The Fair Tax...

[Jeff_in_Atl]

Just curious if anyone here is keeping up with the Fair Tax Proposal S25 and HR25. http://www.fairtax.org/

I heard Boortz talking about it the other day and he gave this little perspective of it that makes it just laughable that we have the current tax code. http://boortz.com/nuze/200705/05112007.html#fairtax

[Christopherrr]

All over it Jeff! I've read the book like 20 times...I'm a youngin' so it takes a bit of time to absorb a lot of it, but I spread it like wildfire...no pun intended, since GA has that big wildfire going on.

If anyone is against it, they've gotta be on something...not to open a can of worms...I'm just saying.

[Jeff_in_Atl]

All over it Jeff! I've read the book like 20 times...I'm a youngin' so it takes a bit of time to absorb a lot of it, but I spread it like wildfire...no pun intended, since GA has that big wildfire going on.

If anyone is against it, they've gotta be on something...not to open a can of worms...I'm just saying.

That's funny. He did you move to Snellville from Newnan? You are not far from me now. There is a car show in Tucker tomorrow night.

[Christopherrr]

Sure did...Tucker eh? Where? Well, I won't be able to make it anyways...headed to Road Atlanta for Formula D or Drift Atlanta as some call it. Are you going to the car show?

[Jeff_in_Atl]

It's on main street in Tucker. The banner was up Tuesday. They close the whole street for it. I hear they get over 50 cars there. The picture I saw had a Challenger with a shaker hood scoop in the forground. I don't know if I will go or not. I'd like to but I hate crowds.

[Christopherrr]

I hate crowds.

You sound like me...I start to get dillusional and freak out.

[Jeff_in_Atl]

I'm a little surprised by the low response to this question. This is actually something that could really boost the economy in the US. People love to talk about the US is exporting jobs. Jobs are leaving the US because of the oppressive tax system that punishes people who work hard by taxing them more and rewards people for being lazy in the form of government subsides. This would bill would single handily turn the US into a place where there would be not enough people to fill the jobs it would create. People like Diamler Chrysler would move their headquarters back to the US long with who knows how many other companies trying to get out of paying federal taxes in their own country. This is going to take us, the people, to stand up and tell our representatives in the government that we are tired of being taxed to death, the death of our country. Come on folks, take the time to read the bill.

[FroSSty]

I haven't had much time to read about it but it does raise a few questions. Would it get rid of state taxes to income?
How about State Sales tax? It is 6% in Michigan and probably going up.
Would it apply to large sales like houses and cars? A 23% hike in car prices and there would be more people buying used. If I am pre-approved for a loan of $200,000(just throwing a number up there) towards a house, that means I will have to find a house that is in the neighborhood of $160,000 asking price?
The next thing is, the business owners already don't like being the governments tax man with the 6% state sales tax, could you imagine what it would be like to be the tax man business owner who better not make a single mistake because there is major prison time for tax mistakes.
What about the small businesse just starting out? It is normal to be in the red for the first few years and just as easy to fall behind in taxes. Then how about the businesses that go under and then have a huge tax bill hanging over there heads long after they closed down the business?

Overall it sounds like a good idea. I am just not yet convinced it is feasible. What if we do switch and then it goes sour(like HMOs and No-fault insurance and the 6% Michigan sales tax that was supposed to end all property taxes and um, I pay up the wazoo in property taxes ) It is not like you can try it for a few years and then go oops that didn't work and switch back. Cuz then what about the poor fools who did buy houses and cars and boats and other huge purchases...

Again, I don't know much about it but from what I have read, these are some questoins I have. Although I am sure that if I read more into it, the answers would be plain as day. Please enlighten me. -Greg

[Jeff_in_Atl]

I haven't had much time to read about it but it does raise a few questions. Would it get rid of state taxes to income?

No. This is for federal not state. However there is a bill in the Georgia state congress to do this at a state level however they changed the terms and messed it up.

How about State Sales tax?

Not effected

It is 6% in Michigan and probably going up.

That's the state.

Would it apply to large sales like houses and cars?

Yes

A 23% hike in car prices and there would be more people buying used. If I am pre-approved for a loan of $200,000(just throwing a number up there) towards a house, that means I will have to find a house that is in the neighborhood of $160,000 asking price?

