Why are people worried about a Fair Tax or Flat tax when the issue is spending?

Question

Is this not tantamount to having incredible amounts of credit card debt and instead of looking at how to cut one's expenses, to only be focusing on changing jobs?

Answer 1

Have you ever spent 3 days just trying to fill out your tax forms?  Even when you call the IRS for answers, you can get 2 entirely different answers from different people.  Furthermore, those people who manage to shelter their income in a variety of ways and pay a lower tax rate than many who actually earn much less will have to pay taxes each time they purchase something.  The very poor will receive help to cover the basics so they won't suffer.  The KEY WORD is FAIR!

Answer 2

You are correct.

The point of how we collect the taxes is moot if Congress and the President keep spending more than we take in.

Answer 3

The people who "worry about" (support) the Fair Tax aren't trying to fix that part of Government.

The Fair Tax is designed to be revenue neutral, meaning it provides the Fed. Government with the same level of revenue as the current system.

The main benefits are that it removes the highly intrusive IRS from our personal lives and information.

It eliminates the incredible costs to business for compliance that they must expend today.  These costs are embedded in everything you purchase today just as much as the other business expenses are.  Studies show that it may add an average of 23% to the price of things today.  

Because you no longer pay tax on what you make, just what you spend, it encourages saving money.

Because corporations do not pay taxes (all costs are ultimately included in the price a business charges - including taxes), in the end only individuals pay taxes (you and me).

It also captures revenue from the underground/illegal economy - when they spend their money.

Finally, you keep hearing about (evil) U.S. Corporations who leave in order to avoid paying all of the corp. taxes they owe . . . well - maybe that is an indication of how our current tax system is not very good for business and guess what ? (for all the liberal bed wetters) Business is where people work!  

It is a relatively simple plan, however, EVERY TIME I've seen someone argue against it, they either don't have the facts straight - or - have downright lied by changing the facts (like the rates or what would get taxed, etc) and then saying that it won't work.

I suggest you get your info straight from the source in order to get all the facts and understand what it could mean to our economy.

http://www.fairtax.org/site/PageServer

Answer 4

I'm not worried about Fair Tax, The idea has floundered for years and its chief proponent, Rep Ron Pau is a political footnote.

Answer 5

AMEN!!!!!

Answer 6

The tax issue involves things like state and federal taxes charged/withheld from your income.  Fair tax refers to a percentage of income whereas flat tax refers to a fixed dollar amount.

Whether or not you spend more than you make is not for the government to regulate.  Besides, those fees are interest rates set by the credit card companies based on your credit score, revolving balance, etc.