The FairTax

[Mrs Behavin]

The FairTax is an effort to repeal all federal taxes, including income taxes, medicare taxes, social security taxes, corporate taxes, death taxes, etc. and replace them with a single retail-level sales tax of about 23% inclusive (30% exclusive). This would abolish the IRS, do away with our complicated tax code, get rid of powerful tax lobbying, vitalize our economy and much more.

In contrast to Europe's VAT (value-added tax), the FairTax is only applied at the retail level, instead of being commanded at every stage of production. The VAT (and America's current tax code) means that when you buy a $1 loaf of bread today, you're also helping pay off the taxes of all the companies that helped produce the bread, from the farmers to the supermarkets. In the US, that means about $0.22 of that $1 loaf of bread. Since the FairTax is only applied at the retail level, the $1 loaf of bread becomes a $0.88 loaf of bread, to which the FairTax is then applied. But, you'll never pay income taxes, and according to most economists, you end up with more purchasing power.

What are your thoughts?

For those new to the bill, here are some research starting points:
Americans For Fair Taxation: FairTax.org
FairTax - Wikipedia, the free encyclopedia

 

[IntruderLS1]

Hmm... How do companies pay their share?

 

[NightWarrior]

Its silly to even contemplate things like this. They will never get rid of income tax. How would the government, military, and poor folks get paid? I like the idea of a flat tax rate regardless of income. I don't think its fair that anyone is penalized for making decent money. Why should they have the burden of paying more taxes? Everyone should just pay 15% across the board. Get rid of all write-offs and simplify the tax code. Just makes total sense to me.

 

[Mrs Behavin]

Its silly to even contemplate things like this. They will never get rid of income tax. How would the government, military, and poor folks get paid? I like the idea of a flat tax rate regardless of income. I don't think its fair that anyone is penalized for making decent money. Why should they have the burden of paying more taxes? Everyone should just pay 15% across the board. Get rid of all write-offs and simplify the tax code. Just makes total sense to me.

:withstupid:

 

[icecuban]

I cannot believe someone started this thread, I just starting getting into this like a week ago, when I was reading about what that guy Gravel thought about (pres), and I read all about this tax, and I'm like, hell yeah, screw the irs, and all those bogus companies, people would know exactly what they made every year, and spend it only on what they knew they could buy. The more people in this nation are treated the same, the more we can all see eye to eye i think.
What was nice too, was he was in support (this was years ago) of an annual guaranteed income of 5 thousand dollars, wouldnt that be wonderful! and they do this in like, portugal already (over a period of time). I mean, think about it, the rich dont get richer, they dont care about 5 grand. the middle love it, helps all across the board. There are people who need a thousand dollars just to be out of debt, and they would fee like a complete load was taken off their shoulders, and would be more happy, and work harder,lol.
Even the homeless would have some money. I know some people just cant stand the thought of that,lol, but come on, how much do you really care about what the homeless do, get more liquor?, and stay on the street?, like most people care about that....

 

[icecuban]

And I live in NH, we dont even have retail taxes.