@H2O MAN,
H2O MAN wrote:
ican711nm wrote:
A flat--uniform--income tax is not only truly fair
A flat--uniform--income tax is not fair and it does nothing to collect taxes from people that do not declare their income.
A flat--uniform--income tax is just more of the same, but with a different name.
The reason the Fair Tax is regressive is that it takes such a higher percentage of income from the lowest wage earners.
A family making $20,000 is probably spending $20,000 for the basic necessities of life: Food, shelter, clothing, transporation, etc. If you have a 15% Fair Tax, this family will pay $3,000 or 15% of their income in federal taxes less whatever the prebate is.
A family making $100,000, however, will also be paying $3,000 on the first $20,000 expended but this is only 3% of their income and they receive the same prebate.
For persons receiving public assistance, it would be necessary to increase the amount of their welfare check to keep them at whatever the government considers the bare subsistance amount to live should be.
The Fair Tax will not do anything to reduce cheating as those determined to cheat can avoid the taxman by simply going to a barter system and a fairly high federal tax on all consumption would encourage a whole lot more bartering.
A flat income tax assesses exactly the same percentage of taxes paid by all people no matter how much they make or how they make it and ensures that all working Americans have a stake in the system.
Pros and cons both ways I know. But I bet if we all keep putting our collection of heads together, we'll arrive at the best solution.