"Fair Tax"

JJIII · #1 05-16-2009, 08:43 AM

I have listened to Neal Boortz for quite a while talk about the "Fair Tax" and I believe it to be a viable option. You can google "Fair Tax" and find lots of info. Anybody care to comment?

wintermuted · #2 05-16-2009, 11:28 AM

It's an idea.

I like it a heck of a lot better than the flat income tax proposed elsewhere on this board, but I believe it's got the same basic drawback - that is, that it's regressive, putting a proportionately higher burden on lower-income workers who are likely to spend near 100% of their income on taxable goods.

Fairtax at least takes steps to address this problem, which flat tax does not. Still, I remain unconvinced that it would really be equitable once it was implemented in a "real world" situation, even taking into account that lower-income people would quickly establish a thriving black market.

All in all, I'm ambivalent on the subject, probably coming down just on the other side of against it, but I congratulate Boortz on a well-thought-out idea and a wonderful marketing job. If you're against Fairtax, it inherently means you support unfair taxation practices, right?

JJIII · #3 05-16-2009, 02:10 PM

"it's regressive, putting a proportionately higher burden on lower-income workers who are likely to spend near 100% of their income on taxable goods"

Isn't that true no matter what the tax system? Also, are you taking into account the "Prebate", whereby everyone recieves the amount of tax they would pay to purchase the necessities of life monthly. This would make the lower-income paying proportionately less tax than the well-off, who would be buying more luxury items.