-If the day the FairTax ever takes effect (very doubtful) it will be like joining some weird national game of Monopoly already in progress--the majority of properties are already sold and have houses and hotels on them...yet you are suppose to be equal and it's suppose to be fair! Let me say this loud and clear for anyone that needs a ten-word-or-less version of the FairTax plan. "SOAK THE MIDDLE CLASS". Those four words describes it as perfectly as possible because that's exactly what it does.
It should be called "FairyTax" because one would have to be the sort who believes in elves repairing shoes, gnomes managing Zurich banks and pixies dancing under the full moon to buy into it. This bass-ackwards pro-oligarchy plan could ruin America.
The FairTax increases the size of the government making all who sell or trade part of the Big Brother network. This new bill gives additional powers to rule the poor and literally grants additional rights to the wealthiest people in America. George Orwell would have been proud.
The FairTax is ANTI-FAMILY. The fairTax penalizes poor families for buying food, clothes, shelter, and medical care by taxing all the basic necessities of life. These things are not taxed right now (and shouldn't be) but they ARE HEAVILY TAXED under the FairTax. Remember this when you get barraged by a FairTax supporter that says the prebate will give you a portion of this additional tax back and you should be grateful the NEW Big Brother Government for giving you anything back. The FairTax bill penalizes those who live paycheck to paycheck taxing every dollar spent to make ends meet while UN-TAXING the rich and wealthy who live off inheritances, trusts, gifts, and old money.
What you lose under the FairTax-
1. The Home Mortgage tax reduction- no more deducting your mortgage interest..no incentive to purchase a house.
2. The Per-Child tax deduction for dependents..no more large families.
3. The deduction for state and local taxes ...so you can tack on those taxes too.
4. The College Tuition tax deductions....sorry kids no college for you.
5. Roth IRA- will be taxed twice because your money is taxed again when you spend it.
6. Charitable Contributions deductions...Sorry, no help for the faithful
7. Child Care Credits...Sorry, no more help for single moms and poor families with kids.
8 refinancing Points deduction....no more incentive to refinance
What You Gain Under the FairTax
1. New 30% tax on every new house or property you want to purchase.
2. New 30% tax on vehicles, boats, campers, home appliances, TV's furniture etc.
3. New 30% tax on Food, Clothing, Shelter, Rent, Electricity, natural gas, gasoline, auto repairs, and phone services.
4. NEW 30% tax on Vision care, glasses, medicine, surgical procedures, hospital stays, and Dental services.
5. New 30% tax on Legal Services, trial services, legal advice, legal winnings, and losses.
6. DOUBLE TAXATION on ROTH IRA's or retirement money you took as a lump-sum.
7. Your Consumption is now directly linked to inflation...prices go up..your taxes go up...
8. Interest on Credit Cards, Loans, and Mortgages now taxed at 30% on top of what you owe.
9. You now have to pay the government for permission to live in America by paying taxes on all you consume.
Fairtax is just ANOTHER way for the rich to screw the middle class folks. Adding a 25-30% tax on everything purchased is utter nonsense. 25-30% added to the price of a new home....nice! 25-30% added to the price of a new vehicle...nice! 25- 30% added to the cost of college tuition....sweet!...25-30% added to the cost of heating and lighting to your home.....real nice.
That should be a real help to all those old retired people on a fixed income, no?
exordium- It the 25-30% tax you refer to is on everything now, we need a FLAT TAX not the Fair Tax some are talking about. NO EXEMPTIONS
If I am building houses you think the employee tax-SS tax and other tax aren't in the cost of building.
You nailed it ... another example:
Say you cut the top rate from 39.6% to 20% and invoke a 20% national sales tax .... a wealthy person pays, say, 10% of his income on living expenses, so he saves an incremental 19.6% on 90% of his income while paying an extra 20% on 10% ... middle class and below with a family of 4 pay essentially 100% income to live ... so they pay an incremental 20% sales tax while saving 0% or paying MORE in income tax ... sound "fair"???Sure, you can pro-rate sales taxes but that requires keeping records of all expenses ... "fair"???