If it retains the socialist...er "pro-gressive" nature of the current tax code it isn't very fair, now is it?
Fair? If you think that changing the current tax system can be done because it is "fair" you are not thinking right. If people, who under the current tax codes, can get away with paying no tax based on their earnings, why in the wide World Of Sports would they vote for a new tax system that would require them to pay?
There comes a time when you have to be both practical and pragmatic about what can be done and how to do it.
The benefits of the "Fair Tax" far out weigh the fact that some people under the poverty line may not pay taxes.
-The IRS goes away and with it all the billions we spend for them.
-The actual estimated tax is 22%, not 30, or 39 % like so many non economic media types claim. This figure from a study by economic professors who took into account all embedded taxes, on average, of an end product, good, or service.
-All people will pay into the system as they purchase goods and services. That includes illegal immigrants, the rich, churches, etc. In other words, no cheating on your taxes here.
-Those at or below the poverty line get a pre-bate check to pay for the necessities of life. Do we really want to tax poor people? Really?
-And the best thing about the "fair Tax" is that it takes control away from politicians so they cannot add loopholes that favor their sponsors and other corporations. This is going to be the biggest hurdle in getting a tax system change, the loss of power by government.
-As to fairness, would any body argue that some rich people pay no taxes because we are taxed on income? If a person is wealthy, he lives off his savings. Now, all pay according to what they buy.
-Also, all those political taxes go away, no death or inheritance tax. No property tax. No Home tax. No SS or Medicare tax. All taken care of by the Fair tax system.
-And no Tax return!
-In 2002, it was estimated that individuals, businesses, and nonprofits spent 5.8 billion hours complying with the tax code. Imagine the cost?
These are just a very few of the reasons for a "Fair Tax.