This tax plan would give a huge boost to our economy and would dramatically increase the job base in America.
Many jobs move to other economies every year to escape our regulation and taxes. This movement creates a job shortage. So companies are able to pay us workers less because there are fewer jobs than job seekers.
Not only are we being paid less than we’re worth, but then "our" government comes in and takes our hard earned money. They take our hard earned money based on how much we make so that the harder we work they get a larger portion.
With an influx of new jobs from this new economic system we would move from having a labor surplus to a labor shortage. This would drive wages higher. In addition to earning higher wages, the american worker would get to keep their whole paycheck. It just seems like a smarter way of supporting business growth. Businesses would drive our economy and lead us into prosperity.
The fair tax has a prebate which is supposed to supplement everyone up to the poverty line. Your Grandpa would be elligible for this prebate, and so would not pay taxes on his absolute necessities.
I think the biggest issue I see against the fair tax is exactly the purchasing of goods in other countries. Tax avoidance as they call it. I don’t know what they would do about it, but we will have plenty of IRS agents available for employment (jokes). Seriously though, the overall economics of the system make sense. They would dramatically increase the work of free market capitalism. I just don’t know what would stop me from going to Canada to buy a Chevy for a quarter of the cost of purchasing it here.
whoops…I mean a quarter off the price of the chevy….
Democrats don’t like it because it takes power away from the government and requires more individual responsibility.
February 18th, 2010 at 6:48 am
I do….bring it on!
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February 18th, 2010 at 7:07 am
Because empirical data and historical precedent is more complicated than that. Actually, it flatly contradicts this theory.
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February 18th, 2010 at 7:18 am
So explain how the government pays for anything?
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February 18th, 2010 at 8:08 am
It’s not just taxes that big companies are trying to avoid. Americans are a lot more expensive to employ than citizens from other countries. We demand so much from our employers while citizens of other countries demand almost nothing. To them it’s a no-brainer.
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February 18th, 2010 at 8:35 am
Democrats don’t like it because it takes power away from the government and requires more individual responsibility.
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February 18th, 2010 at 8:44 am
you’re preaching to the choir brother, one day hopefully others will too.
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February 18th, 2010 at 9:17 am
fair? I’m for it but the liberals will never want to be fair.
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February 18th, 2010 at 9:26 am
Yes, I agree with the theory. The problem would be dismantling the IRS (which I’m all for, btw). Government doesn’t usually want to eat it’s own. Not sure how we’d accomplish implementing the fair tax.
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February 18th, 2010 at 9:43 am
We don’t have chit in our eyes.
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February 18th, 2010 at 10:01 am
No one wants to pay taxes, fair or unfair. Everyone wants to eliminate the IRS. But we all want government services: police, roads, laws, judges, mail, soldiers, national parks, airports, safe food & drugs, etc. etc.
You will be able to keep your whole paycheck, but everything you buy will cost more because it will be subject to higher sales tax.
You don’t get something for nothing
(Contrary to stupid conservatives that think you can cut taxes, shrink governent and still spend billions in Iraq)
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February 18th, 2010 at 10:17 am
What about my Grandpa that has retired. He has already earned all the money he ever will, and he has already paid the taxes on it once. He has just enough to get by as it is, are you saying that it is fair to tax old people twice so we flood the market with older workers that are trying to survive?
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February 18th, 2010 at 10:55 am
the poor and middle class would bare the brunt of all tax burden, the upper 2% spend only small percentages of their income on goods and service, but the working class spend 90% or more that is not a fair system, the ones who have the money spend large amounts to get better tax breaks they would have more money to corrupt the system.
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February 18th, 2010 at 11:36 am
I do not see how the fair tax would do any of what you propose.
The fair tax is a tax on all new products and services. That means the only way I am taxed is when I consume something.
But if instead of buying locally I purchase what I need from outside the United States I completely avoid the tax.
This would encourage me to outsource everything I can because it would be cheaper.
If I am wrong please explain to me how.
Personally I am a bigger fan of the flat tax system.
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February 18th, 2010 at 12:22 pm
Because any advantage would be greatly outweighed by the problems created.
Forget the fact that it is a regressive tax, implementing it would be a problem.
Get rid of the IRS?
Who would collect the sales tax?
Who would go after non compliant vendors?
Who would police the enormous black market that will arise.
The Treasury Department would become enormous.
Not to mention the rise in cost of all goods and services across the board.
The fair tax would only be "fair" to those who have everything they need already. That is why they are pushing it.
Now, a flat tax across the board, no exceptions, no exemptions. That would be fair, and it would shrink the IRS.
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