re: #346 SixDegrees

It’s proposed at the Federal level only, where it would replace the income tax with a Federal sales tax; some variants have exemptions for food and other items.

But therein lies the rub. One problem, as you point out, is the array of taxes it doesn’t eliminate - Federal inheritance taxes; capital gains taxes; Social Security taxes and others would all remain intact. So would all state and local taxes, but that’s to be expected. Second, as my accountant has pointed out, Congress would be only to happy to pass a Federal sales tax - but it wouldn’t replace anything. It would be added on top of existing taxes, as surely as a gaggle of Congressmen will come arunnin’ if you yell “Sooooey!”

It sounds appealing on paper, but the difference between the Fair Tax and income tax would be indiscernible in real life.

Untrue -

It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.

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