My little burg made the New Yorker magazine

[JJIII]

Originally Posted by MikeG22

Imagine you brought home the money you make instead of 65% of it... Might be able to save for retirement as opposed to relying on the government to do it for ya.

See www.Fairtax.org.

[MikeG22]

Originally Posted by JJIII

See www.Fairtax.org.

Sounds so wonderful, where's the flip side?

[finnbow]

Originally Posted by MikeG22

Sounds so wonderful, where's the flip side?

It screws everyone in the middle class in favor of the rich.



That said, our current tax system is a mess. A regressive tax is not the answer, however.

[JJIII]

Originally Posted by MikeG22

Sounds so wonderful, where's the flip side?

Read the FAQ sections. Answers to the hard questions are there.

[JJIII]

See here...


Is the FairTax progressive? Do the rich pay more and the poor pay less as a percentage of their spending?

Absolutely, as you can see in Figure 6 below — where the graph shows annual expenditures for a family of four and the corresponding FairTax effective tax rates. The poor actually pay less than zero-percent retail sales tax on their spending. Much like with the earned income tax credit of today, the rebate may give them more money than they actually spend on retail taxes. Especially if they are frugal and buy mostly used products. On the other hand, the wealthy approach a maximum of 23-percent retail sales tax on their spending.

[MikeG22]

Two charts that offer very different views. Problem is both are speculative.

[bobabode]

Originally Posted by MikeG22

Imagine you brought home the money you make instead of 65% of it... Might be able to save for retirement as opposed to relying on the government to do it for ya.

Sounds nice but then it has never quite worked out that way for some people, particularly poor folk stuck by circumstances beyond their control.

[finnbow]

Originally Posted by JJIII

See here...


Is the FairTax progressive? Do the rich pay more and the poor pay less as a percentage of their spending?

Absolutely, as you can see in Figure 6 below — where the graph shows annual expenditures for a family of four and the corresponding FairTax effective tax rates. The poor actually pay less than zero-percent retail sales tax on their spending. Much like with the earned income tax credit of today, the rebate may give them more money than they actually spend on retail taxes. Especially if they are frugal and buy mostly used products. On the other hand, the wealthy approach a maximum of 23-percent retail sales tax on their spending.

The limits on the X-axis only goes to $96,000/year. As you can see in the graph I provided, people making over $200K/year will be the ones making the windfall. The folks making megabucks will be paying far less.

[JJIII]

Originally Posted by MikeG22

Two charts that offer very different views. Problem is both are speculative.

Whoop! There it is!

I think the Fair Tax is a good thing, mostly because it takes away the power to buy votes. Others think it is a bad thing. I would urge everyone to do a lot of research and make up their own minds afterward.

[nailer]

I'm not seeing how increasing the taxes paid by the wealty would keep them from allegedly buying elections or individual polititians.