What do you guys think of this?

Distribution of the FairTax burden - Wikipedia, the free encyclopedia

23% sales tax but no income tax and also aboloshing the IRS.

I think it's probably one of the best ideas for fixing the tax problem out there.
I especially like the fact that it will end class warfare in politics.

You will find that many who don't understand it will try to shoot it down without properly educating themselves.

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"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"

But its the Wealthy who needs to pay their fair share.So my idea is this Why not a luxery sales tax? Like for example Cars that cost over $40,000 needs a 15% luxery sales tax.Jewlery like Watches cost over $500 needs a 15% luxery sales tax.Diamond ear rings,Rings and necklaces needs a 15% luxery sales tax.Yachts cost over $100,000 needs a 15% luxery sales tax. Homes cost over $500,000 needs a 15% luxery sales tax and Airfares when you travel out of north america if you sit in first class needs a 15% luxery sales tax. Now Thats fair cause theyre No Loopholes for the wealthy to get out of.Thats my Fair tax

The wealthy already pays their fair share.
BTW this thread is about the Fair Tax Plan not the steveox tax plan

__________________
"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"

If you look at the chart there is a minor increase in the effective tax rate for people earning between $20,000 and $30,000 a year, and major savings for everyone else.

I get it that we save some money by abolishing the IRS, but I still don't understand how so many people can pay less, and yet the revenue is still the same.

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

I don't know how the revenue would remain the same myself. Also what would happen at the county, state, and city levels?

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Is our children learning? -George W. Bush

"I think—tide turning—see, as I remember—I was raised in the desert, but tides kind of—it's easy to see a tide turn—did I say those words?"—Washington, D.C., June 14, 2006

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004

This is just a guess, but since it is a sales tax you will suddenly have all of the people at the lower ends of the income brackets who don't currently pay any federal income taxes paying the sales tax to the federal government. Since we all have to buy certain things, every person will pay at least some.

The bureaucracy established for compliance and rebates should easily match or exceed the size of the IRS.

I find it interesting that those projections are dependent on the US retaining a large middle class sector while economic reality points at a two-tier society.

The revenue stays the same because under the fair tax the tax base is wider. in other words those who do not usually pay income taxes pick up the slack. I.E. tourist and drug dealers for example

__________________
"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"

Drug dealers? You mean pharmacists?

__________________
Is our children learning? -George W. Bush

"I think—tide turning—see, as I remember—I was raised in the desert, but tides kind of—it's easy to see a tide turn—did I say those words?"—Washington, D.C., June 14, 2006

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004

I see the fallacy of the argument, they are assuming that expenditures = income.
But I believe there are no taxes on investments, which means that a person with a large income only pays taxes on the small portion of that income that he spends on new goods.
A Picasso isn't new, so if you drop $40 million on some Cubism, it's tax free.
If you put 90% of your income into the Stock Market, that's tax free too.

The fact is if the very wealthy pay less, then the middle class has to pay more to keep revenues at the same level.
There just aren't that many tourists and drug dealers to make this work.

__________________
“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

I don't follow. Sure some people will buy used items but for the most part, the rich buy more so they pay more and the middle class buy less so they pay less. Obviously the exact details and forecasts of potential loopholes and likely buying trends would need to be calculated but in principle its fair.

Do pharmacists usually not pay taxes?

__________________
"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"

But there are plenty of illegal aliens

__________________
"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"

Do you really think that the additional sales tax paid by illegal aliens will allow taxes to be cut from 20 to 30 % for most Americans?

This tax rate is based on income=expenditure.
But if someone makes 10 million, and only spends a million and invests the rest, they will only be taxed on one million.
While investing 90% of one's earnings is a real possibility for a person with a ten million dollar income, it's not really feasible for a family of four on an income of $50,000/year.
And while it's possible to avoid the tax on some things, like buying a used car, no one can buy used food or used medicine or used gasoline.
So this this "Fair Tax" in practice would be extremely regressive, and would end up shifting the tax burden onto the middle class to the benefit of the extremely wealthy.

__________________
“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address