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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!
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.
read my tag line
NO its not!
The working poor may not pay income tax,But they pay S.S. and F.I.C.A. and that can be a killer when you are trying to pay bills. Especially when they are self employed which they pay twice as much.
The fair tax would be the greatest thing for the working poor in this country. When they get paid they get all of their check,ALL of it plus the prebate.
I think your problem is you seem to have a problem with successful people,that or you make allot of money and feel guilty about being successful.
Look it us sometime. The FairTax isn't regressive, but should rightfully be call a proportional tax system.