Fair Tax debate ONLY

[BanginJimmy]

I hope we can get a mod in here to keep this subject on the fair tax only. I would like all rep/dem talk to be excluded from this thread as it has nothing to do with the fair tax.


that said here we go.


The fair tax is designed as a complete replacement for FEDERAL income and corporate taxes. It is not an add-on to current taxes like some would like you to believe. If you dont spend money, you dont pay taxes. This unfortunately does not include state taxes.

pros:

* eliminates income taxes for the poor and actually pays them basic necessities. Each family in posession of social security numbers will receive a prebate check from the federal govt to cover minimum basic needs for the family. Those that are in the country illegally will be not receive this prebate. For those that live below the poverty line, this will effectivly eliminate any tax liability they may have.

* Right now every product has federal taxes imbedded. Those taxes account for ~22% of the current price of the products you buy. The fairtax will completely eliminate the taxes that these businesses will pay and replace it with the 23% fair tax. This will cause all products to cost ~$0.01 per dollar more. So if you bought a product now and it cost you $100.00 after all taxes, with the fairtax it will cost you $101.00.


* Corporate taxes will be eliminated. Right now corporate payroll taxes cost a business owner about 32% of their monthly payroll amount. If you have 1 person on payroll and their pretax payroll is 1k per month. It doesnt cost an employer 1k. It costs the employer over 1500 when you add in payroll taxes and unemployment taxes. Eliminate nly these 2 taxes and that employer can hire 1 more person and add that much more money into the economy.

* Eliminating corporate taxes will make the US the world's largest tax haven. More than 90% of foreign fortune 500 corporations said they would at least move a portion of their of their business to the US, some said they would move their entire operation to the US. Can anyone begin to imagine the number of high and low paying jobs this would create?

* The fairtax is 100% revenue neutral from day 1 of full incorporation. It creates the tax haven that will bring large numbers of foreign companies to the US. With more jobs and more money being made, this plan will create a revenue POSITIVE system. This will work quickly to eliminate our foreign and domestic debt.



Cons:

* I cant think of any




I dont pretend to know this system back and forth. I still have a lot of research to do on it. If you want to know more I would suggest reading Neal Boortz and John Linder's books on the subject. I plan on reading them just as soon as I finish reading the one I am reading now. You can also find out alot more by spending an hour and listening to Boortz's seminar on it http://wsbradio.com/ads/fairtax_webinar.html


I'm open to all INTELLIGENT debate on this. "I think it sucks" statements are pointless so dont post it unless you actually have a reasoning behind it. Also dont bring up WHO is supporting it or not supporting it as it really doesnt matter to this discussion.