08-14-2015, 04:58 PM
(08-14-2015, 01:36 PM)Rotobeast Wrote: What are your thoughts on The Fair Tax ?
https://en.wikipedia.org/wiki/FairTax
It is about as "unfair" as you can get.
It doesn't include most of the things that rich people do with their money like buying big houses or investing to make more money. Poor people who have to spend every dollar they earn would be paying a 30% tax rate (plus local sales tax) while rich people who devote most of their income to mortgage payments and investments would pay a much smaller rate.
It would destroy the new car industry because the 30% tax would not apply to used cars.
It would be hard to enforce. The income tax has a built in "self reporting system" in that every dollar claimed as income by one person is claimed as a tax deduction by another person. That makes it harder to defraud the system. However since under the "fair tax" no one would be claiming sales as tax deductions there would be no motive not to lie about sales price.
The rebates would help the poor, but the middle class would be stuck with a bigger bill.
