08-12-2016, 12:07 PM
(08-10-2016, 07:44 PM)Aquapod770 Wrote: Let's do another example: Joe and his wife make $100,000 a year, so when they file their taxes currently their income is taxed at 25%. That's $25,000 in income taxes alone (ignoring deductions for the sake of time and simplicity). Let's say they spend all $75,000 they have left. If they made and spent that same amount under the Fairtax plan they'd pay $17,250 in taxes, or $7,750 less in taxes then they currently do.
But the 23% is "inclusive". So if they spend 75K they only get 57.75K worth of goods.
A 23% income tax means you pay 23 cents on every dollar you earn, but this 23% consumption tax means you actually pay 30 cents of tax on every dollar worth of goods you buy. It is a shell game they use to trick the lesser educated into supporting this scam.
if it is really is a "fair tax" then why not apply it to homes and real estate? I'll tell you why. Because those are the largest expenses for the wealthy and it gives them a HUGE advantage over the poor and middle class.
