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re: Would you support FairTax plan?
Posted on 4/17/25 at 4:39 pm to scottydoesntknow
Posted on 4/17/25 at 4:39 pm to scottydoesntknow
The actual Fairtax? Yes please. No tax on used items, no tax on basic food stuff, no income tax. The Prebate to cover non food essentials. You would see a boom in repair shops and a market move away from disposable big ticket items. Do that and kill the credit card industry and we could see the country get back on solid footing
1
Posted on 4/17/25 at 4:43 pm to VoxDawg
quote:Thank goodness tariffs don't work like that. Phew!
Under the current income tax system, approx. 21-27% of what makes up the retail price paid at the register are embedded corporate income taxes that are passed along the distribution chain from the manufacturer all the way down to the retailer. These corporate income taxes are ultimately paid by the consumer.
Posted on 4/17/25 at 4:48 pm to Smokeyone
quote:
The actual Fairtax?
Yeah the specific FairTax plan, not just a consumption tax
Posted on 4/17/25 at 4:49 pm to Houstiger
quote:
I think it should be a flat 20% income tax on everyone, no deductions.
FICA alone is 15.3%. We couldn't even service the debt with the remaining 4.7% 
Posted on 4/17/25 at 7:02 pm to Taxing Authority
quote:and here in lies problem number one with a Fiat monetary system like we have currently been shackled with for over 50 years
We couldn't even service the debt
Posted on 4/18/25 at 7:01 am to wareaglepete
quote:
I’m all for consumption tax, but 40%, hell no.
As I mentioned in my quoted portion from where I laid it out a few years ago, most opposition to the plan comes from folks who need to misrepresent the plan (deliberately or out of sheer ignorance) and then proceed to whoop the hell out of that strawman.
The most common tactic is to (misre)present the tax rate on an inclusive basis vs. exclusive.
For ease of numbers, we'll say the rate is 25%. If an item costs $1 today under the current income tax system, then about $0.75 is the actual retail price and $0.25 of that is the series of embedded corporate income taxes that were incurred as the item goes down the distribution chain and end up on retail shelves.
That means that 75% of the item's price is the good itself at retail and 25% of that are embedded corporate income taxes.
Under the hypothetical version of the Fair Tax we'll play with using round numbers, the item costs $0.75 and the national retail sales tax is $0.25. That gets us right back to that same $1.00 price at the register, but we're done. It's marked as $1.00, you pay $1 and the transaction with the government is over. (This doesn't include any state/local sales taxes. That's up to you to discuss with your state).
What the detractors do is they calculate the tax rate on an inclusive basis with respect the the cost of the good. It still costs $1, but they seek to poison the well by telling folks "They're lying to you! The tax rate is really 33.33%!"
Here's how: They demonstrate the rate as a portion of the goods-only portion of the product. In this case, they divide the $0.25 NRST amount by the $0.75 cost of the good and reach the 33.33% number.
They then assume the role of the chess-playing pigeon and proceed to strut around the board, having convinced themselves they've pulled some major coup.
The other misdirection they employ is to avoid mentioning to anyone listening that there's no reason for that $0.25 embedded in the current cost must continue to be a part of the retail cost of the item. No IRS = No income tax = No reason for embedded corporate taxes baked in.
The next step is to imply (or more often straight up state incorrectly) that "Proponents of the FairTax want to add a 33% tax on top of what you already pay at the register! We won't stand for that! We fight for consumers!" (Notice how that approach rolls in the inclusive vs exclusive tax rate fallacy for additional rhetoricla weight?)
Trump took that approach vs Desantis during the 2024 primaries and I disagreed with it when he did it just like I do when liberals do the same thing.
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