Posted on 01/23/2011 7:27:20 AM PST by jmaroneps37
When my financial advisor gave me a lot of caveats about the new Fair Tax surfacing in Congress, what I really heard him saying was, “You can’t trust government.”
The unintended consequences of the proposed Fair Tax are pause for alarm because “when they sell a Fair Tax, they don’t tell you about other taxes” that will conveniently remain on the books.
“In theory if the government says they’ll take away all other taxes, do they?”
The Fair Tax is a misnomer in Europe. The income tax was not abolished when they added a VAT value added tax or Fair Tax. The problem is, they are suffocating the average European citizen.
A United Kingdom VAT of 17.5% on top of a 50% income tax totals a 67.5% fed to the amorphous blob; in France: VAT 19.6%, income tax 40%, total 59.6%; Greece: income tax 40%, VAT 25%, total tax 65%; Spain: VAT 16%, income tax 45%. In Sweden a 25% VAT plus a 55% income tax results in an eye popping 80% tax individuals feed to the government wow! Denmark’s 83% is even worse!
”The United States is heading right down the same path,” my advisor tells me. Initially our current administration looks to propose a minuscule amount of only 1% or 2%, just like Europe started out imposing. Our 14 trillion dollar debt load is not sustainable, but he stresses VAT economies are deeply mired in gargantuan debt loads as well.
The American notion of hard work and perseverance enables anyone to get ahead here. “Do you think that can ever happen with tax rates between 60% to 80%?” he asks.
What would our lives be like with the European model of Obama’s redistribution of wealth? Consider never being able to buy a home....
(Excerpt) Read more at coachisright.com ...
A tax on profits would be a corporate income tax.
ow some people have the idea they want to tax me again when I use the money in retirement that I was already paid taxes on?
Actually, you wouldn't let that happen, you would expatriate and take all of your wealth with you and spend it in another economy. The Fair Tax is the most efficient way to motivate wealth to flee the country.
It eases my mind quite a bit that my congressman supports it. His record is second to none when it comes to taxes.
He was the founder of Michigan’s “NO” caucus and never once voted for a new tax or tax increase in his 14 years in the state senate.
Since a VAT doesn’t have anything in common with the FAIR Tax, I have to agree.
The Fair Tax is more like a national sales tax that replaces all other federal taxes (personal and corporate income taxes, capital gains, social security, etc.). And, unlike a VAT, the Fair Tax is visible and above board, right there on the receipt.
I don’t trust congress to implement the Fair Tax as written and the 7 yr sunset is too long.
Nothing stops them from a repeal and replace bill that substitutes a VAT for the Fair Tax once everyone has gotten used to it that pulls the rug out from under the repeal of the 16th ammendment.
As a small business person, I don’t care to be the government tax collector. People should be doing their own tax forms and paying their own taxes. The Fair Tax is another burden on small business, especially start ups.
I’d rather have a flattish tiered income tax of 5, 10 and 15 percent with a personal exemption of 50K and absolutely NO other deductions.
In fairness, I've seen engineers, managers, educators, etc., do the same thing. I think it let's them believe that they are not just technicians. How it impacts the result is often immaterial.
I have the best, most conservative with conviction congressman that anyone could ask for.
Michele Bachmann
Mine is Tim Walberg 2 time freshman congressman.
In 08 the local paper wouldn’t endorse him because he wasn’t bringing enough money into the district. In 2010 the same paper endorsed him because he wasn’t promising to bring money to the district.
It took less than 2 years for people in Michigan’s 7th district to get fed up with the marxism of Mark Schauer.
“It is a tax system DESIGNED for savers.”
But it screws those who have been savers for decades and now want to live off that savings. The tax man took money from me as I saved and now a new crop of tax men want to take it from me a second time. It was NOT “DESIGNED for savers”.
In 2010 the same paper endorsed him because he wasn’t promising to bring money to the district.
I had to do a double take on THAT one. : )
Your decades of saving will be worth far more in a system that rewards investment - and therefore increases the measure of your savings. The increases in return on investment created by the resulting economic boom will more than offset taxation that targets consumption.
Besides, the resulting change to rewarding investment could very well save this economy, and your savings with it. If we remain under the present system, how long will it take before the current gov’t confiscates your savings ‘in the national interest’?
How “fair” will that be to you?
That would be true for those still working. But if you are already retired, were a saver and now have little-to-no increasing earning potential, it's not such a great deal.
Now I'm not saying that the Fair Tax is a bad thing.... only that it is not a boon to those who are no longer able to save but did so when they were young enough.
Under the current system, when you take money out of your pension or 401K it is taxed as income. Therefore you will not get dollar out for dollar in.
There will be a tax credit for the basic cost living in the Fair Tax.
You will now be taxed on what you spend, not what you invest or gift.
Asking for more money than revenue we produce is called taking from someone else.
Better to tax less, produce more, and decide for ourselves how money is spent in our homes and the district.
This is the upside of the Fair Tax to me. It is tax free to save. However, my concern is the rebates to households. If the IRS is abolished, then how do they administrate sending checks to all households on a monthly basis when there a a large number of errors in the distribution of SS? I don’t like the dependence on government to send all households checks. Why collect money and then pay to give it back?
A couple buys a house, raises a family, retires, and decides to downsize. Today, a $500k capital gain from that sale is exempt from tax. With the new unfair tax tax man at the door, that couple has to pay taxes on all that gain throughout retirement.
Yep!
Keep it close to home when possible and everyone comes out ahead.
Me thinks that was the original idea with the founders.
The only people who are against the Fair Tax are the ones who are living off the present system.
If things dont change, and they stop spending and the printing of money, in one year ALL YOUR ASSETS will be confiscated by the federal government to continue operating and giving perks to the gimme class. That means all your savings, all your retirements and every single bit of savings you managed to save.
It will be for the greater good dont you know!
With extra high unemployment many will not be paying any income tax, the so revenue for the gov’t. So whatever money they do get, from savings I.E. they will pay the fair tax on it and get a refund of so much a yr.
Face it, the issue is uncontrolled spending. This fairtax/unfair tax is just shifting the burden around. Those who want it will benefit from it. Those who will get screwed by it will oppose it.
CUT SPENDING!
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