Posted on 02/25/2008 12:51:24 PM PST by Man50D
SUPPOSE A presidential candidate proposed taxing wealth and using the proceeds to reduce taxes on workers and provide a rebate large enough to cover taxes paid by poor workers. Such a candidate would be hailed by the left and reviled by the right.
Thus, it's remarkable that so many Democrats, with the exception of presidential candidate Mike Gravel, oppose the FairTax and so many Republicans, particularly presidential candidate Mike Huckabee, support it. In fact, the FairTax, which replaces all federal taxes with a federal retail sales tax and provides a rebate, represents a way to tax wealth, reduce taxes on wages, and disproportionately redistribute money to the poor.
A sales tax effectively taxes wealth?
It does. When we buy goods and services in a sales tax world, part of the payment goes to sales taxes. So we end up with fewer real goods and services.
Take Mr. Megabucks, who is sitting on $65 million and wants to buy a jet like Oprah Winfrey's - a 10-passenger, $50 million Global Express XRS. Under the FairTax, the jet costs him an extra $15 million because of the 30 percent sales tax. Mr. Megabucks gets the jet, but the extra $15 million, which he had budgeted for Beluga caviar, Dom Pérignon, and other flight snacks, goes to Uncle Sam.
(Excerpt) Read more at boston.com ...
Too bad so many can't seem to figure that out!
A lot less than $50 million if it is taken as a tax deduction on personal or corporate income.
Sitting on? Meaning he's already paid the US. Government around $35 million in income taxes leaving him with that amount to "sit on".
"Mr. Megabucks gets the jet, but the extra $15 million ... goes to Uncle Sam."
So now Mr. Megabucks sends another $15 million to the U.S. Government? Whew! This is "fair"?
Fair Tax Scammers themselves came up with that number. So I was repeating their own number back at them.
either way, this proposal is going nowhere fast.
It is time to come up with a new proposal.
Don't overstate it. That 74 cosponsors is about twice as many as there were back 8 or so years ago when I first got attracted to the Fair Tax, but it sure as hell does not represent any kind of ground swell.
There is still a long, tough row to hoe before we will see Congress seriously consider it. And that is the point when the really tough fight will start.
When all the taxes and compliance costs for every set of hands that touched the production of that new jet are removed Mr. megabucks will pay FAR LESS for that jet, with the FairTax included, than he would today under the income tax!
He’s already paying the taxes incurred by the jet’s manufacturer during the construction of the jet. And the taxes incurred by all the suppliers of parts to build that jet. And the taxes incurred by the raw material suppliers to the parts companies, etc, etc, etc.
Thats what people pay today. Even when spending money thats already been taxed. The FairTax removes all those, and replaces it with the single, itemized, FairTax.
Both systems seem just about as “fair” as the other. Well, except with the FairTax, you know exactly how much tax you pay. No more hidden embedded taxes.
Because Dems like tax cuts for the rich?
43.4 million, over a third of all tax returns, resulted in the filer paying no taxes. In addition, since we're simply talking about federal taxes, any inclusion of local or state taxes has no bearing on the discussion, so, yes, I'd say he doesn't know what he's talking about either, at least in the context of this discussion as presented by yourself.
But, let's take this from the other direction - what FairTax does, aside from the largest re-distribution of wealth ever in this nation by giving out monthly pre-bate checks, brings 121 million people who presently have zero or negative tax liability. And it taxes their rent, their utilities, their gas - just about everything. And should it be implemented on January 1st, 2009, it will become the biggest political tool ever. Forget abortion, forget gay marriage - the winner will be whomever can state that they'd raise the monthly check the most, or reduce the at-register percentage of tax the most, who will 'reduce the taxes on milk by raising it on cigarettes', who will play the strongest game.
Yeah, the original author on this thread is right - this is the biggest liberal boondoggle ever. The supporters have a hope that this will bankrupt the US government and force a drastic reduction in government costs, but instead, it will be used to expand government to unprecedented levels. "But we can all have universal health care, just by raising the tax rate only one half of one percent in the months that end with 'y'. Will you say no to the children?"
Mr. Megabucks would not buy the jet in the US. Thus killing the jobs/businesses of the people who build them.
And the Dom Perignon and caviar are business expenses.
Not so fast. The only person who came up with 7% is ltm. NO FairTaxer, that I am aware of has stated 7%.
Exactly backwards!
The U.S. economy, once freed of the income tax, will boom like no living person has ever seen and virtually ALL of the manufacturing operations which have left the U.S. over the years would come running back!
Kinda like the way Mr. Megabucks shuts down his factories in the US and moves them to China to avoid business taxes. And the way he uses offshore bank accounts to avoid paying taxes on interest.
The US government still gets $0 and in the process, American jobs are shipped overseas.
Democrat = Marxist
Marxist tax system = income tax
You roll over and pay your income taxes don't you?
I could never understand the ginned-up enthusiasm for this untried measure
That's the American spirit! (Good thing the Founders didn't think like that.)
The flat tax is still an income tax.
The flat tax doesn't address the income tax on business or interest which means Mr. Megabucks is still gonna send his factories and his money offshore.
even at 12% it still pays to go outside the USA.
We need a different plan.
A 30% retail tax STILL sends business offshore.
Lower wages AND lower taxes.
I suppose there are some who would say those folks were not telling the truth but I think they would be wrong!
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