The concerns raised over the national sales tax may seem substantive on the surface, but when you look at the context in which they are given, they don't stand up.
"Ah, utopia...how is this monthly rebate supposed to work? Does it not discourage people from raising themselves from out of a \"poverty level\"?
I doubt it- after all, if paying less tax were an incentive for people to want to be poorer, then the current income tax would do that nicely. To the contrary, with no taxation on income, the FairTax would encourage income- after all, EVERYONE (including those with substantial income) would be eligible to receive the prebate. In other words, there would be zero incentive to make less money, and all the incentive in the world to save it.
If you want to know more about the particulars of how the prebate system is designed, you could learn more from their site at http://www.fairtaxvolunteer.org/smart/faq-main.html#3
As for the complicatedness of the bureaucracy required to administer such a program, you must be joking- the current tax administrative system is required to manage taxpayers information based on a galaxy of forms, schedules, rules, and millions of pages of tax code.
By comparison, the FairTax system would be responsible for checking to see how many people live in a given household, and that's it. This is the sort of audit that could be accomplished in 20 seconds, by anybody capable of counting. The proposed tax system is a much simpler process any way you look at it, provided you're actually looking at it and really comparing it to the system we have now.Updated: 2005-01-01 08:22:07
Ah, utopia...how is this monthly rebate supposed to work? Does it not discourage people from raising themselves from out of a "poverty level"? Is not a vast usually non cost effective bureaucracy needed to implement and monitor a program such as this? Giving money back has its obvious drawbacks. Will not the historically downtrodden middle class wish they were "poorer"?
I agree with Mr. Journet when he says, "...shifting tax from incomes to sales will add to the problem. For low and middle income Americans, weekly necessities consume a larger proportion of the salary." However, that would not be the case with the Fairtax! That is exactly the reason the Fairtax has included a monthly rebate! The rebate, which every American household gets, will offset the Fairtax on the necessities.
Let's examine what happens when the Fairtax is passed. Immediately everyone would receive a pay increase because they would not have any income tax or Social Security and Medicare taxes deducted from their paychecks. Also, every household that wants it, will get a monthly rebate based on the size of the household (number of people) and the poverty level set by the government. For example, the poverty level set in 2003 for a family of four is $24,240. The Fairtax would provide a monthly rebate of $465 to the family of four to pay for the Fairtax on the necessities. The Fairtax is assessed only on new goods so the family could choose to save further by purchasing a pre-owned car or clothes. It would almost take more spending than they have money in order to be burdened by the Fairtax.
The FairTax will pay for all current government operations, including Social Security and Medicare because it has a broader tax base than the Income Tax. Right now not everyone pays income tax but everyone will pay the Fairtax including the approximately 50 million U.S. visitors, and income tax evaders.
The bottom line is that the Fairtax "UNTAXES the POOR!!!"
Please go to www.Fairtax.org for more infomation.
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