The Fair Tax does away with the payroll tax and the IRS. It also includes a monthly “pre-bate” up to the poverty line to keep it from being oppressive to the poor.
The Fair Tax does not do away with State and local taxes. But remember that the Fair Tax is only on things you purchase not on every dime you make. It is also only on new items. If you want to avoid the tax on an auto then buy a 1 year old car and you pay no tax. Same deal on a home or anything else. This is not a VAT tax. Items are only taxed one time when they are sold new.
The general premise of the Fair Tax is that since Companies currently embed about 22% into their product prices to cover taxes they will through competition lower the prices of products about that much shortly after the Fair Tax goes into effect so in the end prices will come down and with the tax you will end up not paying much more than you do right now.
The Fair Tax does away with the payroll tax and the IRS. It also includes a monthly “pre-bate” up to the poverty line to keep it from being oppressive to the poor.
IS THAT A FAIR TAX? HELL NO! It means us working stiffs still have to pay for the 40% who don’t pay any taxes today and sponge off us with the welfare system. You change nothing...nothing at all.
You must believe in Unicorns and Obama.
The general premise of the Fair Tax is that since Companies currently embed about 22% into their product prices to cover taxes they will through competition lower the prices of products about that much shortly after the Fair Tax goes into effect so in the end prices will come down and with the tax you will end up not paying much more than you do right now.More unfounded Fairtax BS parroted.
they will through competition lower the prices of products about that much shortly after the Fair Tax goes into effect so in the end prices will come down and with the tax you will end up not paying much more than you do right now
Even if that was true, it explains replacing the 22% business taxes. However, it doesn't explain how the personal income, social security, medicare, self-employment, gift, all the other taxes AND the pre-bates are paid for with a 23% rate... on reduced prices.
Do you think all the talk of 22% embedded taxes is a Fairtax lie, or do you think the rate to replace all the taxes is the lie...or maybe the reduced prices.
If there's anything "embedded", its lies in selling the plan.