Fair Tax

[brimic]

I don't pay yearly taxes on my furniture, appliances, guns, etc...why should land and house be any different

Don't give them any ideas.

[Scout26]

If it is a Flat (Income) tax, then capital gains, dividends, etc.  get taxed at the same rate as income (I mean, you are using it as income, correct?)

If it's a Fair (Sales) tax, then no they do not get taxed.

But either way you pay all your taxes on the first Tuesday in November.  This will allow the various .gov entities to know, to the penny, how much money they have available for the next year (fiscal years will be 1 Jan to 31 Dec.)   And they can only spend what they have taken in. (That might require some work at various *cough* Federal *cough* levels.)   No more budget trickery and gimmicks like the state of Illinois does with it's budget.  Well, at least a lot less.

Having to write several large checks might induce the voting public to pay the fark attention, and vote to make serious changes.  Not just vacuous "Change"


  

[HankB]

I don't pay yearly taxes on my furniture, appliances, guns, etc...why should land and house be any different

Don't give them any ideas.

When I was a youngster, Illinois had such a tax - as did other states - on individuals. What was taxed varied by state, but its unpopularity and widespread noncompliance led most states to abolish it, except for businesses. (I understand some states still collect it on titled property like cars.)

I remember my Dad tearing up the form when he got it in the mail - he said "It's none of their <expletive> business what I have in my own house!" Most people agreed, and general personal property tax went out the window except for businesses, which in some states are taxed on everything from office furniture to inventory.

[roo_ster]

I don't pay yearly taxes on my furniture, appliances, guns, etc...why should land and house be any different.

Personal property tax is one way states & localities do tax such things.  House has 3 BR, 2 bath, and a living room?  It ought to have such & such furniture....here is your annual personal property tax bill!  Can't get your auto registered without your PP tax receipt...Also, some states tax you on the value of your auto directly or indirectly with licensing fees based on your auto's value.

[Scout26]

Personal property tax is one way states & localities do tax such things.  House has 3 BR, 2 bath, and a living room?  It ought to have such & such furniture....here is your annual personal property tax bill!  Can't get your auto registered without your PP tax receipt...Also, some states tax you on the value of your auto directly or indirectly with licensing fees based on your auto's value.

That was the only thing I hated about Indiana.  I remember they had like a $50 min PPT on cars.  I was a high school kid working at MickeyD's, scrimping and saving to pay for gas and insurance when I get a bill for $50 from the state for a car I paid $75 for!!! 

[Perd Hapley]

That was the only thing I hated about Indiana.  I remember they had like a $50 min PPT on cars.  I was a high school kid working at MickeyD's, scrimping and saving to pay for gas and insurance when I get a bill for $50 from the state for a car I paid $75 for!!! 

This. The last car I bought I paid $1500, cash. It was a huge expense for us, but it enabled my wife to keep her job, half-an-hour away. And while we're trying to stay afloat after that, we get a bill in the three figures? Yeah, way to redistribute the wealth. 

[slingshot]

I generally support the concept of the fair tax and I supported the alternative approach by Herman Cain's 9-9-9 approach which is more traditional in the sense that the IRS would not necessarily be eliminated for all practical purposes.  I feel sure if people got serious about it, there would be some give and take.  One of the things that bugs me a little is that more than likely retirement money that theoretically could be taxed at a lesser rate when these monies become available, is taxed at the Fair Tax rate when it is spent just like any other money.

Many that do not understand believe the Fair Tax is a value added tax (VAT) pushing up the cost of goods and it would be in addition to the current income tax.  The income tax has to be eliminated first, but you have to have the alternative system in place ready for implementation before it happens.

There's too much profit in the current tax system for such individuals and politicians (no more ability to say "vote for me and i will use the gov't to hold a gun to these guy's heads and take their money and give it to you")

This is a big problem with the current tax system.  Lobbists would not have their power to influence the politicans that they do now and be able to get specials breaks for their constituents that is written as an add on to a otherwise good bill on line 698.  I would like to see the politicians busy and voting for small things are just fine with me.  Keep it simple stupid is my rule.

The "monthly check" would actually be added to and bank account and accessed by a debit card and probably administered by someone like VISA or MASTERCARD.  That particular system works pretty well now.  If you don't spend the money, it just accures in the account.  

In theory, at a retail level, the price of manufactured goods would come down because the taxes paid by businesses would come out of the product.  I doubt it would be a one to one kind of thing.  I would also assume that businesses would have to adjust their pricing and the market (supply and demand) would dictate ultimately what the price would be just like it is now.  It would level the playing field which is something Mr. Obama would like to do.  

Mitt Romney's or Geoge Soros' income from investments would not be taxed unless he spent it just like anyone else.  That would result in a huge amount of money in the system that might be more available for investment purposes.  But they could adjust that kind of thing a bit based on political pressures during the legislation development and voting.

I'm sure things would have to be tweeked a bit.

[geronimotwo]

with the fair tax, what happens to the money spent on imported goods?  the person buying the goods gets taxed, but the company taking the money overseas gets away scott free?

[MechAg94]

I saw Ron Paul on a show once.  He was asked what he would replace the current income tax with.  His answer was Nothing.   Get rid of it and cut budget accordingly. 

[slingshot]

The Fair Tax is geared toward taxing individuals on the premise that most taxes paid by businesses are passed on to consumers as a higher price for the widgit sold.  A  company spending money oversea's would not pay a tax (as I understand it) on that spending other than what was charged overseas.  But if an individual spends money overseas is there a tax on that money spent?  I presume there would be, but I don't know how it would be collected.  Any profits that are spent here would be taxed when it was spent at the consumer level.  If the same company buys widgits here, there would be no tax until it is sold retail.  It is not a VAT tax.

Again the Fair Tax is not a tax on business.  The 9-9-9 plan offered by Cain taxed businesses at approximately 9%.  If you build up a big pile of money, there is no tax on the income produced until it is spent at the consumer level with the fair tax. With the 9-9-9 plan, interest and other income would be taxed at 9%.  Rich people spend more money than regular people.  The debit card (kick back from the government) is an attempt to equalize out things and make it more progressive in the sense that poor people spend more of their available money than rich people.

[Levant]

I don't think you understand, everyone gets a rebate. You are being refunded your money.

Don't rebate my money.  Don't take more of my money than you need and then pretend to give me my money back.  If I'm robbed of a thousand dollars I should feel better that the robber left me 20 dollars for cab fare before dumping me in the alley?

[Levant]

It doesn't matter what you call the federal taxes or how they are assessed.  Unless the government cuts spending our taxes will never go down.

[Tallpine]

It doesn't matter what you call the federal taxes or how they are assessed.  Unless the government cuts spending our taxes will never go down.

And then there is the "inflation tax" caused by deficit spending and creating money out of thin air. 

[slingshot]

And then there is the "inflation tax" caused by deficit spending and creating money out of thin air.

That of course assumes you are making more money.  In my case, I made more money three years ago than I will this year.

[Tallpine]

That of course assumes you are making more money.  In my case, I made more money three years ago than I will this year.

No, things still cost more whether you make more money or not.

The dot guv spends money it doesn't have and prices go up, then they pay it back (well, not really... they borrow more money to pay back what they borrowed last year) with dollars that are worth less.

So in addition to all of the obvious taxes, the govt is stealing the value of what little money that you have left