fair tax proposal

[sidewayzS13]

do u think the fair tax proposal is a good idea or something that will never work?

[fredjacksonsan]

I think details/links are needed, for those of us (like me) that haven't kept up with it.

I think a fair tax would be 10% on everything you buy. No income tax, no personal property tax, just a sales tax. 15million mansion? Yes, Mr. Moviestar, you pay 1.5M in taxes. Done.

[clawhammer]

Originally Posted by fredjacksonsan

I think a fair tax would be 10% on everything you buy. No income tax, no personal property tax, just a sales tax. 15million mansion? Yes, Mr. Moviestar, you pay 1.5M in taxes. Done.

I would think that they would pay more than that on a 15 million dollar house, don't they?

10% sounds good to me. Currently I pay 6% on everything + income taxes.

[clawhammer]

I just did a quick search, and the tax rate would have to be about 23% if we were to move to that.

[Twitch1]

It has been a lofty goal of all citizens to be unshackled by the IRS and see it done away with. If it would work it would make life ao much simpler. I think there would be a ripple effect and things not immediately apparent would be positively affected.

[fredjacksonsan]

Exactly; we could get rid of most of the IRS, saving the US Govt a big load of $$ each year. Your taxes would be on your receipt. Big corporations (like GM, which paid no taxes a couple years ago) would be paying taxes instead of finding loopholes with which to write off everything. Wealthy and poor would be treated alike - on what they spent. Of course the system would have to be adjusted so that necessities like (inexpensive) clothes and basic food wouldn't be taxed, but there are complications with every solution.

[SnoopisTDI]

A few things I don't like about the FairTax:

1.) Waiting for a monthly "refund" check for necessary goods like food and clothing- just another thing for the government to hold over your head.

2.) They use some "fuzzy math" to determine the tax rate. If untaxed price is $1.00, and the taxed price is $1.20, they would call it a 16.6% tax instaed of the 20% tax that it is. If it's such a good idea, WHY LIE?

3.) You know there will eventually be some crisis, and the IRS will be back again, to collect income tax, on top of your "fair tax."


But I'm not ruling it out.

[sidewayzS13]

it would be a federal income tax that we would all pay.
perks coorporations wont be taxed so prices go down so we will be paying about the same possibly less for goods
only taxed on what you spend. so the money you are saving wont be taxed.
its fair plain and simple
the rich get taxed more cause they spend more
and the poor still get thir way out of taxes w/ the refund

[codycool]

The federal government might approve a flat tax rate, but there is no way in hell the states are going to give up their property taxes. Thats how they survive.

[Franko914]

Originally Posted by codycool

The federal government might approve a flat tax rate, but there is no way in hell the states are going to give up their property taxes. Thats how they survive.

Ummm, folks, codycool has pretty much hit the nail squarely on the head. Not just the states, but the counties and some cities, too, rely heavily on (property, school, water, sewerage, etc.) taxes to keep things operating on the individual's level. Those will most probably stay.

On the federal level:
-- Flat rate tax collected at the tills for individuals
-- IRS-collected taxes for businesses

I could already see regulations/enforcements at the till-level to minimize, if not, eliminate non-payment to the feds of tax monies "collected."

How do countries that collect GenSvcTaxes in this manner manage/handle this and other issues?