"Poorer People generally" RENT which would be Taxed at 30% .. even at Fairytax's Bogus Claimed rate.
Fairytax Discriminates against those who don't have enough money to buy (and never will will with taxing their rent).
Creating a PERMANENT Underclass.
When They do buy it's Oft New inexpensive attached housing.
Taxing RENT is just one of the things that makes Fairytax a NON-starter even for the non-poor.
Rental costs in cities like NY, SF, Boston, etc are often 50% of a persons income.. especially, but not limited to, the young who are Saving to try and buy a house (which will also be 30% higher if new).
and I'm not talking 'poor' here. I'm talking a good percent.
You think most can pay a 30% increase?
Medical care is already taxed up the wazoo by taxes that would go away under the fair tax. Every nurse a doctor hires, every orderly, everybody is paying social security and medicare that costs that employee 7.65% of their gross earnings and costs their EMPLOYER 7.65% of the employee's gross earnings.
Oooooh, that's only 1/4 of Fairtax's Claimed rate of 30%. Which is Actually 56% when scored independently.
You think Anyone can afford to pay 30% more for costly Heart operations (or Kidney, Chemo etc)?
Insurance companies will have to Raise Their rates too to pay for that Huge increase. Not to mention Auto insurance etc.
I suggest you go back and read/try rebuting posts 144, 147, 149, and 184 .... all debunking/Documenting that Fairtax's ACTUAL neeed rate is in the Mid 50's% range.
This article you responded to was just last in a series of debunkings, and Probably it's weakest. But still decnt and informative.
That BS.The Fair Tax includes a prebate calculated at the poverty level, which pays for the tax on the necessities of life that those at the poverty level incur, including food. It isn't necessarily big enough to cover someone eating truffles and steak for a $400 plate at some swank restaurant, tho.
The prebate is far INadequate and only added to try and hide the obvious Regressivity of the tax... but it doesn't come close to mitigating it.
Do you think the rich and super-rich who now pay either 38% income, or 15% Capital, Gains and Divs, taxes are going to be taxed more or less?
CEOs of Goldman Sachs/GE/Disney? Billionaires like Buffett who spend relatively NOTHING compared to their active and passive incomes?
The whole Sick basis of Fairtax is making those who NECESSARILY spend a higher part (next to all) of their incomes pay a Higher Burden. While The Rich who sit on money and collect interest will pay next to nothing Relative to current rates.. not to mention estate taxes.
(ie simplification), If I make $1 billion and pay $380,000,000 in Income tax alone as well as Divs and Cap gains on my other Invested money.
WHO Is Going to pay more to make up for the HUGE Tax decrease on me?
Who's going to make up for their Huge tax Decrease since FT Claims 'Revenue neutral'?
In fact, what 'Fairytax' does is INVERT The tax Brackets!!
The new Top bracket will be the Poor and Middle who spend virtually all the make to live .. they'll now pay "30%" of their income since they necessarily spend virtually all of it to live...
while the Rich will be the new 0-10% Bracket since they spend so Little of their income to live!
Yes, that's the truth of this tax Designed and Financed, by Two Billionaires.
100% wrong.Disregarding the bad math, the Fair Tax taps many more sources than the income tax can hope to. The Fair Tax will tax rich people who are simply sitting on a pile of money, spending a little each year, but never earning a taxable dime.
They now pay 15% Divs and Cap Gains... and an estate tax.
And that's down from 28% ONLY because Bush lowered from that higher rate. 7 years ago. There is talk now of at least putting it back at 20%.
Their 'Fairytax' would be in the Low Single Digits.
You couldn't even tax that old mansion they buy in Newport every 20 years.
What's killing our industry and wouldn't change is in Mexico and China they pay 1/10 as much.Also untouched by the income tax is the imports that are killing our own industry.
WHAT!Additionally, the income tax also does not tax the proceeds of the illegal drug trade, prostitution, other smuggling, numbers rackets, etc. ..
Those people would be no more easily taxable//findable than they are under the current system!
In fact Fairytax will created MILLIONS/TENS of MILLIONS More offenders who will 'Go Cash' to avoid the 30% (+ their 5-10% State sales Taxes). Say over 40% in New york already and that again allowing for Fairytax's Bogus "30%" instead of the real 56%.
It will be Mindboggling. The Fairtax creates the biggest Beauracracy in history.. keeping track of prebate amounts, and turns everyone who sells anything into another tax entity and impossible really to monitor.
As I said, its wages will still Not be competitive with Foreign wages in Mexico etc. .. and if you think a 30% Tax on New House and Cars will create "Massive Investment" do you?Overall, the Fair Tax would radically boost the economy, causing massive investment in the USA with its new 0% manufacturing tax rate.
Under Fairtax the Domestic Car company has to pay it's suppliers 30% More,
and has to pay the Railroad Company which brings is Coal 30% More,
The Coal company itself 30% more,
the Railroad company has to pay 30% more when it buys new cars, or new rails, and so down the line..
taxing at every level and Increasing costs.
Fairtax BOGUSLY also depends on the government paying Taxes to Itself! when it buys anything Medical care, Tanks, Jets, Uniforms, etc.
The economy has NOT been Gutted over "50 years"..The Fair Tax, I believe, is the answer to our overall problems that has been slowly gutting our economy over the last 50 years. And, it's the income tax that has been doing it.
The USA became a powerhouse during the first Half of those 50 years.
and with a Large Middle Class.
THAT is what made/Makes America what it is.. NOT a few Billiionaires like Costa Rica.
The last 25 years...
When the top Marginal Income tax rates Dropped from the 70-90% it was in the 50's to early 80's to 35-40% it was since.
You got it Backwards againI not only believe that the Fair Tax is the overall answer to our long-standing economic problems, but further believe that if we _don't_ pass the fair tax and get rid of the income tax, we're headed for an eventual economic train wreck, like Zimbabwe, where there will only be the very very rich and the very very poor, and nobody in between.
THAT where we're headed now.
OBVIOUSLY the less progressve a tax will lead to more Polarity of wealth/Standard of living.
The Income tax was Inroduced, Successfully, in the First place as there were VERY rich like the Rockefellers and Melllons; and VERY poor.
The Income tax/Progressive Income tax, DID succesfully Help create a large middle class that is the Hallmark of America.
Regressive taxes as Fairytax or Flat tax will just reverse that progress.
As have the Tax cuts for the rich since.
And now, even after being Wrong on all the above... you have again to answer the REAL RATE, 56/57% questions of this SCAM in the aforementioned posts and articles.
144, 147, 149, and 184 etc.