The Fair Tax is NOT a vat tax.
A vat tax is a hidden tax on profits.
The Fair Tax is a national sales tax that replaces income, payroll, capital gains, and corporate taxes.
Oppose the Fair Tax if you like, but don’t lie about it.
That way everyone pays.
No special political favors can be given.
If we must be taxed, the (true) fair tax as you have stated it, is the ONLY fair tax available.
I still need to clarify one nagging point on the Fair Tax.
I’ve paid taxes on my income all my life and have managed to put away enough in savings for comfortable support when I retire.
Now, no one pays income tax, but pays higher tax on everything bought. Pffft! There goes any advantage of having a tax protected nest egg.
A tax on profits would be a corporate income tax.
Fair Tax will be 23% the first year. Then . . .
25% the next year
27% the year after
30% the next
an up and up, and up and up . . . .
'cause no matter what tax system is in place, government cannot be trusted.
“The Fair Tax is NOT a vat tax.”
So true. There is a big difference. The proponents of the Fair Tax plan for it to replace the payroll tax and all income tax even on Corporatations. So you would pay a sales tax on any “new items” you purchase. There would be no sales tax on a used car or a pre-owned home. This is different from a VAT tax which is a progressive tax. Everyone would get a “pre-bate” check at the first of every month to re-imburse them up to the poverty line so that the poor are not unduly burdened. The VAT tax hits everyone and is in addition to all other taxes including the income tax.