Fair tax

Cyclonepride · 03-31-2007, 07:40 AM

Has anyone on here looked at the Fair tax initiative? From what I have read and heard, it makes a lot of sense. The numbers are somewhat startling, but it gives you an idea of just how much tax is packed into everything else right now, and how the government gets everyone coming and going. It would make the tax system much simpler and much more transparent. Check it out: www.fairtax.org

herbiedoobie · 03-31-2007, 08:05 AM

And with Democrats returning to power (not that the Republicans were really any different) you can kiss any equitable distribution of taxes goodbye.

brianhos · 03-31-2007, 08:40 AM

The problem is not really a democrat vs republican thing it is a power thing. No one is going to want to make things simple for you, the lobbyists won't like that, then won't give kickbacks to the politicians, who in turn would not get re-elected and then would lose their power.

It benefits those in power to make the tax system as hard as possible so the masses do not really know how they are being raped. Think about it for a sec, you are being taxed 30% on the money you make, 5% for SS, 5% more for medicare, 8% state tax. So now you are down to $.50 on the dollar. Then you are taxed 6% soon to be 7% on any money you SPEND! If you save it or invest it you are taxed there...

It never ends... But how else would the gov have enough money to fund rain forest parks in frickin Iowa!

Off my soap box, I guess you can tell I just did my fed taxes this week and I am pissed off at how much money they stole.

TykeClone · 03-31-2007, 09:02 AM

Originally Posted by brianhos

It benefits those in power to make the tax system as hard as possible so the masses do not really know how they are being raped. Think about it for a sec, you are being taxed 30% on the money you make, 5% for SS, 5% more for medicare, 8% state tax. So now you are down to $.50 on the dollar. Then you are taxed 6% soon to be 7% on any money you SPEND! If you save it or invest it you are taxed there...

It's more like 40% - 15.3% FICA or Self Employment taxes (even if you don't see it, you pay both halves of the social security and medicare taxes). Most people are in the federal 15% bracket, and most people in Iowa hit around the 6-7% rate.

Tax rates would be lower if everyone would be required to estimate instead of being forced to withhold.

brianhos · 03-31-2007, 09:31 AM

Originally Posted by TykeClone

Tax rates would be lower if everyone would be required to estimate instead of being forced to withhold.

No forced withholdings would be a great thing. I would love to hear the uproar of the populus every april when they had to write a check to the fed for $25k. It would sure change the common "I don't pay taxes, I got a refund" mentality

TykeClone · 03-31-2007, 09:44 AM

Forced withholding is the current law and is how it is done now. Estimates are paid by self employed people or those who have significant non-wage income - just a minority of people.

Cyclonepride · 03-31-2007, 10:37 AM

Originally Posted by brianhos

No forced withholdings would be a great thing. I would love to hear the uproar of the populus every april when they had to write a check to the fed for $25k. It would sure change the common "I don't pay taxes, I got a refund" mentality

Exactly. Right now taxes kind of operate in the same way that your investment guy tells you.......just have it taken out of your check, you never have it and you'll barely miss it. They are counting on that. This system keeps the actual taxes that you pay in the forefront of your mind. Try sneaking a tax increase through when everyone notices it the minute they buy something.

Just a note if you like the idea, you can sign up for a fax campaign through their website. Takes about two minutes, and you can customize your message, which will then be sent to all of your specific representatives in Congress automatically.

I'm not going to claim to be an expert on the topic, but my understanding is that this would eliminate all other taxes from the federal government.....everything. Businesses won't have to spend a ton of money figuring out how to avoid taxes or spending money willy nilly to avoid capital gains. No more estate taxes. No more taxes that are built into the costs of American made products, making it hard for them to compete with foreign companies.

I really have trouble seeing a downside. Which means it probably will never happen. But if masses of people will get behind this, it could have a chance.
Oh, and I almost forgot, no government induced suppression of the ability of the average guy to get ahead. I'm a straight commission sales person, and when I have a big month, taxes absolutely nail my check to the wall. It's almost better to have a good month, than a great month. There's very little difference right now in the actual dollars that get to me.