Ideas for Improving America
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I agree....
Thu May 14, 2009 9:23pm

Which is why the 'fair tax plan' provides a rebate (called a pre-bate) that is paid to each individual. This returns to each individaul the amount of taxes that they spend on the basic essentials...

For a hypothetical. If we decided that the sales tax rate was going to be 25% and we decided that one is going to spend 20,000 on the basic essentials to live for a year... that means that the individual would pay $5000 in taxes. One would recieve that amount each year prorated monthly...

IOW, those who only spend enough to survive would pay no taxes... But the second one goes over that, one starts paying 25% on everything one spends.

  • The personal exemption of perhaps $6000 per personDavid F Mayer, Thu May 14 3:34pm
    would be so that poor people do not starve in order to pay their taxes. Since it is the same for everybody, and it affects ONLY the poor significantly, it would be a requirement for a tax code that... more
    • I agree.... — Sprout, Thu May 14 9:23pm
      • I prefer income tax to sales tax.David F Mayer, Thu May 14 9:38pm
        Sales tax hits everybody. Income tax hits people only when they have income. Retirees, unemployed persons, etc, etc, would not pay any income taxes, but WOULD pay sales taxes. I say, pay it when you... more
        • Likewise.Poppet, Fri May 15 9:19am
          Sales Taxes are, by their very nature, regressive. Even when exceptions are made for certain necessities like food and medicine, the overall effect is to collect a far greater portion of the income... more
          • VAT = Universal Sales Tax at All Levels. It stinks.David F Mayer, Fri May 15 10:25am
            VAT is another example of how "liberal" Europe kisses the butts of the rich guys while taxing the hell out of the working classes. So are "Payroll Taxes". They are equally regressive, having a cap on ... more
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