FairTax good medicine

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  • Let's review the facts
    July 17, 2008 7:55 p.m.

    First of all, the FairTax is not regressive at all, since everyone is refunded for spending up to the poverty level under the FairTax. As for those that think the rich somehow don't spend what they earn, well, what planet are you on? Not only that, but even if an affluent person only spent 20% of their income this year, who is to say that they wouldn't spend 500% of their income the next purchasing a house, for example. Everything but used items (no double taxation of sales) would be taxed, so anything a rich person buys would be taxed, as long as it's new. Last I checked, those with money typically buy new, those without don't, and would not be taxed on such items. All earnings are eventually spent, and if it is kept in capital investment for a long duration, then so be it. Our country needs all the investment it can have. Not only that, but under the FairTax a good share of the $11 Trillion (yes Trillion with a T)in assets in off-shore holdings with better tax treatment, would come back to the US and significantly bolster our economy both now and in years ahead.

  • A better fair tax
    July 17, 2008 6:34 p.m.

    If we are going to have a national sales tax, then we need to add to it an annual rebate where every citizen gets back about $5000 or so per year so that the sales tax isn't regressive.

    This has all the advantages of the "fair tax" minus the regressiveness of the "fair tax".

    This truely would be a fair tax.

  • jackhp
    July 17, 2008 9:56 a.m.

    Just for fun let's see what the "Fair" tax does to the price of gas. Let's assume a current price of $4.184/gallon (including the 18.4 cents/gallon Federal gas tax.) The Federal gas tax goes away with implementation of the "Fair" tax so now we're at $4.00/gallon. Times that by the 30% "Fair" tax rate (yes, it IS 30% calculated on top of the retail price of goods) and you add $1.20/gallon in "Fair" tax. Total purchase price for gas? $5.20/gallon . . . that sounds great to me!

    Plus, keep in mind, every time the "price" goes up another dollar, it's really going to go up $1.30.

  • Get Informed
    July 17, 2008 9:15 a.m.

    The fair tax is a consumption tax not an income tax. One of it's main objectives is to eliminate the IRS (enforcement). Taxes are collected at the at the point of sale and forwarded to government. It's not a 30% tax it's a 23% tax. There are provisions for poor, and the last time I checked basic needs like food and clothing were tax exempt.

    Even if it's superiority were limited to just eliminating the IRS and freeing us from involuntary servitude, that would be enough for me. But for the first time Americans get to keep 100 % of their income allowing for more leveraged investment and better financial planning. In other words Americans can start saving and investing their money before the IRS plunders it.

    The 23% is based on what this monstrosity of a government needs today. It should be 10 percent and government should be forced to live within it's means. As was mentioned in an earlier post it will take new blood in Washington to get it through because of the tax lobby who need a complex miserable tax system so their industry can thrive. The fair tax idea has around since the 80's.

  • Ultra Bob
    July 17, 2008 8:55 a.m.

    Aside from all the arguments that say the "Fair tax" is not a fair tax, consider a couple of other things.

    First, every retail entity becomes a tax collecter. My barber, my doctor, the bus company etc. etc. etc. If the IRS is a big organization think about how big an organization might have to be to track and audit all the tax collecter under the fair tax.

    Second, If a check is mailed to every household every month, just how big will the data base have to be and how much month to month maintenance will have to be done.

    Think about jumping out of the frying pan into the fire.

    The income tax, if we could take out all the provisions for tax criminals and tax cheats would be the most fair way to support our government in a Capitalist economy.

    How about we make taxes totally voluntary. That way people who support the government would pay all the taxes and people who do not support the government would not pay anything. Under this system the government might try harder to be a government dedicated to the people.

  • Dave
    July 17, 2008 8:14 a.m.

    The fair tax proposal is revenue neutral, if you think a 23% tax is high, guess what, you are already paying that much. All of the statements against this proposal come from an ignorance of the facts.

  • DBG
    July 17, 2008 7:43 a.m.

    @Fair Tax is not Fair: You need to study the issue a little more. There are probates for the lower income levels that essentially exclude them from paying taxes. Most people are not aware of this part of the FairTax.

  • uncannygunman
    July 17, 2008 7:05 a.m.

    The tax system will never change until you find something equally profitable for the accounting/tax attorney/tax prep folks to to do with their time. You're talking about putting a whole employment sector out of business, and they won't like it one bit.

  • liberal Larry
    July 17, 2008 6:27 a.m.

    Does the writer of this letter really think a regressive 30% sales tax is what the country needs. If you add the 7% state and local sales taxes you will be paying 37% fon some purchases. Can you imagine the enforcement apparatus that will have to be set up to make this goofy project work?

  • Fair tax is not fair
    July 17, 2008 3:56 a.m.

    A fair tax would indeed be good medicine. However taxing the CEO who makes 10's of millions 20% of his pay, while you charge the young single mother of 2 20% of her pay 20% is not a fair tax.

    Remember there are multiple ways to have a flat tax.

    1. Charge each citizen the same number of dollars.

    2. Charge each citizen the same percentage of income.

    3. Give each citizen the same financial burden. $500 from a young single mother earning near minimum wage is a huge burden. 50% of pay of a person earning millions every year will hardly be noticed.