Posted on 04/18/2006 10:26:47 AM PDT by Eaglewatcher
I miss CHIEF_Negotiator.
I just posted this in another fair tax thread, but it bears repeating.
23% is way, way too high. Add that to the 8%+ that some states steal in sales tax plus the state level income taxes, property taxes and other nonsense fees and you'll pull the typical American into a 35% overall tax bracket.
If the 23% were it then I'd be okay, but it's just the Federal portion!
15% tops to start and then lower it as government gets cut up and parted out.
Then you can count me as a supporter.
EXACTLY!! I have been saying this for awhile!
It sounds great until you stop to think that its not the "only" tax we will be paying!
When you also consider that the state and federal government can raise these percentages at any time to whatever they want I think that we are in great danger.
For instance, After reading the fair tax book I came away believing that there was alot to it that would work but I kept thinking..."why would anyone buy something new when you could buy used and not pay sales tax?"
A new car would have this huge sales tax attached to it but a used one none. Same with everything! Even with more in my paycheck i'm still going to be budgeting because all in all its not a decrease, they are just shifting the burden. Therefore I will most likely never get to have nice new things because i won't be able to afford the taxes and settle for someones hand me downs.
They actually add 30% sales tax. 23% is what they call an 'inclusive tax rate'. On a $100 item, they add $30 of tax. They come up with 23% by dividing the $30 tax by final cost $130. It's FairTax Deception 101.
So a item priced at $100.00 would cost you $129.87 plus applicable state and local sales taxes.
And that tax applies to items that weren't previously taxed, like food, prescription medicine, and rent.
What are you going to do when your rent goes up 30% on day one of the Federal FraudTax?
23% is way, way too high...
Do you spend every penny of your income on goods? Since I spend much less than 10% of my income on goods, then that 23% would be equivalent to less than a 2.3% income tax, not 23%. That means instead of the > 50% total tax burden I shoulder now, it would be about 35% (or less if state income taxes go away) which would be a lot better!! Think about it...
"And that tax applies to items that weren't previously taxed, like food, prescription medicine, and rent"
Don't forget that the Fairy Tax would be on all services too, like doctors visits, attorney fees, auto repairs (parts and labor), and.....................
Neither FairTax nor Flat Tax, or any other meaningful tax reform, will occur in either of our lifetimes. This is just populist drivel for the sheeple.
The current tax industry and its benefactors are far too entrenched and powerful to allow such sweeping change.
Agree with you but on any $100 item you're probably paying $23 in hidden taxes that are being passed on to the consumer now.
Congress doesn't write tax law, lobbyists that pad congresscritters' wallets do!
I agree - 23% is too high.
The reason that the FairTax is set up that way is to make it "revenue neutral." I don't want "revenue neutral" I want less government spending and lower taxes.
I support the FairTax in principle but would not want to see it go into effect until the income tax amendment is eliminated first, spending is cut and the tax rate is reduced.
Yes and no. The fairtax researcher who came up with that number did so by including taxes paid by the employees. Yes if you take all those taxes out, there might be 23% worth. But are employees going to take a pay cut? Are owners going to want to make less? No. Taking out income taxes paid directly by the employee, there is only about 7-8% hidden taxes.
Well, by all means, do nothing then.
The Fair Tax would indeed get people who are not paying income taxes to pay tax.
Also, remember that if the Fair Tax replaces the income tax, we will be buying EVERYTHING with pre-tax dollars. We'll have more money to start with, if there's no withholding.
I do tend to agree, though, that there are issues to work out, and that we don't have the political will to pass it in any event.
The fairy tax should be renamed the "Shift 100% of all taxes to the consumer" tax.
I'm completely baffled at the lack of comprehension and understanding of 'Fair Tax' on the part of some freepers. If you actually think you will spend more on taxes with the fair tax, you are completely ignorant. The amount of tax you pay would drop significantly, and the federal governments revenue will actually increase as well, just as the congressman put it. Illegal immigrants will now be forced to commit to our federal tax, and as well as tourist visiting. Anyone who can honestly disagree with fair tax, needs to read the book before blasting the same hype from the nay-sayers in Washington who are afraid of losing more power.
I think most of us do. He was a fine person. Perhaps the FairTax should be named the "CHIEF negotiator memorial FairTax bill" (or something like that).
I wonder how you say that in Cherokee? CHIEF always said he was part Cheokee and would throw in some Cherokee words from time to time.
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