You won't like my findings:
The rich and the poor pay different percentages.... Not my idea of "Fair" and doesn't treat us equally.
I thought the FairTax was supposed to eliminate class warfare? Still looks like its there to me.... just much softer than the IRS system.
there is no "getting out of paying it".
Here it says some people don't pay any 'net' tax at all.... I guess they get a tax refund. Effectively meaning there are those who will get out of paying it.
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Now I mentioned that I didn't like "Progressive" systems, this is a progressive tax:
That suggests to me there is no limit to the tax... its on the "informed" public to keep the tax low - and to keep it from being shifted to the rich - by following their civic duty and keeping politicians in check.
The Federalist was primarily written by Hamilton, who was a monarchist, and is primarily responsible for the mess we're in today.
Oddly enough, they use Alexander Hamilton and the Federalist Papers to support the FairTax but Hamilton expresses the very same concern about the FairTax that I have.
So what this will lead to is an ever increasing tax, with ever increasing "prebates" - for an ever increasing number of people so politicians can continue to pander - and the tax will be shifted primarily onto those in the upper classes.... Your site confirmed all my concerns as being accurate.
With my plan of a flat tax, everyone pays something like 10% of their income, rich, poor, white, black, everybody with an income and without exception. Thats true equality and fairness, there is zero bias in tax rate and the legislature would have to raise taxes on everyone, especially including the poor, to affect the rich... That system would eliminate class warfare.
The FairTax site mentions some drawbacks and flaws in a Flat Tax system:
Not mine. Mines no more complicated than the Fair Tax, 10%* is automatically withheld from your paycheck and/or earnings like the FICA tax currently is, and its much lower than FICA. I don't see this requiring anything more than a federal sales tax (FairTax) would require to administrate the funds.
I was very specific, only flesh and blood VOTERS with income get taxed. This excludes all business from the tax.
Not under mine. No need for ANY filing - There ARE NO rebates, prebates or other forms of return, thus negating the purpose of filing.
Not under mine. All federal - not state or local - withholdings would now total 10% regardless of the persons income or wealth.
Its also worth pointing out that the FairTax aims to bring in at least as much money is currently brought in, thats some 3 trillion dollars.... I have no current way of means testing my flat tax but I expect it to fall far short of 3 trillion.
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I can see the definite benefits of the FairTax and agree that all the FlatTax proposals to date have been flawed. However, I believe I have built a better mousetrap in this regard.
Imagine this - My flat tax on the National level and your Fair Tax on the State level. Suddenly the states - NOT THE FEDERAL GOVERNMENT - would be awash in money, putting them in a much better position to flex their states rights. As it is now, the fed can basically blackmail states by withholding federal dollars until the state comes into compliance.
Shifting the power of money to the side of the state would also ensure that the federal government was ONLY involved in programs specifically enumerated by the constitution - as it couldn't afford much else.
