- March 6, 2008 at 3:15 pm #256370
you really need to read on the fair tax propasal that is already out there.
It’s addressed all of these problems, and more.
With the fair tax as it is written, abolish the income tax, and charge a flat rate, which they are quoting 23% – you get a monthly prebate that gives you purchasing power up to what the level of poverty is, I don’t remember the figures on this, BUT on my and my husbands income we would come out $9000-10000 per year AHEAD with the fair tax.
go to http://www.fairtax.org and read it for yourself.
Thomas & Tracy Harris
TNT Quarter Horses home of:
TNTS Jack Be Blue – 2004 AQHA Buckskin Stallion
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Sent: Saturday, March 08, 2008 11:33 AM
Subject: Re: Budget101.com : taxes and the wealthy
I was responding tothe emailI quoted, which referred to a flat tax.
And is there really that much benefit to a federal sales tax?To generate the same federal tax revenue a tax on luxury goods would have to be over 20%. That’s over and above sales taxes that already exist.I think it would mostly deprive those with the lowest incomes of even the least luxuries. And what about corporations, what items that corporations purchase are considered non-luxury and which are luxury? Do we just forego all corporate federal taxes? Or do they pay on everything they purchase? Either way the cost of goods will either not change or more likely go up.
And the notion that the rich don’t pay federal taxes is patently absurd. While the top quintile may pay a slighly lower percentage than the middle quintiles (and the bottom quintile pays the lowest percentage) they definitely pay.
I’m not trying to be argumentative, it’s simply that U.S. economics and taxes are not simple and without a total crash or creating a total crash there isn’t likely to be anything but incremental changes.
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