Interesting fair tax fact (lie)

[bc2208]

I've often heard that the fair tax would be a 23% sales tax. I just found out that's a lie from my tax accountant friend.

The sales tax would be 30%. If you buy a $100 doorknob, you would pay $130 including tax. The idiots spin it as $30 tax / $130 total, which comes to 23%.

Huckabee = liar

 

[RichardC]

this is well documented on wikipedia.

 

[Ben Elliott]

I don't know about everybody else, but if I'm buying a candy bar for a dollar, then found out there's a 23c tax on it, I'm going to be pissed. Is the government worth 23% (30%) of everything I spend?

 

[Perium]

I would rather have no tax then flat tax, then fair tax in that order. Rather then keeping the income tax.

 

[Just Come Home]

This doesn't include state sales tax which typically ranges between 8 and 12 percent.

 

[austin356]

I aint no fairtaxer but that is not a lie.

The difference is inclusive and exclusive. They are only rightfully computing their tax in the same manner that the taxes they hope to replace are computed.

 

[Ara825]

I don't know about everybody else, but if I'm buying a candy bar for a dollar, then found out there's a 23c tax on it, I'm going to be pissed. Is the government worth 23% (30%) of everything I spend?

And doesn't it piss you off too when you realize that they've already sucked tax out of the money you're using to buy the candy bar!

"I owe my soul to the company store." -Tennessee Ernie Ford

 

[Scruffy the Janitor]

I think the fair tax would inevitably lead to taxation of the internet. If not, most people would buy everything from groceries, to boats on the internet.

 

[RichardC]

even though the fair tax doesnt sound like much of an improvement, i'd still take it over the income tax. the one clear upside to it is it rewards people who save money... if you save a portion of your income it is NEVER taxed, which will only benefit you.

and of course in practicality there would probably be many aftermarket/gray market/used goods which wouldnt factor directly into the fair tax, although to an extent they would, but most likely much less than 30%. This would have the net benefit of increased purchasing power.

But yeah it wouldn't be much of an improvement, it would depend on what you were doing with your money. I'd still vote for it and take it as a compromise.

 

[user]

no tax > fairtax > income tax

 

[hypnagogue]

This would heavily encourage savings, which is good in it's own way, but the flipside is that you're discouraging sales; those things upon which all business is dependent.

 

[hocaltar]

I don't know about everybody else, but if I'm buying a candy bar for a dollar, then found out there's a 23c tax on it, I'm going to be pissed. Is the government worth 23% (30%) of everything I spend?

That's one supposed point of the Fair Tax. People realize howmuch they actually are spending and stop spending so the government is forced to shrink... The one thing fair taxers never want to talk about is this: the government doesn't make enough off of our tax dollars now, so they just borrow from China or from the Federal Reserve. Why would they stop printing the money, it's what they have done in the past, it's what they will do in the future.

 

[bc2208]

I aint no fairtaxer but that is not a lie.

The difference is inclusive and exclusive. They are only rightfully computing their tax in the same manner that the taxes they hope to replace are computed.

If it was a 23% tax, you'd pay $123. The sales tax in NY is 8.25% - I pay $108.25. Since you're paying $30 in taxes and not $23, 23% is deceitful.

 

[Unspun]

Before criticizing the fair tax you should go read about it. Your accountant friend is wrong.

I do not support the fair tax. It is a far better tax than the income tax, but to enact the fair tax it requires the repeal of the 16th amendment and requires that the government cut spending and it is a voluntary tax because you get a return every month on the bare necessities. All fair things in my opinion.

 

[bc2208]

Before criticizing the fair tax you should go read about it. Your accountant friend is wrong.

What is wrong? If I'm wrong, no problem.

 

[robertwerden]

The only thing the fairtax does is prevent tax evaders by catching on the end they will find hard to evade when buying something.

The majority of people in this country cheat on their taxes. This stops cheaters. The problem with this is the market will suffer when everything goes to the black market.

The fairtax can only tax new products, so people will sell things that are new and call them used by opening the package.

It is a tax system doomed to fail.

I say go with the CHIPIN tax system