The "Fair" Tax is a welfare scam
- Thread starter Thomas L. Knapp
- Start date
klaatu
Fusionist
Because a Sales Tax collects from money that is spent .. people who earn through the black market spend their money.. correct? So the Government wins. But in the current system they do not report their eanings.. thus .. the Government loses.
As for your first question .. under a Consumption Tax.. you wouldnt.
uscitizen
Villified User
UMM I know people who earm money at a job and spend it on gambling and or drugs......
klaatu
Fusionist
USC.. the point of interest here is the person or persons they are purchasing the drugs from ... these are the people that do not report their earnings.. because it is illegal.... But these people do consume with the illegal money they earn .. they buy goods and merchandise... under a Sales Tax system..this lost revenue is now captured ... Gabeesh?
i don't agree with a consumption tax...
the average american is saving nothing today, that means they are spending all of their money thus all would be taxed, in general....
but the wealthiest out there do not spend all of their money, they save a great deal of it....
in addition to this, a high sales tax will hurt sales of retail goods from foreigners...there is a huge trade right now of foreigners coming here just to shop and get our cheaper goods....especially clothes and shoes...at least i am personally knowledgable about those areas...
and the federal government taxing food and escentials like clothes just seems wrong, especially when it may be on top of what they are paying in local and state sales taxes
the average american is saving nothing today, that means they are spending all of their money thus all would be taxed, in general....
but the wealthiest out there do not spend all of their money, they save a great deal of it....
in addition to this, a high sales tax will hurt sales of retail goods from foreigners...there is a huge trade right now of foreigners coming here just to shop and get our cheaper goods....especially clothes and shoes...at least i am personally knowledgable about those areas...
and the federal government taxing food and escentials like clothes just seems wrong, especially when it may be on top of what they are paying in local and state sales taxes
FUCK THE POLICE
911 EVERY DAY
It prevents people from cheating taxes because they didn't report their income.
It does leave open the possiblity that people will cheat their taxes by not reporting what they have sold, however.
There's no way to get rid of the black market's avoidance of taxes.
It does leave open the possiblity that people will cheat their taxes by not reporting what they have sold, however.
There's no way to get rid of the black market's avoidance of taxes.
FUCK THE POLICE
911 EVERY DAY
The income tax basically mandates that you can't people pay a tax on clothes and food. You could only get rid of that with a complicated rebate system. It is very easy, however, to do away with that with a sales tax - just label them goods not taxed.
A foreigner who's already here isn't going to pack and go back to home because of high sales taxes. It would prevent them from going here simply for a shopping spree, but few people actually do that. Since most European countries have consumption tax systems up anyway it shouldn't make a big difference. It's actually one of the advantages of the system - people passing by pump money into the economy rather than only those who live in the country.
Although the wealthy generally save more, I don't believe it's very practicable to discourage all savings simply because the wealthy already do it. The wealthy will continue to save at the rate they are right now, it will only be the poor who will start to save as they realize the benefits of doing so. Savings itself is mostly good for the economy, even if the rich only did it.
FUCK THE POLICE
911 EVERY DAY
I think it's petty to discredit an entire system because of something that minor municipalities do, especially whenever their revenue could be replaced by other means.
The 40lK's and IRA's will no longer be necessary, since there's nothing to discourage savings anymore and things that were created to shelter savings from taxes will be unnecessary because EVERY saving is now sheltered from taxes.
Did I only list one reason why I discredited it watermark? gees louise!
What do you do with all the iras and 401k's that have not had any taxes taken out of them when you change to this system? make them pay the tax at the time of the change? allow them to keep their 401k's iras until they die and not make them pay the income tax they were suppose to pay back when they put the money in there?
And how would you transition in to this..? one year every one pays their income taxes and then the next year starting january 1 you add the tax to goods and eliminate the tax on income?If that is the case then the Iras and 401ks before this conversion should be taxed....
and money you collected on December 31 was taxed via income tax and then when you go to spend it, it is taxed again.... I just can't figure out how the transition would work.
And how would the stock market work? When you buy stock would that be taxed too?
and if you eliminated 401k's what kind of retirement benefit is the employer going to give/negotiate with their employees now?
FUCK THE POLICE
911 EVERY DAY
I'm sure there's a way to do it fairly. I'd just have to know more about the system.
Immanuel
Junior Member
What do you do with all the iras and 401k's that have not had any taxes taken out of them when you change to this system? make them pay the tax at the time of the change? allow them to keep their 401k's iras until they die and not make them pay the income tax they were suppose to pay back when they put the money in there?
I don't remember the full details but this has been addressed in the bill. Something like there will be a consumer credit for the balance each person has in their 401(k)'s, IRAs etc. Again, I don't remember all the details, but if you actually read any information on the bill you would have known that.
Immie
I don't remember the full details but this has been addressed in the bill. Something like there will be a consumer credit for the balance each person has in their 401(k)'s, IRAs etc. Again, I don't remember all the details, but if you actually read any information on the bill you would have known that.
Immie
Immanuel
Junior Member
Care is not interested in doing it fairly. She prefers allowing the politicians and the lobbyists to build huge loopholes for large contributors into the income tax system so that they can dominate the world.
Immie
PS just ribbing you Care
klaatu
Fusionist
Why is it wrong to tax food and clothes if you are not paying any income Tax? It seems as your main objective is to have the wealthiest pay for everything? If it is the poorest amongst us that worries you, I would be for a system that would exempt them from paying tax on certain items... like food and medicne... and I would be for a system that would allow places like the Salvation Army or Goodwill to become Tax Free Zones. Fair enough?
LOL. I was just about to say this...
I mean really, do you think the $20,000 that Julia Roberts spent on her bra shouldn't be taxed?
klaatu
Fusionist
Exactly! When you put it that way it sounds ridiculous doesnt it? This is what people dont seem to get.. these people spend enormous amounts of money on the most ridiculous things.. but it does keep our economy rolling and the windfall to the Government in the form of a consumption tax would be huge.
The Rich in this Country would be doing exatly what some people want... aka ...paying their fair share.
i.e. .... a tax on a 20,000 dog house ...