3 replies to this topic

[Emax]

We've had taxation discussions before: "The IRS Is A Blowhole" was a dedicated one, but we've also kicked the tax issue around in assorted (and sorted) political dogfights.
Let's now talk about this proposal to totally change the taxation structure:

The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

This idea has been around for a while - and has repeatedly been proposed in congress. I've recently read a book on it and visited the fairtax website.

Book: http://books.google.com/books?hl=en&id...5&ct=result


Fairtax website: http://www.fairtax.o...name=about_main

This post has been edited by Emax: 20 October 2008 - 11:18 AM

[Andoman]

I love the idea, it places a tax based on how much you spend rather than earn. That way everyone is treated as an equal. Last time I looked into this however they had not quite hashed out how to tax food items, or rather if they should tax food. The hardest part of this plan would be to send the pink slips to the IRS employee pool. I'm not sure how many people work for the IRS but I'd have to imagine at least 20 or 30k people would get laid off, which the union would fight to the death.

[Emax]

Andoman, on Oct 20 2008, 03:58 PM, said:

I love the idea, it places a tax based on how much you spend rather than earn. That way everyone is treated as an equal. Last time I looked into this however they had not quite hashed out how to tax food items, or rather if they should tax food. The hardest part of this plan would be to send the pink slips to the IRS employee pool. I'm not sure how many people work for the IRS but I'd have to imagine at least 20 or 30k people would get laid off, which the union would fight to the death.

If you check out the site (or the book), you'll find that the proposed bill refunds in advance the tax on purchases of basic necessities - based on the number of people in a household - from one to however many. These checks (or electronic deposits) would be sent on a monthly basis.

[attachment=16078:FairTaxP...ined2007.pdf]

This post has been edited by Emax: 20 October 2008 - 02:50 PM

[zeedotcom]

It is a great idea, but it will never fly because those with the most money will fight it because they like the current deduction system.

I didn't see anything in the pdf regarding business taxation. That would have to play out a bit differently I would think?