A "Fair Tax"? Really? Do We Really Want to Go There?
The trio of Republicans running for U.S. Senator from Tennessee held their first debate last night. In addition to the requisite childish fighting that accompanies any political debate and the obvious questions about immigration reform, candidates were asked their views on a "fair tax," a national sales tax that would replace the federal income tax. (I can't imagine how high a sales tax would have to be to pay for the war and bring down the elephantine budget deficit.)
Is the "fair tax" really on the Republicans' legislative agenda? High sales taxes always disproportionately hurt low income families, who spend a much larger portion of their income on goods and services than wealthy families. A "fair tax" coupled with a repeal of the estate tax (which is certainly on the GOP's legislative agenda) would widen the existing moat-filled-with-alligators separating the haves and have-nots and perpetuate the concentration of wealth in the United States. Bootstraps would no longer be sufficient for pulling oneself up.
Is the "fair tax" really on the Republicans' legislative agenda? High sales taxes always disproportionately hurt low income families, who spend a much larger portion of their income on goods and services than wealthy families. A "fair tax" coupled with a repeal of the estate tax (which is certainly on the GOP's legislative agenda) would widen the existing moat-filled-with-alligators separating the haves and have-nots and perpetuate the concentration of wealth in the United States. Bootstraps would no longer be sufficient for pulling oneself up.
1 Comments:
The "Fair Tax" plan taxes only new items (including groceries). Lower income families at a certain point pay no taxes because one of the aspects of the Fair Tax is a monthly prebate check that goes to all who are registered through Social Security (if I remember correctly). That means everybody, rich and poor, so only those who spend beyond subsistence pay federal tax.
Buy from the thrift store, pay no federal tax.
The two main advantages of the plan are its simplicity (no more tax code consisting of thousands of pages), and the fact that it abolishes the IRS.
It also puts the hidden taxes you're paying out in plain sight.
Learn more about it before you dismiss it.
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