Let's get this started...
Instead of just saying this will never happen let us try to hash out if it's a good plan or not.
At this point I simply don't know. I've always ben a fan of the flat tax. Of course that's still an income tax. None of us like income taxes but I guess maybe we're all just used to paying them at this point.
I like the idea of keeping my entire paycheck. Well, would we really be keeping the whole thing? The Fair Tax is just a federal tax. That does nothing to eliminate your state & local income taxes who also have a sales tax as well. The idea that a Fair Tax would tax illegal activity, especially illegal immigrants, probably isn't what we really want to do because it only strengthens the arguement to give legal status or government assistance to said illegals. They would become tax payers at that point. As for the illegal activity...do we really want to legitimize it simply by taxing it instead of fighting the illegal activity? By fighting it we would be eliminating a portion of the tax base. The government isn't about to do that. Plus the idea that there would be some sort of sales tax rebate already suggests a progressive tax in which class warfare would be as prevalant as it is today.
I still lean towards a flat income tax.
here's my idea...
Quote:
Right on the Mark: A Taxing Proposal
Institute a flat income tax rate; right around 10%; eliminate the Social Security tax cap & lower that rate to about the same. While the highest wage earners would get a larger cut on their income taxes, their Social Security contributions would go up. While those earning less wouldn't get quite the reduction in income tax, their Social Security tax would also be going down simultaneously. Of course all deductions would be eliminated. Those making less than the poverty line would pay no federal income tax. Although, they would still make their Social Security contributions. Business taxes should be the same. Even for off-shore companies wanting to do business in the United States.
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Of course my view is rather simplistic but I just don't see the Fair Tax as a workable option.