Then what would an INCOME tax be classified as other than a tax on success? Or even cap gains taxes, for that matter - successful investing is taxed.
First, it’s about the point of impact. We are used to getting hit with the tax on our paycheck and the only time most Americans (the voters) think about it is tax time. If you pay a very noticeable amount every time you go shopping, well that is not going to be very popular. It’s call psychology, and it’s a factor. It could impact consumerism as well, something "Fair Tax" foes will point out, and it is a big deal in all this.
The second part is equity, and this is the deal breaker right here.
Two identical families with 75,000 in income. We go under the “Fair Tax”.
One family lives and enjoys the trappings of success, because that is what our economy is based on. Nice clothes, cars and the like. We make those things to sell and we buy them as a nation.
The other family buys used, used clothes, used cars and all that. They live like paupers basically.
Who pays more in taxes?
Under the current system all is equitable, all is fair as far as tax burden among peers. Forget everything else about the system as it is, for get the “SQL” crap, just take a look at the burden. That’s what we will be dealing with.
Under “Fair tax” the family who lives well (which is most middle class Americans) will end up with the bulk of the tax burden.
Now you will say (you all do) that it is by choice, that the first family can ‘cut back’ or just deal.
Well let’s look around you, do you see the malls, the merchandise. Do you think the majority of American’s want to cut back? Do you think that would be good for our economy?
You are right, family one has a choice, and I guarantee you that it will be to not support the “Fair Tax”.
Americans will not accept a tax on success, especially one that does not split the burden equally.
There are more than a few other ‘deal breakers’ but that’s the biggie and renders the rest moot.