Posted on 08/12/2006 5:59:58 AM PDT by Man50D
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That is incorrect. With the FairTax, each household gets a sizeable "prebate" up-front each month which covers necessities (though presumeably not boats as in your extreme example). The same tax rate applies to all purchases. People with lower income get all their taxes covered by the prebate.
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That rebate only covers up to poverty level of living. And my ecxxample is not extreme. If you purchase any thing for $1000, then the person who makes more money pays less percent tax of their income on it.
We don't need a fair tax, we need a fair tax.
This would have to include the elimination of 40,000 pages of tax code too.
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Your example doesn't work. People who make more generally spend more, hence they are taxed more. If you are spending a lot on that income, you have more problems than just taxes.
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My example does work. And it shows the major flaw of the fair tax being a regressive tax. And all of your "ifs" make no sense.
With the fair tax people who make more pay less percent of their income on taxes per each item that those who make less.
That's a REGRESSIVE TAX!
1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all rights of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.
6. Centralization of the means of communication and transport in the hands of the state.
7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.
8. Equal obligation of all to work. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country.
10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education with industrial production, etc.
But it would create the worlds largest entitlement system to compensate. Everybody would be on the dole.
I support politicians who want to scrap the IRS and the IRC.
However, that is entirely different than putting one's name on a petition list that says "please audit me."
The former is effective. The latter is just begging to be a tax audit martyr.
10% of a dollar is $0.10. Doesn't matter if you have 10,000 dollars or 100,000 dollars. Don't compare apple to oranges by applying what is bought to the income of the buyer. You just want to punish people that have more.
Another good way of explaining your "flat" tax is "From each according to his means , to each according to his needs". Sound familiar?
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10% of a dollar is $0.10. Doesn't matter if you have 10,000 dollars or 100,000 dollars.
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*sigh*
You need to look at it as a percent of your income. Those who make more pay a less percent of their income, per item, than those who make less.
People making less are taxed at a higher percent rate of their income.
The Fair Tax is regressive.
Democracy works until the poor realize that they can vote themselves rich people's money.
You miss quoted me and are replying to something that I did not write.
NO! I don't need to look at their income because I AM NOT A SOCIALIST! I do not believe that the haves should be forced to pay more than the "have less". Your thinking is flat out socialist, no way around it.
I see your argument. But you are missing the obvious. The people at the lower end of the scale now pay little or no taxes now other than their local sales tax. Yes the tax they pay commenserately will be a higher percentage of gross income than yours, but they are now paying something, where they were not under the current plan, or under the flat tax. Remember all of those low wage earners will now get their full paycheck. Someone making $100,000 a year, probably is doing a fair bit of itemization and won't be paying taxes on that portion of their income. There will be millions of people who are brought into the tax base, that are not paying now. People who are on the high side who tend to hide their income, will no longer be doing so. People who make their funds illegally, will no longer be able to hide, when they buy that Cadillac Escalade for cash. The Fair Tax is the only way to go. The Flat Tax will only be more of the same.
Regressive in the context of taxes means the rate of taxation increases while the base used to calculate the tax decreases. For example, the payroll tax is regressive. That is, the less you earn, the higher percentage of payroll tax as a ratio of income. Payroll tax is the tax, income is the base.
Under the nrst, taxes are based on spending, not income.
Someone who spends less will have a lower rate. That is not regressive. In part this is due to the rebate function of the nrst (which I could do without).. But to be clear, the nrst (as proposed in HR 25) is not regressive.
Quick! Send everyone an NRST entitlement payment to level things out!
Silly ass reasoning on your part. To start with no one who makes 10,000 is going to buy a boat for a 1000, it would take all their money just to eat.
The person who makes 100,000 is going to do what all people do when they make more money, spend more. The rich person will spend more then the poor person. Besides your percentages are off, they are both paying the same percent tax, which is 10 percent.
You are falling into the trap of putting the percent on wages which is BS. The flat tax will deteriorate into another progressive income tax, the one we have now started as a flat tax imposed "only on the rich" which at the time was 5000 per year. Didn't stay that way for long it went to progressive and during the war went up to 90 percent and stayed that way for many, many years after the war.
Any income tax is evil. A fair tax, or any type of sales tax, is the only "fair" tax, it taxes people on what they spend not on what they earn.
This country existed for over a 100 years without an income tax and can exist quite nicely without one again. Down with the IRS and any time of income tax, including a crappy flat tax.
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