Presidential nominee Mike Huckabee has proposed eliminating the IRS and enacting a fair tax.
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.www.fairtax.org
Considering what the IRS costs to operate and the fact that this fair tax would virtually ensure that all citizens pay taxes including illegal immigrants I don't really see a downside. Unless the Government starts heavily taxing necessities like meat, milk, and medication unfairly then that would be a problem. And how would this affect the State governments ability to tax.
But just imagine not having to dread April 15 and never wondering about an audit from the feds.
Why does it seem those who argue for the so-called fair tax (anyone's bs meter ticking yet?) tend to post canned advertisements for the same. They would have us believe it is the greatest thing since sliced bread, and there are no, not any, downsides. If it were so great, why isn't everyone on board? Bowflex will give you those six-pack abs too, you know. Honest. Oh, and if I completely throw out reason, and knowledge, and substitute ignorance and hate, I will perpetuate misinformation, even falsehoods, about those different than me.
I doubt that anybody can predict the repercussions of the fair tax until it is tried out. While I believe that it would directly benefit me (since I am living overseas -- not having to report my income would save me a lot of hassles), I'm skeptical whether the same is true for the rest of the country. But I honestly don't know. Look, for the most part, the tax system works until you get a guy like Bush who thinks he can spend all he wants and at the same time, cut taxes (especially of those who benefit the most from the current system). If we had a more responsible government, there would be no need to try to fix the current system. If you're trying to fix something that is not broken, then you are a liberal. The fair tax is a liberal idea -- anyone who calls themselves a conservative and supports this has redefined "conservative" to mean whatever they want it to mean.
Regardless of my skepticism of the fair tax, I do like Huckabee. Morality and intelligence seems to be a rare combination in politics today. I'm all for giving Hope a second chance. In others, I found a Republican that I like.
Clone why dont you tell us what you dont like about the fair tax. I pointed out just some problems off the top of my head but could find no glaring weakness in the system. It seems like it would be actualy fair. I am not an economist so I am only guessing at the effectiveness it would have.
Matclone, what is in that you do not like about the Fair Tax proposal ? Do you believe that the current system is more equatible to all Americans? The plan as laid out appears to treat the poor, the working poor and senior citizens much better then the existing system. Are there pitfalls and downsides with this new plan that are being hidden or not addressed? I honestly want your input on this. It took a long time for me to get on board with this and only after after reading all the pros and cons that I could find and if I missed something I would like to know what it is.
Because they will know they will get taxed through the roof on every purchase.
Under the current tax system if you are grossing $1,000 a week and the federal government is taking out 25% for federal income tax and 7 1/2 % for social security then your net is $675 to spend or save as you please.
Under the Fair Tax plan you would take home your entire $1,000 to spend or save as you please but anything new that you purchase will have a 23% tax added to the price.
The fact that you have more to spend makes you think that you will spend less?
I know that I left out state and local taxes which in your case and mine are just about the highest in the country but those taxes are there under the current plan and the Fair Tax plan. Nothing changes there. What I did not add into my example is the prebate checks that would be mailed to all wage earners that make it so that the national sales tax, which is what the Fair Tax plan is, would not cause a burden on the poor, working poor, and elderly.
Fair Tax 
Linear Mode
