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The United States Income Tax system should be eliminated in favor of a national sales tax... Agree? Disagree? Ask a Question

The United States Income Tax system should be eliminated in favor of a national sales tax... Agree? Disagree?
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7 Answers

Not a sales tax, but the system known as the FairTax (yes, another case of a flowery name to disguise the flaws).

It doesn't seek to lower taxes in any way, but to make it clear who is paying them (the consumer, in all cases, just as it is now).

In principal I would favor one, but I reserve judgment until I have seen the details of any such proposal.

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7 Replies to deleted user's answer

Unfair? People who buy a Lamborghini will likely pay $500,000 more in taxes than someone who buys a Kia. What's so unfair?

As it is now, if you hire a CPA to do your taxes not only will it pay for the cost of a turbo tax program many times over, you will discover that poor people can benefit from loopholes just as much as rich people -- albeit on a smaller scale but that's only because they started out with less.

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Most lower income folks to not pay ANY income tax now. Read the "Fair Tax" it takes into account things that are essential to life and gives you money for them.

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Translate, please look into the Fair Tax. It's an excellent fix to a lot of the problems our current tax system creates.

It would draw business from foreign countries because Corporate taxes are eliminated. It would leave no way for illegal aliens to dodge taxes because they're consumers. No more pay under the table because there's no income tax to dodge. People would be much more active on the real estate and stock markets because there would be no capital gains tax!

It's not regressive because there is a "Prebate" figured into the Fair Tax. Every month a check is sent out to the head of each household to cover the sales taxes paid on essential items. To say that the poor pay a higher percentage of their income is plain wrong. The tax would be 23% for everyone. Finally, It would wipe out the "embedded tax". The embedded tax is the hidden cost in a good or service that is created by the several times that the good or service is taxed through its production.

Example) Bread. A farmer pays taxes on his land, his workers, his equipment, etc.. A wheat mill pays taxes on its workers, property, equipment etc... Taxes become a very real part of the bottom line of these companies, and the taxes become a part the cost of their good or service. The average embedded tax is about 22% of the total cost. The Fair Tax is a 23% sales tax. We're eliminating inefficiencies and stimulating the economy. Who could disapprove of that???

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The "Fair Tax" should be implemented right now, the economy would take off like a skyrocket. The current tax structure gives politicians too much power and control, they will probably never give it up.

1 Replies to hideaway's answer

Fixing the Tax problems is not a "magic pill" to fixing the economy. Fixing the economy will require much more, but finding an equitable system to tax the people that most can afford it, and not tax the people that can least afford it, is a beginning. A Flat Tax structured tax system is a "Fair Tax"

COOEE !

(Australian call to get your attention)

http://en.wikipedia.org/wiki/Cooee

Um, We have Income Tax and Sales Tax.

Because we got a 10% Sales Tax it didn't mean they dropped the income tax.

1 Replies to Aussie's answer

Well that's not the Fair Tax.

Yes, I would be in favor of a single point tax. By that I mean that I could care less if it were a "sales tax" or an Income tax, but that I would prefer for all taxes to come from one single point. I feel like the government has found a way to pit poor people against rich people when in fact we are really all in this together.

What politician these days, doesn't use the "tax the rich" slogan to get elected and then takes rich peoples campaign contributions and promises that there will be certain loopholes provided for them?

Politicians have turned this into an "Us against them" between the wealthy and the poor and its NOT. Its an us against them between politicians everyday citizens.

Forget about punishing the rich for being lucky or smart and forget about the poor getting handouts from the government to buy their vote. Everyman should pay his fair share and we should all KNOW what we are really paying. If the poor people of this country want to pay less taxes they should not do so at the detriment of the wealthy, they should do so by finding ways to force the government into cutting back on its graft, corruption, its bureaucracy, and its waste.

10 Replies to jondough's answer

Hip Hip Hurray. Three cheers to jondough for pointing out the issues in his last paragraph, which I repeat - "finding ways to force the government into cutting back on its graft, corruption, its bureaucracy, and its waste.."

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Thats a typical liberal reply. Im NOT for giving handouts to ANYBODY much less the wealthy. I dont think anybody should get a free ride, Im all in favor of everybody paying their fair share.

You liberals think your helping poor people by elevating the "class" warfare of rich against poor, but your not. You are locking poor people into poverty by taking responsibility out of their hands and putting it in governments hands. I guess that helps protect your voter base though, so I can see why your all for that.

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Are you trying to deny that YOUR a liberal?? LOL

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If you do look at History with an "open-minded" viewpoint, instead of tunnel vision,, there was a lot of progress toward lifting them out of poverty. The programs were working, however, the Dems/Libs were losing their voter base, so they imported a voter base by allowing immigrants that would end up on the welfare rolls. Plus, with millions of illegals that somehow get a Driver's Licence and register to vote at the same time, we have a country of people dependent upon government programs. And the Dems/Libs have a broader voter base. What do you think ACORN has been up to all these years? I will give credit to a lot of the Hispanics, a large number of them actually have "work ethics". But that doesn't negate the fact that "illegal" still means "illegal".

I'm not aware of any programs recently that were wildly successful at lifting people out of poverty.

There were a number of programs that helped the individuals out of poverty by getting them off the streets and helping them to finish their education. Plus, there were programs to give them career-oriented training. Programs that helped them become mechanics, barbers, Hair Stylists, Chefs, etc and even such careers as Engineers and Architects for those that could complete the training. The problem was that the demands overwhelmed the funding and most of the programs crashed because of it. And no, these are not recent programs. They were, however, programs that worked. Too many people in need and not enough funding.

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4 Replies to deleted user's answer

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