America is not ready for a Bold Idea like the Fairtax....Bullfeathers!!!
By Mason Day Posted in User Blogs — Comments (2) / Email this page » / Leave a comment »
Radical: Marked by a considerable departure from the usual or traditional (Webster's Dictionary)
The Fairtax will never pass Congress because it's too radical.
Nonsense...before the current tax system was implemented the entire government was funded by taxes on alcohol, carriages and some consumer items such as sugar and tobacco. (Fairtax Book). The Fairtax is not a radical idea but a return to the basics.
We are replacing personal and corporate income taxes and FICA taxes with an inclusive 23% sales tax on goods and services. Prices for the goods and services should remain within 1-2% of the original. When you include the rebate which Americans will get each month we won't be paying the 23% tax on basic necessaries. The entrepreneurs and small businesses which compose 60% of our economy, will immediately be able to plan on growing their businesses rather than expending resources on tax compliance.
The only people who truly fear the Fairtax are politicians who use the system to reward and punish people and corporations and the K street lobbyists.
If you want lobbyists reform pass the Fairtax. If corporations aren't paying taxes they don't need lobbyists.
One other point to ponder. If the Fairtax were in place today every time an illegal immigrant purchased an item in the store they would be paying Federal taxes.
Do your own research (The Fair Tax HR 25/SB S25 www.fairtax.org).
It's up to you to decide, real change or continue with the current system.
In the Fairtax world it will take two people not one in order to "cheat" making it more unlikely to happen. Sixty to seventy percent of retail comes from large corporations like Wal-Mart. I don't see these corporations putting their neck on the line to save you the consumer from paying tax. Noone said that dishonest people (in the current tax system) would magically become honest once the Fairtax becomes law.
The Fairtax also isn't a sales tax in the way we normally think one would be. You don't buy a shirt at the store and have state sales tax added and the Fairtax added at the register. The Fairtax is already in the price of the shirt.
The Fairtax is also revenue neutral meaning not only will the government still collect the same amount of taxes to run the country as it does in the current tax system. It also means that prices of good and services will change very little due to the fact that hidden taxes that are in the price of goods now will be gone and replaced with the Fairtax. So to say that if the Fairtax passed tomorrow that the price of everything in the store would increase by 1/4 is just not true. As a matter of fact current inventory would not be taxed at all.
The Fairtax is also progressive in nature because of the prebate feature built into the system. No one actually will pay any tax up to the poverty level of spending based on the size of your family. After that the tax is progressive from 0 to 23%. In order to be paying taxes at the full 23% tax rate one would have to spend in excess of 1.5 million dollars a year.
Stay informed and get the facts at http://www.fairtax.org
illegal behavior and ways to get around this but...
I could see a lot of smuggling, tax evasion and border hopping shopping in this scenario (we will have to build 'the wall' to keep people in!).
The reason sales tax works now is that it is still just a small part of the purchase. The larger that percentage becomes the more unscrupulous people will skirt the system. The more people skirting, the greater the burden it puts on those obeying the system as well.
It's my personal opinion that when any Tax reaches 10% and beyond people will start thinking about how to get around it. 23%... nearly a 1/4 addition to the price? Calamity ensues.