Replies

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He he he he ... I WISH it was regressive. It isn't though. Necessity spending is exempt from tax.
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It is regressive.

I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100.

That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system.

We need a flat tax.

It is regressive.

I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100.

That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system.

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.

If lower income people are dumb enough buy more than they can afford (like an expensive boat), they are screwed under ANY tax system.

Using your thought process, simply the act of buying milk is regressive: I earn $100, you earn $50. My milk costs me 3.5% of my earnings while it costs you 7% of your earninsgs. HEY! Milk is regressive! LOL

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.

It is regressive. I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100. That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system. We need a flat tax.

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.

I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100. That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system. We need a flat tax.

Wrong. Correct is "you make $10,000 per year and I make $100,000 per year and I buy a boat for $1,000 and you don't because at $10,000 per year, you have no business buying a boat, at 10% tax then I pay $100.

Your entire idea of "regressive" is incorrect and by that sort of reasoning the lower earner gets an "unfair" benefit from the prebate compared to the higher income earner since with the same family size (but different incomes) they have the same prebate.

The FairTax is certainly not "regressive" as a tax and can be more fairly described as proportional. I see though, that several posters have spotted the fly in your ointment.

Necessity spending is exempt from tax. '

They create the lists. 'They' tax me for buying juice, but not milk at the same prices.

Our own government should not be taxing its own citizens.

Only tax illegals and visitors!

Loans, according to the Bible, aren't supposed to be at interest.

"I you make $10,000 per year and I make $100,000 per year and we both buy a boat for $1,000 at say, 10% tax then we both pay $100.

That $100 is only 0.1% of my income and 1.0% of your income. That's a regressive tax system. "

No, that is a fair tax system. Why should the second man pay more sales tax for the same thing?