Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Man50D
It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption.

This is the main problem with the Fair Tax--the ability to explain it and sell it to the Average Joe. The Fair Tax "user interface" is a debacle. Boortz et.al. should have tested their idea on focus groups and refined it to make is easier to understand. As it is, they're now flailing about trying to thwart an onslaught of criticism that just creates a cloud of confusion in an already confusing concept.

13 posted on 01/20/2008 7:03:13 AM PST by randog (What the...?!)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: randog
"It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption."

But you haven't finished your explanation to the Average Joe. His "effective" rate is less than 23% because of the prebate, an amount that will vary from household to household, sufficient to offset the Fair Tax paid by the poor -- but everyone gets it. Even Donald Trump and Rush Limbaugh will get a check every month!

(If the Average Joe was smart he'd wonder why "the poor" need this prebate when "the poor" are paying 20-25% in hidden taxes today and are not getting a check to offset those taxes.)

26 posted on 01/20/2008 7:45:11 AM PST by robertpaulsen
[ Post Reply | Private Reply | To 13 | View Replies ]

To: randog
This is the main problem with the Fair Tax--the ability to explain it and sell it to the Average Joe. The Fair Tax "user interface" is a debacle. Boortz et.al. should have tested their idea on focus groups and refined it to make is easier to understand. As it is, they're now flailing about trying to thwart an onslaught of criticism that just creates a cloud of confusion in an already confusing concept.

I can't believe that you said that! The basic plan of the Fair Tax is one of the simplest-to-understand ideas I have ever run across.

Anyhow -- if you think it's complicated, try reading the present tax code -- even the damned IRS can't get it straight.

27 posted on 01/20/2008 7:54:50 AM PST by Turret Gunner A20
[ Post Reply | Private Reply | To 13 | View Replies ]

To: randog; All
It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption.
This is the main problem with the Fair Tax--the ability to explain it and sell it to the Average Joe. The Fair Tax "user interface" is a debacle.


They could probably do a better job of explaining it. The whole "It's really a 30% tax" debate is stupid, because it turns out to be the exact same amount (23%) under the current system or the FairTax...

• Say someone makes $10,000/year. In the current set-up, 23% is taken out of that person's paycheck, equaling $2300 and leaving them $7700.

• Under the FairTax, same person making $10,000/yr would be able to buy $7700 worth of goods, paying $2300 in taxes.

Critics like to claim it's a 30% tax because 30% of $7700 is $2300. But in comparing apples to apples, it's really a 23% tax on your INCOME in either scenario.
33 posted on 01/20/2008 8:27:48 AM PST by Knock It Out
[ Post Reply | Private Reply | To 13 | View Replies ]

To: randog

I can’t believe you think the Fair Tax is complicated. Compare and contrast it to the income tax, the above the line deductions, below the line deductions, credits, progressive rates, estimated tax filing deadlines, etc.

The current system is nothing short of INSANE. If we were designing a system from scratch and the stated objectives were to make the system as difficult and onerous and hard to comply with as possible, WE COULDN’T DO A BETTER JOB THAN WHAT WE HAVE RIGHT NOW!!!!!!!

To workers, we need to explain this: No more Federal Income Taxes or Social Security or Medicare taxes will be taken out of your paycheck. Instead, you’ll pay taxes at the point you buy goods and services. So that you don’t pay taxes on essentials, every month you will receive a prebate equal to the amount of tax due on basic necessities.

What is so hard about that?


65 posted on 01/20/2008 9:22:28 AM PST by DivaDelMar
[ Post Reply | Private Reply | To 13 | View Replies ]

To: randog
The FairTax is very simple and easy to understand but of course if you have a bias against it you'll never understand it - because you don't wish to.

In fact, most people understand it quite readily when I've explained it in townhall meetings, etc. The concept is already familiar in the form of sales tax. And they grasp the differences unlike the attackers who pretend not to.

384 posted on 01/21/2008 6:28:21 PM PST by baybabe
[ Post Reply | Private Reply | To 13 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson