I will say, I’m not a big fan of the rates I’ve read regarding the Fair Tax, like 20-ish percent tax. I’ve seen as high as 22 % and I think it’s all WAY too much. I think it’s all based on the idea of maintaining current spending levels. If we restrict the spending to Constitutionally mandated and approved items, there wouldn’t be a need for such an ocean of cash rolling into the treasury.
In fact, the government, needing to stay out of the way as much as possible to GET tax revenue, should get smaller, and I think the tax rate should be no higher than 10% ever. Maybe 5%. If they whine, that means they’ve had their hands in the cookie jar too long.
I’m also not sure about the prebate tax thing. Giving everyone enough to cover the tax on living expense to make sure we don’t hurt the poor... seems circular. I have to think that through some more. But if I’m right about the level of taxation needed, the poor really won’t be hurt much, and the prebate may not be necessary at all. I don’t know.
Personally I think every dime in taxes I pay is way too much.
Having said that, I'm at 39.6% on Federal taxes already. 22% for me would be a pretty dramatic reduction in my taxes.
Now, add the additional 3.5% I pay in Illinois, and another $8,500 in real estate taxes (schools, roads, etc..) here in Illinois and I'm paying just under $60k/yr. in taxes. I don't have a home mortgage deduction (house is paid for ...) and I "make too much" according to the IRS to be able to deduct my kids. Go figure, they're not the "tax breaks" they're supposed to be after all.
I DO NOT MAKE $250k. In fact, FAR LESS. I don't even make $200k. My wife doesn't work. I'm the sole bread-winner. I have one son going off to college in the next year, and another son in three years.
They're not into sports, and they don't qualify for any "assistance" because I (get this ... ) "make too much money."
Having just under $60,000 stolen from me every year by the State and Federal Governments sure doesn't make me fee like I "make too much money."
Given I'm paying 39.6% to the feds now, 22% for me is a tax cut - and I'll take it.