You mean, like taxing the income provided by Social Security checks?? No way OUR government would do anything THAT stupid!
I did read the entire article.... and, I think most of it is hogwash. Economist on BOTH sides of this are grasping at straws due to the complexity of the calculation required to understand the impact of such a massive change... I think, it's probably impossible to do.
For example: The article intentionally scares the reader by raising the example of having to pay a 30% tax on the purchase or a house... or car. What they don't say is.... the CURRENT price of a house or car includes substantial costs for.. guess what?... income taxes. Under the Fair Tax, primary producers are exempted from taxation... so, the COST of nearly everything will be greatly reduced.
Here's the test... My family is, fortunately, fairly high up on the IRS wage scale... yet, my final federal tax bill is only ~ 20%. If the Fair Tax is SO REGRESSIVE .. meaning lower and middle income people are going to pay so much more... how would my tax rate be increasing by 50%?? It just doesn't make sense. If so.. the government will be buried in money.
The article did, however, point out a serious flaw for me. This rebate based on income means... people will STILL have to prove their income!! Not having to do THAT is the whole point behind the Fair Tax. The better way to reduce the regressiveness of the tax is to exempt food. Lower income people spend a much higher % of their income on food.
Until this problem is corrected, I guess I do NOT support the Fair Tax as it is currently written.
The article did, however, point out a serious flaw for me. This rebate based on income means... people will STILL have to prove their income!!
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What happened to everybody getting the same rebate? Wasn’t that the original plan?