Comment

The Tax Code and why 'Fair Tax' is Horribly Unfair

8
ausador11/04/2011 11:43:50 am PDT

re: #2 Buck

The national sales tax forces people, who today avoid paying taxes, to pay taxes.

Anyone who pays the national sales tax, but is below a certain earning limit can get a refund for the tax they pay. (That is done currently in Canada). For example if a person earns $13,000 in a year it is recognized that they probably spent all of it on goods and services. It would be estimated that they paid $1,000 in the sales tax, and next year they would get a government cheque for that amount (split up into two or three payments).

The flat tax rate for people who do file their taxes also picks up people who avoid paying taxes. The wealthy that have used tax shelters and other methods to reduce their tax rate would be unable to reduce it below the standard.

The flat tax rate for corporations would pick up companies that use tax shelters and other methods to reduce their tax rate. They would no longer be able to avoid paying tax on their profits.

Why not just simplify the tax code and eliminate all these special interest write-offs and loop-holes while maintaining a progressive tax standard at lower percentages? That way everyone would at least pay a little something in to the IRS on any earned income?

The national sales tax Idea is a completely bogus and entirely regressive tax in that it only taxes money spent to buy goods. Poor and lower middle class families required to spend 100% of their income week to week just to get by and pay the bills would have to pay tax on every penny they made. Those making enough money to sock some or most of it away in a bank account or investment would not have to pay a penny in tax on their savings/investments.