The Fair Tax?

[Dr. Madd]

Things I believe should be taxed.

I have no problem with a flat percentage (10%) Income tax.
I have no problem with taxing luxuries such as alcohol and tobacco, within reasonable limits, of course.
I have BIG problems with inheritance tax, as it seems double jeopardy, and I never liked the idea of picking a dead man's pockets.
I don't like a tax on Guns or Ammunition, As I've stated, I want to see Taxbreaks offered to Gun owners.

[All American Kid]

with the flat tax you will still have evaders and the shadow economy.

[Oi_Ve]

To expand on that last point by AAK so as to clear up confusion...

The flat tax still runs into the problems of evasion and black market forces. All one need do is perform illegal activities, or get paid "under the table", and they have income which is not taxed (because it technically doesn't exist).
You have these pimps and drug dealers who makes fat wads of cash that will never be taxed, because the flat tax assumes that all income is legitimate income.
This is, of course, untrue.
However, under a national sales tax, it is essentially impossible to evade it. Regardless of WHERE your money comes from, be it gambling, pimping, or selling auto insurance, you will still pay tax whenever you purchase something. So the only way to avoid paying tax is to...

A. Not buy anything (i.e. starve)

or

B. Buy everything on the black market for 200% more than the legitimate price.

The flat tax also has issues of paper work (there is much less than there is under the income tax, but there's is essentially none under a national sales tax.

[Dr. Madd]

Oi: No problem with that, But I still believe Food and Ammunition should be exempt from the tax.

[All American Kid]

You have a tax prebate under the fairtax. The prebate is a check that you will get monthly that covers projected expediters such as food and housing based off of how much you make. Now the ammunition part, if you start including items that are non-essential or specific essential items you are opening back up the door to K-street lobbyist.

http://www.fairtaxvolunteer.org/smart/faq-main.html#3

http://www.fairtax.org/pdfs/FairTax_AffordableHousing.pdf

[Dr. Madd]

You have a tax prebate under the fairtax. The prebate is a check that you will get monthly that covers projected expediters such as food and housing based off of how much you make. Now the ammunition part, if you start including items that are non-essential or specific essential items you are opening back up the door to K-street lobbyist.


But why the prebate? Why not just eliminate taxes on certain items. And Ammunition is NOT a non-essential. Ammunition is a staple, if you're a conservative. Up for a poll. Who considers Ammo a staple?:icon_mrgr

[All American Kid]

If you want to spend your prebate on ammo...well have at it...personally I think the hole idea behind the prebate is to make the tax passable. Those with low incomes do need a helping hand and this a means to do just that. The prebate is a projected consumption of necessities, now what you deem what those nessessities are is your chioce not the goverment's.

[Dr. Madd]

My suggestion for the poor is better. Make them richer. We don't do that by redistributing wealth. We do it by making it easier to start businesses and by making American labor better paid smarter working

[FKLBRLS]

Wait, I'm confused on the prebate. Are you saying the government is GIVING us money? Don't we have to PAY some too? How does it work (be specific!)?

[All American Kid]

My suggestion for the poor is better. Make them richer. We don't do that by redistributing wealth. We do it by making it easier to start businesses and by making American labor better paid smarter working
Totally agree, and agian the fair tax is a stimulus for small buisness which is projected by a Congressional commision (I think in '97) to grow by 10.5%. I did my own self employment for awile and the hardest part was keeping up with the taxes, I got dinged every year then came late penalties etc.. Also the fair tax will end payroll tax on top of income tax another plus for a better paid America.

Also another point. Unlike the current earned income system the prebate does not punish marraige. Therefore promotes that commitment in which statistics show married couples save more money and spend more wisely thus aiding in ending the cycle of poverty.

[All American Kid]

Wait, I'm confused on the prebate. Are you saying the government is GIVING us money? Don't we have to PAY some too? How does it work (be specific!)?
For specifics it’s probably best to check out the FAQ page http://www.fairtaxvolunteer.org/smart/faq.html
It is simply based how much you'll spend on basics, instead of filing all that itemized deduction crap at the end of the year in the endless abyss of paper work to get your lump refund, the prebate saves you that hassle and gives the money back monthly. As we all know it is easier to budget family finances with a monthly check instead of a lump check once a year.

[FKLBRLS]

so it basically divides your deductions from a yearly thing into a monthly thing?

[Oi_Ve]

so it basically divides your deductions from a yearly thing into a monthly thing?

Not EXACTLY, but fairly close.

Based on your status (single, married, married w/ 1 child, etc.) the government calculates the cost of your basic necessities of life (in other words, the bare minimum you would have to spend to survive) per month and you are sent a prebate for that amount each month.
Since the only tax you'd pay would be on purchased items, if you only buy the bare minimum of what you need you would pay no tax.

Example:

Say you earn $500 a month, and you need $200 to live off of. The government would send you a check each month for $200. If you choose to only buy what you absolutely need, you end up paying no tax (-200 + 200 =0).
However, let's say you want a fancy new TV that costs you $100. Now you're expenditures equals $300 (200 for basics + 100 for the TV). You recieve $200 from your prebate, menaing you'd end up paying $100 in tax that month (-300 + 200 = -100).

So basically the "fair" tax taxes one not on income, but rather on lifestyle. If you want a lot, you pay a lot. If you want a little, you pay a little. "Fair", yes?

[FKLBRLS]

I like it. I want it passed. Now.

[Dr. Madd]

Totally agree, and agian the fair tax is a stimulus for small buisness which is projected by a Congressional commision (I think in '97) to grow by 10.5%. I did my own self employment for awile and the hardest part was keeping up with the taxes, I got dinged every year then came late penalties etc.. Also the fair tax will end payroll tax on top of income tax another plus for a better paid America.

Also another point. Unlike the current earned income system the prebate does not punish marraige. Therefore promotes that commitment in which statistics show married couples save more money and spend more wisely thus aiding in ending the cycle of poverty.

I know what you mean. In addition to getting rid of the IRS, I'd like to be rid of Wall Street. Make All businesses non-corporate, or at least most businesses(Retail and fast food being among them)