The Fair Tax Act is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), and various other taxes with a national retail sales tax, to be levied once at the point of purchase on all goods and services. It calls for a monthly payment to all households of citizens and legal resident aliens as an advance rebate of tax on purchases up to poverty level. The sales tax rate is 23% (23 cents on every $1-calculated like income taxes).
Based on this information, I would have to agree that it sounds like a promising idea. A flat 23% tax rate, no matter what the income, that would be nice. But, with the financial deficit in the US, I don't think it will work. They would just have to create other ways to tax us to decrease the deficit. Also, since I am employed by the IRS, I would have to vote against the bill.
What are your thoughts? Would you vote to pass the bill?
Subscribe to:
Post Comments (Atom)
9 comments:
Any reduction of taxes will stimulate the economy and improve personal spending power.
Reducing the size of government is the solution to reducing spending. We elected a group that promised to do that in the 1990's. When they got to Washington the were corrupted and accidentally doubled the size of government.
We need a viable option to the two party system that can and will take the Federal government apart and give the power back to the states. Outside of protecting our borders they shouldn't have much to do.
I agree that any reduction of taxes will stimulate the economy, but reducing the size of the Government could double unemployment. The Federal Government employees thousands. Can they stimulate the economy and increase unemployment at the same time? Would that help or hurt the economy?
Is there any solution to the problem? I agree with both of you but any solution, at this point, will create a new problem.
The Fair Tax seems to me, to be the best solution to our current tax system. It will require a grass roots movement from its supporters, but I'm ready to join the march. I believe that the supporters of the Fair Tax will have to push their politicians into learning about the bill so they will support it. I've read books on the Fair Tax and I support it 100%. I have yet to find a down side to it. As far as unemployment going up due to the job loss involved with the government, this would not be the case. Those employed by the government will still have to process the taxes paid and taxes will still be paid, just differently.
So, I guess i mis-interpreted the bill to say it would replace the IRS! Since you have more knowledge of the bill than I, will it replace the IRS?
How can the folks who support their families with minimum wage jobs pay a "fair tax?" How can the 1000's of folks who lost their jobs last month pay a "fair tax?" How can the elderly on a fixed income pay a "fair tax?"
It's a different idea, but I don't think it will ever be passed.
It's like saying, let's do away with the volunteer army and have a system like Israel where all young adults serve. It's not going to happen here.
I do admire folks who bravely try to present new ideas. Even though ultimately they will not be electable.
Well said.
Post a Comment