P.S. I cannot figure out why, but the chart wants to be REALLY far down the page. I can't get rid of the extra spaces. If someone who knows programming sees this and knows how to fix it, by all means, reply and tell me how. Otherwise, just scroll down and check it out. Tell me of any concerns you think should be on there and if you agree/disagree with my risk/concern level.
| Concern | FairTax | Flat Tax | VAT | Current | VAT w/Prebate |
|---|---|---|---|---|---|
| Hurts the Poor | 2 | 7 | 9 | 4 | 3 |
| Evasion | 2 | 6 | 3 | 7 | 3 |
| Revenue Neutral | 2 | 3 | 2 | 3 | 3 |
| Fair | 1 | 3 | 4 | 7 | 3 |
| Transparent | 1 | 2 | 7 | 9 | 7 |
| Price Increase | 6 | 4 | 7 | 2 | 6 |
| Higher than Propsed/Current Tax Rate | 3 | 3 | 4 | 6 | 4 |
| Hurt Business | 2 | 4 | 3 | 7.5 | 2.5 |
| Black Market Causing Less-than-Expected Revenue | 2 | 4 | 3 | 7.5 | 2.5 |
| Fix Social Security & Welfare | 3 | 5 | 3.5 | 6.75 | 3.5 |
Tell me of any concerns you think should be on there and if you agree/disagree with my risk/concern level.
2 comments:
Fair Tax isn't exactly fair. If the average business pays taxes, and we shift all that burden to the consumer, then the consumer will be hit with the huge burden of supporting the government revenue. Also, what happens when most of the millionaries aren't going to spend 60% of their incomes, and just reinvest this money into stock or bonds or other investments. The GDP, I believe, also represents a portion of the business sales in it too, and with no tax on these purchases, the tax would have to be much higher for the average working class consumer.
Anonymous,
Corporations will no longer be paying taxes, since the FairTax will replace it. The cost of compliance is very high. Withholding will disappear, also. With these expenses gone, the cost of business will go down, making the price of goods and services smaller. That decrease will be balanced by the FairTax, making prices about the same. There will be no increased burden on the consumer.
The good thing about the FairTax is that it has a much larger tax base. It includes the underground economy, as well as many other criminal elements. The size of this underground economy has been estimated to be between $1 trillion and $2 trillion.
The AFFT believes that things should only be taxed once, which makes it much simpler. There are other types of taxes that are spread all the way through the process, which means that taxes will be taxed. With the FairTax, that will not happen.
They devised what they call a "prebate" which is given to households (those who apply) comprised of American citizens, so necessities are not taxed, and so the FairTax is progressive instead of regressive.
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