do ya know about the fairtax?

[SniperJoe]

huh? i dont know what that is

It's a new tax proposal that was created to abolish the income tax for us. It is currently in the House Ways and Means committee, I believe. Basically, instead of having an income tax and a number of other taxes, the government will get their money from a national retail sales tax. There is a lot more to it than that, so I suggest people do some research on it before they make judgements about it.

[Desdicado]

You can read up on it on Boortz.com

[KNHTRDR]

It's a new tax proposal that was created to abolish the income tax for us. It is currently in the House Ways and Means committee, I believe. Basically, instead of having an income tax and a number of other taxes, the government will get their money from a national retail sales tax. There is a lot more to it than that, so I suggest people do some research on it before they make judgements about it.

Not to abolish it but to REFORM it.

[Jaimecbr900]

Not to abolish it but to REFORM it.

No, to abolish it. If it is allowed in the proposed form, the IRS would seize to exist. The whole idea behind it is to get rid of income tax all together.

In a nutshell, you would get 100% of your check as if you were a 1099 employee. So you make $10/hr and work 40 hours? You get to TAKE HOME $400/wk. TAKE HOME. Then, when you buy something at the store you will pay a FLAT TAX of X amount.

The idea is to generate revenue NOT from just the people that get it taken from their check every week, but from EVERYONE. EVERYONE has to buy things, right? So there is no way to avoid NOT paying taxes. THEREFORE the actual tax burden falls on everyone based on CONSUMPTION and not as a penalty for high wage earners, i.e. the more you make the more you pay like it's "supposed" to work now.

3/4 of the entire tax revenue right NOW falls on that 1% of high wage earners that actually PAY taxes. Millions of people every year don't pay a single dime of income taxes. Eventually some get caught and have to pay, the vast majority don't. We can either hire 5 million more IRS workers to be able to go after every single person that doesn't pay or make them pay in a way that can't be cheated. Single or FLAT tax is one of those ways you can't get around paying, i.e. cheating.

Everyone has to buy things like groceries, clothes, paper, office supplies, etc. When you buy those things NOW you still pay an additional "inbedded TAX" that is in fact double taxation because you are paying with money that's already been taxed once before when you cashed your check.

Some people argue that it will simply add 23% to everything we now buy so what's the difference. Well, the difference is that 23% may be the amount being proposed as a FLAT TAX, but that doesn't take into consideration the already inflated TAX we pay anyway. So therefore if the FLAT TAX works as its supposed to, the hidden "inbedded TAX" we already pay will be eliminated by competition in a free market society.

Example:

GM was losing a ton of money. They figured out a way to move cars. Embark on a campaign where you offer your cars at the "employees discounted price".......we all know what has happened since then don't we??? GM's cars were flying off the lots, and very very soon every other manufacturer copied it and were giving their cars with the same discount. This is a prime example of the law of competition in a free market society dictating the price. Either you keep up or you'll get left behind. Free competition is what gives all of us consumers the best price.

Fast forward that same idea now to the FLAT TAX and buying things. When one store slashes that "hidden TAX" because even by doing so they will still make more money, the next competitor has to follow or get left behind. Pretty soon, you have prices dictating supply and demand. Again, a win win for the consumer.

They estimate that by totally doing away with the IRS and putting more money in everyone's pocket to be able to spend.....the economy will more than double w/i ten years. That means that the gov't will have all the money they need to spend on $500 toilet seats and we will all have more money in our pockets.

This program also promotes SAVING and INVESTING. Both excellent ideas to be able to keep our economy the leader in the world.

It also promotes big overseas businesses to come here and set up shop. Many huge corporations go overseas for that same tax advantage. Daimler Chrysler is the very first good example. They'd rather be here, but they save money by being in Germany. Why? Because of the taxes. Now, if you tell big companies that they no longer pay income taxes, which BTW is a huge expenditure for the EMPLOYER as well (I know this first hand), then they are more apt to setup shop and headquarters here, i.e. more jobs for everybody. Again, a win-win in my eyes. Just as an example, had I not had to pay for my employees' FICA, unemployment, and other taxes last year......I would have more than $75K in my company's bank account right NOW. That's how much I had to pay, $75k. If they do away with the income tax, I would be substantially better off financially as a company. A company that generates revenue for the local economy too by paying property taxes, permits, etc. Again, win-win for everybody.

Also look at the way tax increases go NOW. When certain segments of Gov't want to increase revenue what do they do? INCREASE taxes on those segments of the population that they don't need VOTES from, i.e. Democrats have their favorites, and Republicans have theirs. They are in power, they don't need that particular "vote", so fine.....they simply come up with new laws to increase the tax burden of ONLY those they don't need or don't like. Happens all the time. Why do you think politicians use this "Robin Hood" mentality of always pounding on their chests about "only" making tax increases for the "rich" and not the poor???? Because the "rich" are less in numbers, i.e. votes, than the "poor".

Now, to follow that up, with the FLAT TAX....EVERYBODY pays the exact same amount and only pay "more" because they consume more. Follow? So now, politicians will be a whole less likely to "increase" ANY taxes simply because they will piss off EVERYBODY off (as there is only one tax now) including people that VOTE FOR THEM......follow that??? So it would also serve as a great deterrent to tax increases too.

It goes a lot further and deeper than that, but those are some obvious points right there. If someone doesn't see how all the things I mentioned above would be a BENEFIT to the U.S.......I don't know what would be.

[KNHTRDR]

^^Thanks,you expiained it very well I'm still reading the book and you are right about all u said. but sometimes ya have to use the word reform as not to scare people.