To make this system fair for low-income Americans, all taxpayers would receive a monthly "prebate," so no one would pay taxes for consumption up to the poverty line. On payday, every American would receive 100 percent of his or her paycheck, minus any state income taxes.
When someone spends above necessity the sales tax rate would be 23%. That means that basic necessities would be tax free, and no income, property, or death taxes.... In other words, if you just wanted to take care of necessities and pay no taxes at all, you could do it. Also, you would never involuntarily pay federal taxes. Oh, and it would virtually eliminate lobbyists, special interest, and the expenses associated with the IRS. Is there a problem with this?
Yes, just one. It would never be passed because the politicians want/need their jobs as well.
Unfortunately you are probably right. If you are, then we are hopeless as a nation because any truly meaningful solutions will likely run into the same obstacle.
Right now there is so much polarization between the left and the right, that nothing is being accomplished. This is why I'd like to eliminate all the old, and replace with new, but then I am called a Teaparty advocate.
Right now there is so much polarization between the left and the right, that nothing is being accomplished. This is why I'd like to eliminate all the old, and replace with new, but then I am called a Teaparty advocate.
I likely am the same.... And surely you realize the "idea" in my first post isn't my idea... Or a new one for that matter.
Yes, I understand. There are many of us who have the right answer, but have no podium to make a stand. There are also some really good politicians out there, but again, either because of being with the wrong party, or not having enough money in the bank, or not hob-knobbing with the correct people, will remain silenced forever. All I know is we need a major change.
I would go for a % sales tax on anything sold within US borders, eliminate income taxes altogether. and everybody would pay the same % be they rich, poor, famous or common Joe Dufus like the rest of us.
You're talking about "FairTax". Which sounds good, until you start looking at the various ways to scam the system.
Ways like the entire "prebate" system - every other government benefit system is already scammed; the Fair Tax system proposes the creation of a benefit system affecting *every* taxpayer.
Ways like hiding taxable, personal expenses as non-taxable business expenses.
Furthermore, the 23% number is disingenuous. If a 23% sales tax were enacted today, we'd expect to pay $123 for an item. This is called "tax exclusive" - the taxes are excluded from the sales price, then added in at the end. FairTax proposes a 23% INCLUSIVE rate. That same $100 item will now cost $130 total, and 23% of that total ($30) is the actual tax. As sales taxes are generally exclusive, FairTax should be claiming a 30% tax rate, not a 23%.
There are a number of other problems.
Incidentally, "every American" assumes only employees. For contractors and small businessmen, there are only greater costs.
You're talking about "FairTax". Which sounds good, until you start looking at the various ways to scam the system............................................ .................................................. Furthermore, the 23% number is disingenuous. ......
There are a number of other problems.
Incidentally, "every American" assumes only employees. For contractors and small businessmen, there are only greater costs.
Perhaps you are correct. Even with it's possible percieved flaws, I believe that a system similar to this that removes alot of power from the polititians is a good system. Currently I couldn't begin to tell you what my true tax rate is. By that, I am talking about every dime of mine that goes to the government including all fees, income taxes, SS, sales taxes, embedded taxes, and whatever else is hidden.. I would like to know, and I think that our current system is awful. It is difficult to understand and it is decided by politicians who pays what, who gets what, who gets this break, who doesn't, it goes on and on..Our current system encourages and feeds corruption and inequity. I want a system with a set of parameters that are straightforward and unchanging.
Those that oppose such an idea will dwell upon supposed flaws in it while ignoring all the flaws, scams, loopholes and graft the current system provides.
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