No. You need to read the bill. You are paying the taxes in what you buy now through the embedded tax that it costs for companies to keep up with the 10,000 page tax code. Removing the burden of keeping up with that would LOWER the cost of what you buy by about 20%. Then you add the 23% tax on top of that and you are back at the same price.

The next thing is, the business owners already don't like being the governments tax man with the 6% state sales tax, could you imagine what it would be like to be the tax man business owner who better not make a single mistake because there is major prison time for tax mistakes.

That exists right now. Look no further than Enron. Tell me which would be easier to make a mistake at, complying with a 10,000 page tax code or taking what you bring in and multiplying it by 23% and sending the feds a check?

What about the small businesses just starting out? It is normal to be in the red for the first few years and just as easy to fall behind in taxes. Then how about the businesses that go under and then have a huge tax bill hanging over there heads long after they closed down the business?

That's an easy one. You only pay the tax on what you bring in. like I said earlier, one of the main reasons new businesses get behind on taxes is because it's too difficult to keep up with the 10,000 pages of tax codes. My X wife got caught in the trap of the 10,000 page tax code when she missed one little item in it and now has to pay thousands of dollars in back taxes. Just think if the tax law was send in 23% of what you bring in to the feds how much easier it would be for a new business person to keep up with.

Overall it sounds like a good idea. I am just not yet convinced it is feasible. What if we do switch and then it goes sour(like HMOs and No-fault insurance and the 6% Michigan sales tax that was supposed to end all property taxes and um, I pay up the wazoo in property taxes ) It is not like you can try it for a few years and then go oops that didn't work and switch back. Cuz then what about the poor fools who did buy houses and cars and boats and other huge purchases...

Again, I don't know much about it but from what I have read, these are some questions I have. Although I am sure that if I read more into it, the answers would be plain as day. Please enlighten me. -Greg

Should we keep a tax system that we know is so screwed up forever because we are afraid what we try might be worse? What could be worse than a tax system that punishes hard work and rewards laziness.

The only thing that I don't like about it is the prebate. That still gives the politicians a political tool to use to get votes. "Choose me and I'll raise your prebate." I think that should be eliminated and the overall tax rate lowered to compensate. It also leads to a giant government branch that will have to employee thousands of people to process. That is a waste of money.

[Christopherrr]

What could be worse than a tax system that punishes hard work and rewards laziness.

Amen brother!

[Joshu]

Compared to everyone else I know, I am probably the most into politics and such and I haven't really heard much about this fair tax. So what I am trying to say is that for it to be a success, it must be more widespread for it to even have a chance. I don't think Americans are afraid to change their tax system but most of them A) Don't completely understand taxes or B) Could care less.

It's sad I know.

[Joe 1320]

The problem that I see is that if you switch everything to a sales based tax, the result could be more dollars flowing out of the country and being spent in places like China, and that....... would be bad.

Something needs to be worked out. You are taxed when you earn money, you are taxed when you spend it, you are taxed when you make additional money off what you are allowed to keep, you are taxed on the property you own, you are even taxed when you die and pass on your wealth. I would just rather pay it once than every time you turn around. Check the taxes on your cell phone bill and that alone could open your eyes.

[Jeff_in_Atl]

The problem that I see is that if you switch everything to a sales based tax, the result could be more dollars flowing out of the country and being spent in places like China, and that....... would be bad.

I don't understand.

How about this, when someone comes to the US from another country and buys something here they are paying taxes. Florida discovered that many many years ago. That way tourist help pay the Florida taxes. Otherwise only the people that lived in Florida paid taxes. Then they would be paying for services for the tourist. Let's do the same thing Florida did on a national scale. Then money would be flowing into the country.

[ryan34]

I live in DE and have no sales tax, and while thats been nice, i would rather pay a national sales tax and not have an income tax. Just for the fact that i don't buy much, and it would really help me save money for when i do purchase something. Like a house for example. I'm for it

[Joe 1320]

I don't understand.

.

It's up to the organization that processes a sales transaction to collect taxes. Foreign countries would have to get on the same page to prevent money from flowing elsewhere. Think of it this way......

You live in Florida, you log on to the internet and purchase an item in California. California does not collect sales tax for Florida. There is no sales tax collected unless the item is delivered to the same state as the purchase. if the government puts large sales taxes in place, more people will shop out of the country and have items shipped in via UPS or the like. It will take quite a bit of doing to prevent this from happening.