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mmmmmmmmmmm, Fair-Tax debate, I love this.
As the National sales tax is described in the Fair-Tax book by Neal Boortz I love it. It abolishes all federal taxes and replaces them with a flat 23% internal, which is about 30% external, tax on all new goods. By internal and external I mean that if the tax is calculated as part of the total price of the good then its 23%, if the tax is calculated as being added to the price of the good, its 30%. Its the same amount, just calculated different ways.
Every family, based on size, is given a monthly check by the government to cover the tax on "basic" expenses. The check is supposed to be the amount of tax they would pay on food/housing and basic amenities.
This check goes to every family.
Everything is taxed.
The reason for this is the theory that if you make a loophole for one group of people, or some goods, someone else will try to make another loophole for themselves. We need a tax system that has no loopholes for people to get through so that everyone pays taxes.
If the poor only buy basic amenities, the taxes are covered by the check. So they pay almost no taxes.
The rich buy more new items and as such are taxed.
Some might say that the rich shouldn’t get the check from the government, but I really believe that regardless of your income you shouldn’t be paying taxes on the “basic” necessities. The check is based on family size, and rich people will eat better than poor simply because they are rich, so they will spend more money on food and pay taxes on the amount they eat that is greater than the amount covered by the monthly check.
As might be assumed I’ve studied this quite a bit. ^_^
If something isn’t clear just tell me and I’ll try and clarify it.
Just a note - The fair-tax as described by Boortz in his book is the only one I’ve studied so it’s the only one I actually feel qualified to talk about.
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