Well the interesting thing about the Federal Sales Tax is that it is still progressive. Rich people will typically buy more goods and higher priced goods which will mean they will pay extremely more taxes. But at least they can't bitch about it because it is THEIR decision to buy more and higher priced goods.

I believe it would also help middle class people as they get stuck paying a higher percentage of Total Taxes/Income then anybody. Most middle class families are good at what to buy and when to buy it (bargain shopping, etc...) so I think the 15-20% saved in Property Taxes/Income would be more then what they would typically pay for a Sales Tax.

The only group I'm not sure about is the Poverty Class. Most probably pay little to no taxes then they get stuck with a 20x% sales tax it could effect them. I just don't know.

 

I KNOW the flat tax has a provision for tax-free status for families with income less than a certain level. However, Ive heard that the sales-tax would have something similar to food stamps, which would make many purchases tax-exempt for low income households. Thats the stickiest part of the sales-tax however, since it would be so much harder to implement.

My opinions on "progressive" taxes aside, either one of these plans is fair to all, and do not actively discourage sucess, as does our current tax code.

 

Any other countries using a similar system? Or is it just the Russians? I agree...... Thank You! It needed to be said!

 

This is the exact group that benefits the most.

Under the plan, we all get a prebate of x amount of $ from the government each month.

An example using their formula:
Let's say a family of 4 spends roughly $25k on basic necessities. About $5900 is spent on taxes here. The gov prebates this back in 12 payments over the course of the year. PLUS - they keep their ENTIRE paycheck. Not 1 cent of with holdings for anything.

Something to keep in mind - when you hear politicians throwing the poor out there as a problem with the FairTax, they're either lying (shocker, I know) about it or do not understand the program.

 

I thought Scott already explained this....it's for the factories OVER THERE that build the cars like Buicks for China, etc... nothing to do with us over here....

 

Yes he did. I think ppl are going through withdrawl, what with all the positive GM news lately! It's like they feel they must find something to bash them with.

 

Not so fast, guys, Doug is right........

Read the entire article........GM is sourcing components in India for cars and trucks that it will BUILD in India................

 

but will they stay there?

 

Yes...no plans to import cars or trucks from India.