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Understanding the current economy for Dummies
#41
LWC Wrote:With the flat/fair tax would that be a blanket percentage like 8% or something like that? Wouldn't that further hurt the economy? If I am making sense of it, that is like saying 100,000 per year Bob and 10,000 per year Jeff buy a $100 chair. Both pay $108 on that chair.

However Jeff just spent 1% of his income, and Bob spent .01% of his income. We all know the flat tax would be higher than that KY gets 6% already, so what is more realistic 10%? 12%?

I see how that is fair, but at the same time, you would go back to the company town days, etc... Very quickly with that system, Bob would get richer and Jeff would eventually go broke.

If I remember correctly disability checks for people that were born disabled (not workers disability) is about $650 per month, which is about $7800 per year. If there is a 12% tax on everything they buy, they wont even be able to keep the lights on and pay rent. I am guessing the tax would be on bills as well, right? School taxes, etc... are on them, why not the flat tax?

If there was a hitch in the flat tax to where disabled, etc... could be exempt, I think it would be a great idea. However, what I gain from all the talks is that EVERYONE pays the same rate. Bad idea.

Let me clear up the misconceptions for you...

The Fair Tax is the only plan in existence that eliminates ALL federal taxes for the poor. It does so, because it gets rid of the social security, payroll, hidden excise and corporate taxes that we all pay, income tax, estate, gift, etc. It replaces it with a 23% inclusive sales tax on all new products and services. Each month, each family or individual recieves a rebate check that covers the amount of taxes that you paid up to the poverty level. It varies by family size and possibly location. This allows those in poverty to pay $0 in federal taxes, compared to today's hundreds to thousands they pay in medicare, social security, hidden corporate tax, excise, estate, gift, interest, capital gains.

Also you state that if 100000 earner, and 10000 earner bought a 100 chair, it's be a higher tax on the lower income as a percentage of his earnings. Yet, the fact is, while he buys 1 chair, mr. 100,000 earner buys a chair, car, boat, and hires a financial advisor. All of which are subject to the tax. And as stated, the low income earner would pay $0, and actually recieve a credit after his rebate.

The fairtax is fair because it forces all to pay taxes at a reasonable level and according to their ability, including ILLEGAL immigrants, tourists, and those who would skirt the law by making 'cash under the table'.

Its revenue nuetral, eliminates the IRS, spurs economic growth, and helps state budgets. *(they recieve a portion of the revenue for being the collectors.)
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Understanding the current economy for Dummies - by real_change - 07-24-2011, 05:48 PM

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