A 23% sales tax would destroy the economy. Where did you get that percentage?
Check out fairtax.org. GJ and other fair tax advocates feel that the income tax and IRS should be eliminated and replaced with the fair tax. Under the fair tax your pay check is paid in full, but you will pay a national sales tax. The sales tax is 23% but the government would give each household a yearly "prebate" the amount of which would be be paid for all applicable taxes, up to the poverty line. So those living at the poverty line would effectivley be paying a 0% tax with this prebate. Only those who make more money and spend extravagant amounts of money will ever actually be taxed that full 23%. So basically you'll be taxed on spending, not your production. This also encourages illegal immigrants to become legal because if you're an illegal immigrant you won't get the government prebate and would have to pay the fair tax in full.
Well, supposedly there would be no other taxes. Ron has said it would be a good first step.
Check out fairtax.org. GJ and other fair tax advocates feel that the income tax and IRS should be eliminated and replaced with the fair tax. Under the fair tax your pay check is paid in full, but you will pay a national sales tax. The sales tax is 23% but the government would give each household a yearly "prebate" the amount of which would be be paid for all applicable taxes, up to the poverty line. So those living at the poverty line would effectivley be paying a 0% tax with this prebate. Only those who make more money and spend extravagant amounts of money will ever actually be taxed that full 23%. So basically you'll be taxed on spending, not your production. This also encourages illegal immigrants to become legal because if you're an illegal immigrant you won't get the government prebate and would have to pay the fair tax in full.
My understanding is that they agree that 'in the first ten years' there would ALSO have to be an income tax. I think we'd just end up with both. If it ACTUALLY got rid of the income tax it might be different. Too many have been pushing for both for too long for me to be actively in favor of that. Having said that, if it ACTUALLY happened in a way that reduced the tax burden I'd be for it when it came up. but my belief is congress uses 'popular programs' like that as trojan horses to say they passed it while actually adding stuff it is otherwise hard to pass because it is awful.
OMG
I just found out that GJ is strongly for the FAIR TAX, which many people around here are for. Combine that with their pro 2nd Amendment stance and I think even Clint Eastwood would support a Paul/Johnson ticket.
Isn't the FAIR tax at this point a 23% sales tax ON TOP of an income tax? Do you think we'd ever get rid of either?
My understanding is that it is INSTEAD OF, not ON TOP OF. If you spend less you pay less. Buy a private jet and you'll be taxed.
I just read on DP that a VAT (tax) is in the GOP platform.
Haha.
Isn't the FAIR tax at this point a 23% sales tax ON TOP of an income tax? Do you think we'd ever get rid of either?
Sell a used lawn mower and get a visit from the jack boot wearing FTA (Fair Tax Administration) auditing your sale.
The FairTax is a single-rate, federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A rebate makes the effective rate progressive.
I am a proponent of the FairTax over our current system. It is about the system of taxation, not the level.
The FairTax abolishes every single federal government tax, and replaces it with a national sales tax.
Though it is revenue neutral, I would argue that it would keep the government more in check, because any time it raises taxes, everybody, rich-middle class-poor, will all feel it and put pressure on the government to keep taxes down. There are many more advantages, from an economic standpoint it incentives saving as opposed to current consumption incentives. It saves billions on compliance costs and abolishes the IRS-gestapo agency.