Fairtax crap

[trixie]

How do you convince a lower income person that Fairtax would only shift taxes to the working class? The actual wording of the proposal doesn't seem clear enough for them. It is quite clear to me that the wealthy will just have to shift all purchases to a business expense - the wording is quite clear that this is possible and allowable more under the fairtax than now.

[rkc3]

1. Good luck on that effort.

Try the car approach.

He buys a $20,000 car and is taxed 20% on it - or $5,000. His income is $50,000. He pays 10% of his income on taxes.

Another guy buys a $50,000 car and pays 20% - or $10,000. His income is $500,000. He pays 2% of his income on taxes.

It's even worse when you consider most people consume a very large portion of their incomes every year to stay afloat - so they are paying taxes on every dollar they earn.

For the wealthy, many can manage to save a good portion of their income because there is only so much money you can spend on things like food, entertainment, etc. So they may earn $500,000 a year, but since they only spend $300,000 a year, they're only being taxed on 60% of their earnings.

[trixie]

3. thanks

Good example. I used the exact wording from the proposal - something like...everyday costs can be absorbed by a company as seen fit as to pertaining to a business cost......

Right there is the loop hole. Any business owner can put his car, boat, clothes, groceries etc as a business cost. When you look at this up against the tax code currently on the books it is definately a more lax code.


Edited to say - I also used renters would be destroyed by this way of taxing.

[Tactical Progressive]

2. I say the same thing regardless of the loony fascist tax proposal

If rich people are pushing it to pay less in taxes, then who do you think is going to have to pay to make up the difference?

It doesn't matter that you don't understand how it will work that way, but you have to be smart enough to understand that it will by necessity work exactly that way.

Do you think the greedy wealthy in control of this country are doing something to help you out, at their expense? If you think that then you'll end up getting exactly what they want you to get.


Let them figure it out for themselves, because they won't believe anything they don't want to believe, and what they want to believe is that they'll make out.

[VPStoltz]

4. Is this an intiative specific to one state?

Haven't these people been reading the papers - even the lousy liberal media? Every state in the union has either had to raise taxes or cut the shit out of program or both. Fed. tax is on income but when states raise taxes it covers every part of a persons life. Those at the bottom end up paying more at the pump, in the grocery store, etc.

[wli]

5. common loophole to all sales/etc. -related taxes

So if it's not an income tax, it's regressive.

[dcfirefighter]

6. Wealth tax - not regressive

and better for the economy especially if you don't tax wealth that is created by labor. That pretty much leaves natural resources, government licenses, and non-building real property.

Even more progressive than our income tax - the distribution of such wealth is more skewed than the distribution of taxable income.

Also has a number of 'green' side effects.