Posted on 05/31/2023 8:16:35 AM PDT by SeekAndFind
Let's take a look at the "Fair Tax" and see how fair it really is.
Yes, it would tax health care and health insurance. Why would people think United Health Care, Aetna, other very profitable companies would not only not pay income taxes or payroll taxes, but would also be somehow exempt from the fair tax as well?
Almost everything would be taxed, or else they wouldn't collect the money the federal government supposedly need.
The Fair Tax Act would impose a 30 percent national sales tax
Beginning in 2025, H.R. 25 would impose $30 in tax on each $100 purchase.** Proponents call this a "23 percent tax" because the $30 tax payment is 23 percent of the tax-inclusive price of $130. Yet described in more conventional terms — such as those used for existing state sales taxes — the $30 paid in tax is, in reality, a 30 percent tax on the cost of the goods or services purchased.
The new tax would apply broadly to nearly everything Americans buy, including goods and services often exempt from state sales taxes, such as housing, health care, and groceries.*** The Fair Tax Act includes a "family consumption allowance" that would provide families with a "prebate," calculated as a percentage of the federal poverty level.
What about cars? GM, Carvana, all car manufacturers, and car-dealers would not only not pay income taxes or payroll taxes, but also be exempt from the national sales tax? Only a childlike mind would believe that.
Well, perhaps the monthly prebate will solve the problem for the poor, and that will take care of that. But how many bureaucrats would it take to calculate the prebate, administer it, and send out the money? How would they calculate it for people who don't file income taxes
(Excerpt) Read more at americanthinker.com ...
If “fair tax” means sales tax and sales tax ONLY, it IS a fair tax.
Repeal the 16th Amend.
You would have to repeal the 16th amendment first. No “ lets get this tax in place and we PROMISE to repal the 16th later”.
IMHO, the monthly prebate negates it from being a fair tax. When some people are exempt from the tax, or if the tax doesn’t apply to everybody equally, calling it “fair” is about like calling me anorexic.
Anything that says it’s “Fair”, isn’t.
30% as a starting point.
Get rid of the entire Income Tax code of what? 4000 pages and replace it with a simple consumption/sales tax, that practically every state and county can administer and do so every day for decades...................
RE: a simple consumption/sales tax, that practically every state and county can administer and do so every day for decades...................
How did the USA survive prior to the passing of the 16th Amendment ?
RE: You would have to repeal the 16th amendment first.
How did the USA survive prior to the passing of the 16th amendment?
From what I’ve seen, just about every industrialized country has a General Sales Tax and/or Value Added Tax. In any case, few seem to have the crazy conglomerate of tax codes that we have to put up with in the U.S.
From my point of view, just about anything would be better than our present system. A side benefit would be drastic cuts to the IRS, something we should all appreciate.
Good point. I want to repeal the 16th but indeed, it would have to be done first.
RE: From what I’ve seen, just about every industrialized country has a General Sales Tax and/or Value Added Tax.
Heck, as far as I can tell , every state in the union has a general sales tax.
Repealing the 16th would starve the DC beast.
The Federal government was waaaaay smaller and was financed by import duties.......................
Somebody put in the 23% to kill the thought of this idea.
It should be 10% at the most and tied to the inflation rate. The fed raises interest and inflation goes up?..then the tax rate drops comparable.
Spend next year only what is brought in this year, minus ten per cent to pay down the debt.
FICA should remain outside the box.
They wont ever give up this present income tax though. They got your ass and they know it. They will go to digital currency soon and you wont even control your own money.
They already are alerted when you transfer or withdraw money out of your accounts.
Try that with digital currency. They’ll freeze your accounts and you will have to explain why and what you are doing with YOUR money.
Yeah, getting rid of the income tax and replacing it with a sales/consumption tax would be treat, but how long before they’d try to double tax items that you bought, used, and tried to resell. I mean, a 10 year old refrigerator might garner $100 used, and help pay for a new one, but if the government gets its way, the used market will be basically eliminated for many goods. And, they’d be using those 87,000 IRS agents to make sure that Uncle Sam got his 30% cut.
Not saying it can’t work, but it needs to be a LOT less than 30%. And it has to guarantee that there would be NO income tax at all. And they cannot tax the same item twice or more.
Might be easier to just implement a flat 10% tax on ALL income regardless of a person’s income bracket. Time for those 50% of American deadbeats to start paying THEIR fair share, and 10% should be more than adequate.
Oregon doesn’t, or at least they didn’t when I lived there many years ago.
This is a shining example of government being skilled at screwing up a good idea. Fair Tax is a very good idea. 30% tax is stupid.
Perhaps the government needs to shrink to that size again.
Governs least, governs best.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.