Quote:
Originally Posted by Adept1
The wealth penalty someone mentioned. You only will pay taxes on what you buy if your money stays in accounts and draws interest or if you make money by investing you will not be paying taxes on it. There will also be a lag period while instituting the plan.Graduated tax system: The rich spend more and thus they WILL pay more in taxes.
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Yes..BUT..many of us see the fair tax as double taxation and not as the answer to our prayers. We already paid taxes on much of the money we acquired over a lifetime. Now they want to tax us when we spend it...
I'm certainly no "expert" in this field but one would think the so called Fair Tax would encourage a barter system! People may well just trade goods and services,no money changes hands..they could avoid paying "any" consumption tax
In addition..The FairTax proposal assumes a 100 percent tax base on consumption. By way of contrast, most states that have sales taxes have roughly a 50 percent tax base.
With the FairTax’s 100 percent base, consumers would pay taxes on a great many things that may not intuitively seem like consumption.
The list would include:
Purchases of new homes
Rent
Interest on credit cards, mortgages and car loans
Doctor bills
Utilities
Gasoline (30 percent in addition to current taxes, which would not be repealed)
Legal fees
The Fair Tax needs work..I have not made up my mind on this plan. It has potential but it may also create new and creative ways for us to avoid paying any tax at all. In that...there is some merit...
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