Fair tax vs income tax

It violates every equality law in the USA. Mercer Devil really needs to read up on the FairTax. There are two books written by Neal Boortz and John Linder that will explain in plain English what the FairTax. Supporters of a flat tax believe that the only fair income tax would apply an equal percentage to all taxpayers. Specifically, many supporters advocate a rate of percent.

Our so-called progressive tax system punishes the most productive members of society with a higher tax rate.

Under the Fair Tax plan , only the amount of income you spend gets taxed. Someone who makes $200and spends $1000 for example, would pay only 11. With five simple changes, the flat tax can be converted into a graduated income tax , steps that should be all too familiar with any student of the 20th century. Since it is simple, it would reduce the headache of annual tax preparation , but it would raise the tax burden for of taxpayers. Only the top of incomes would see a tax cut.

No one pays more or less than anyone else under a flat tax system. Both eliminate the complicated current income tax structure. But the fair tax would increase the cost of everyday goods and services by.

It would be the worst for retirees who live on a fixed income. To make the tax fair , the FairTax features a prepayment from the Social Security Administration to citizens and lawful residents. Based strictly on household size and not on income , the prepayment cancels out tax on consumption of necessities. But the tax rate would have to be prohibitively high to replace current federal income. Below we’ll look at a number of different aspects of the United States tax system to help explain why progressive taxes are generally more fair than flat taxes.

It will, as note require an iron-clad mechanism to kill repeal the 16th amendment and close the door to any attempt by an out of control elite political class to have both an income tax and a sales tax. Flat taxes are also unfair to seniors. Relative to the current income tax system, a consumption tax has the potential to increase economic growth substantially. Income tax is a direct tax paid by individuals on their income, sales tax is a pass-through tax charged on a sale Individuals pay federal and (unless you’re lucky enough to live in a state without it) state income tax. Access IRS Tax Forms.

Complete, Edit or Print Tax Forms Instantly. If there’s a positive to the leftward economic lurch among our political class, it has to do with the certainty that the imposed initiatives will fail. No matter the political party or supposed ideology overseeing it, when politicians seek to share the gains of the productive, their efforts come up short. Mission creep will also be an issue, with either a Fair Tax or a Flat Tax.

Politicians, present and future, will be eager to expand and increase the scope of the new system, and taxpayers must remain vigilant. If they are truly rich even less. We still end up taxing people before basic needs are met.

A wealth tax treats individuals just like corporations and taxes people after all expenses have been met. This is the fairest tax of all. It's way over due to replace all other taxes and deductions with a wealth tax.

However, these percentages could change drastically as state collection trends begin to surface. The rich will love it. Existing Federal Tax System As shown in Table we find that the FairTax saves $346. Thus, a national sales tax would amount to a net increase in total taxes on the poor. In other words, eliminating the income tax provides no benefit at all to those low- income citizens.

A national sales tax is a risky system that may not raise near enough money to support all our needs in defense, education, health care, etc. All tol the governor’s “ Fair Tax for Illinois” proposal would result in a 10. He pays on the first $7income and on the income that comes after that.

Proponents argue that the proposal would make the Illinois tax code fairer, provide tax relief to most Illinoisans, boost small businesses, and accelerate job creation.