rich don't spend? If they have, say, a 5 million dollar home, you can bet they will spend at least a half million just in furniture alone.
 
Quote: I'm all for a "fair tax" but this isn't it. The "FairTax" initiative taxes the poor too high.
Answer: Huh? How you figger? The prebates let the poor live totally tax free. They don't even have to sign papers or complete any forms.

Quote: Rich people really do NOT buy much -- why are they rich? Because they KEEP their money in their pocket, not because they spend a lot.
Answer: I've hear that before. "Bill Gates can't possibly spend his money as fast as he earns it." So what? So what if he buys stocks and builds factories with his money? God bless the rich, for they build factories that give jobs to the poor. I think the underlying issue is jealousy. Some people toss and turn at night because someone has a higher salary than they do. Are your children clothed? Fed? Be grateful for what you've got and stop whining because someone's got more that you.

See FairTax.org or Google HR25 John Linder
 
Tousi said:
Isn't this kinda like the VAT (Value Added Tax) used in hmmmmmm? Europe?
Click to expand...
Nope. I haven't studied the VAT idea much at all. Correct me if I'm wrong, but isn't the VAT just a sales tax on each and every step of the production line all the way to the consumer? The ore gets taxed when it's sold to the mill, the barstock gets taxed when it's sold to the factory. The frame gets taxed when it's sold the assembly plant, etc etc until the painted and packaged final product is sold to the consumer. Sure sounds like a lot of overhead expense with all those taxes being calculated and paid so many times. How is that better than simply taxing it once, at the retail level.
Correct me if I'm wrong, but doesn't the retail consumer eventually pay all these VAT taxes (they're embedded) in the price of the product anyway?
See FairTax.org ort Google HR25 John Linder.
 
urgener said:
Quote: I'm all for a "fair tax" but this isn't it. The "FairTax" initiative taxes the poor too high.
Answer: Huh? How you figger? The prebates let the poor live totally tax free. They don't even have to sign papers or complete any forms.

Quote: Rich people really do NOT buy much -- why are they rich? Because they KEEP their money in their pocket, not because they spend a lot.
Answer: I've hear that before. "Bill Gates can't possibly spend his money as fast as he earns it." So what? So what if he buys stocks and builds factories with his money? God bless the rich, for they build factories that give jobs to the poor. I think the underlying issue is jealousy. Some people toss and turn at night because someone has a higher salary than they do. Are your children clothed? Fed? Be grateful for what you've got and stop whining because someone's got more that you.

See FairTax.org or Google HR25 John Linder
Click to expand...
:gpost:
 
What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including a progressive national retail sales tax, a rebate to ensure no American pays federal taxes up to the poverty level, dollar-for-dollar revenue neutrality, and the repeal of the 16th Amendment.

This nonpartisan legislation (HR 25/S 25) abolishes all federal personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. So it is also cost neutral – the final cost for goods and services changes little under the FairTax. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

* Abolishes the IRS
* Closes all loopholes and brings fairness to taxation
* Ensures Social Security and Medicare funding
* Brings transparency and accountability to tax policy
* Allows American products to compete fairly
* Reimburses the tax on purchases of basic necessities
* Enables retirees to keep their entire pension
* Enables workers to keep their entire paycheck
Click to expand...

http://www.fairtax.org/fairtax/about.htm
 
Last edited:
What about the flat tax?

The flat tax and the FairTax share some important similarities. They are both flat-rate taxes that are neutral with respect to savings and investment. The flat tax, however, retains the invasive income tax administration apparatus and can easily revert to a graduated, convoluted mess, as it has many times over many years.

Very few people really understand the flat tax. Its authors will tell you it is a consumption tax that uses the income tax system for implementation. Only an academic or government bureaucrat would dream up a consumption tax that needs the invasive income tax apparatus for its application, when one can simply have a retail sales tax and reduce the bureaucracy by 90 percent or more! In addition, a large part of the burden of the flat tax – the business tax – will remain hidden from people in the retail price of goods and services.

In contrast, the FairTax is simple, easy to understand, and visible. It cannot be converted into an income tax.

Under a flat tax, individuals would still file an income tax return each year similar to today’s 1040 EZ. While this is a simple postcard, the record keeping required to fill in the blanks is still long and burdensome. Under the FairTax, individuals never file a tax return again, ever! Under the flat tax, the payroll tax would be retained and income tax withholding would still be with us. Under the FairTax, the payroll tax, which is a larger and more regressive tax burden for most Americans than is the income tax, is repealed. Under the FairTax, what you earn is what you keep. No more withholding taxes; no more income tax.
Click to expand...

http://www.fairtax.org/fairtax/faqanswers.htm#36
 
What about value-added taxes (VATs), like they have in Europe and Canada? Are they not consumption taxes?

While VATs are also consumption taxes, and better than income taxes, the FairTax is not a VAT. A VAT works very differently. It taxes every stage of production. It is much more complex, and is typically hidden from the retail consumer. Second, in industrialized countries that have a VAT, it coexists with high-rate income tax, payroll, and many other taxes that, in some instances, have led to marginal tax rates as high as 70 percent. Third, all other industrialized countries, except Australia and Japan, have a much larger tax burden than the U.S., which requires higher rates and makes tax administration much more difficult. Lastly, a VAT is a lobbyist’s dream, allowing them to install their loopholes unbeknownst to the purchaser. A retail sales tax, in contrast, is a lobbyist’s nightmare, applied as it is under the bright lights of the retail counter.
Click to expand...

http://www.fairtax.org/fairtax/faqanswers.htm#45
 
Back
Top