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In today's Republican debate, Mike Huckabee had one of the few opportunities to have the floor to discuss his vision for a Fair Tax in America.
Romney opposes the fair tax. Rudy questions it but seems open to hearing a plan for its implementation while still only offering a band-aide over the current tax problems and economic fall-out that we currently have in the US. Tancredo supports a fair tax while most of the remaining candidates were either opposed to it or supported a flat tax.
What are your views on a Fair Tax plan in America. Will it work - won't work? Would it be too TAXING (no pun intended) on the US to change the current system (as Romney so piously suggested today)?
I for one am in favor of the fair tax. It would turn this country into a saving economy rather than a spending. It would also tax illegal income on people. For example, drug dealers who buy expensive cars. I don't support drug dealing but the fact that they would not be untaxed would be a great step in fighting drugs and illegal income.
What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
Abolishes the IRS
Closes all loopholes and brings fairness to taxation
Ensures Social Security and Medicare funding
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheck
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I have these questions
1) so if you are rich, you keep all your money and if you are poor you keep all your money? What if you are rich and travel a lot out of the country and purchase goods there
2) How quickly will the country go bankrupt, lol
3) wouldn't this create a MASSIVE black market for untaxed goods?
I am for at least LOOKING at any tax plan that can claim what these do (or the flat tax) - the current system is inherently unfair and promotes continued corporate tax loopholes, offshore outsourcing, poverty and general elimination of the middle class.
No. By definition a sales tax would be charged only on the sales of items. Since wealthy folks are buying more yachts than those collecting food stamps I imagine the wealthy would pay more tax.
That said it also abolishes some treasured tax shelters of the middle class like mortgage interest deductions, IRA's and the like.
But if you made millions of dollars, and did not live "like a rockstar" and had a modest lifestyle, similar to a middle class person, you would in theory pay LESS taxes then you do now.
How do you figure that? No sales tax? Do you think rich people will stop buy multi million dollar homes? Do you think they will live in small homes just so they don't get taxed? I doubt it.
That is where Mitt Romney had qualms. He stated that we will always need a tax system.....and that is where I have qualms with Mitt Romney. The American people spoke very loud and clear in the last election - - we don't want business as usual in Washington - and Mitt Romney and Guilianni (though I like Rudy's tootie on Iraq) seem to have the same old same old that Washington is already bogged down with. That's why I like Mike - he has a fresh perspective and a CAN DO attitude - with experience of HAVE DONE in Arkansas.
Sorry - got a bit off track....I think some Rush Limbaughnians (Limbanians?? Limbaniacs??) would have a distate for Fair Tax because they would look at it as "punishing" the wealthy.
However, when something is based on a percentage - that is FAIR and according to strong proponents it helps America across the board with Health Care and other benefits
TVDinner wrote: I have these questions
1) so if you are rich, you keep all your money and if you are poor you keep all your money? What if you are rich and travel a lot out of the country and purchase goods there
2) How quickly will the country go bankrupt, lol
3) wouldn't this create a MASSIVE black market for untaxed goods?
Valid questions. I will hopefully be on a conference call tomorrow with Mike Huckabee. I will pose these questions and post his response if I get to be in on the call. This topic might even make a good $5.00 article.
I do have anothe question on the Fair Tax plan and the abolishment of the IRS. It is the question Rudy Guiliani raised:
Who adminstrates the Fair Tax Plan - especially if you have abolished the IRS? Who monitors what is being taxed and what's not.
A short drive around DC (Hwy 50) to see the IRS building will quickly awaken anyone to the reality that just sending out the Royal Decree from the oval office that the IRS shall no longer exist - isn't possible - well it may be possible - but it certainly isn't practical. Look at the job losses alone. Certainly, implementation of the Fair Tax plan will be a challenge - but it is a concept that needs to be considered to change the unbalanced situation that we currently have
In response to TV Dinner - The tax would be based on consumption and as you become wealthier you tend to consume more. You take vacations, you buy expensive vehicles, you own a pool, etc etc etc.
The tax shelters the wealthy hide behind now far exceed the chances they will pay less under a sales based tax system.
Do not fall for it, no tax system is for the good of the average person.
Our 'little johnny' promised we would never have a tax like this and as soon as the mongrel got in he introduced it, they call it GST goods and services tax.
If it was done the way they initially discussed it may have been okay, but it's not. We pay income tax on our wages every week then we pay GST on every thing bar essential items. Taxes that were already on items were supposed to be dropped they weren't.
Some foods are classed as essential some aren't, biscuits(cookies) are not essential, womens hygiene products are not essential, toothpaste is not essential and the list goes on. Out of the generousity of their hearts they did give us a bit of a tax cut in our personal income tax, but they also lowered the thresholds and we got caught badly when my husbands yearly income went $1000.00 over the threshold.
Our running expenses for our house and cars, by this I mean insurance policies, registrations, power and phone bills increased by $600.00 alone in the first year, we did not get that in tax savings.
Our government is raking in huge amounts with this GST yet they still tell us there is no money available for hospitals, aged care, schools etc.
