Consequences of the Fair Tax

This video focuses on the unintended consequesnces of the popular Fair Tax. We examine how a consumption tax works and describe the risks attached. This is part of the Political Common Sense for America video series.

Category:

News & Politics

Tags:

• brianboeheim
• Brian Boeheim
• political common sense
• tax reform
• Fair Tax
• Flat Tax
• Value added tax
• sales tax
• Nancy Pelosi
• consumption tax
• use tax
• The Franklin Party

[Pinion512]

You said people shop online to avoid taxes and I disagree with your assessment. I believe people shop online to avoid the middleman (retailers). I think it has very little to do with having to pay state and local taxes. The reason I say this is simply because when people price a widget at their local BestBuy it has a sticker price of (say) $30. That same item can be had online for about $20 or less. Taxes don't come into anybodies mind until it's check out time (in most cases).

[joebeautifulitstrue]

Texas opperates off of a sales tax and it works out pretty well



[brianboeheim]

@HumbleWillis So you collect $4600 from how many people, so you can send out a welfare check to of $4600 to how many people that didn't spend real money?? Almost 1/2 the population makes no money or is subsidized with Federal State money. They all get a bonus welfare check of $4600. that is a stroke of genius. Why don't you just start Carter's free cheese lines again. You really like the idea of a welfare state paid by the middle class. They will be most hurt by this tax.

[brianboeheim]

@HumbleWillis You're assuming that the product is made in the U.S. and there will be a product cost savings that will be passed on to the consumer. How about Bananas? They aren't from this country. they will be 29% more than they are now. 23% inclusive = 29% tax. I will get 7% more in my paycheck, because I don't pay federal or state income tax...I'm too poor. So, how am I doing better? The current system sucks, we agree, but a flat tax would create the same result without the pitfalls.

[brianboeheim]

@HumbleWillis Have you really don the math??? Are you OK with a person making $1 million a year in income but being taxed on only $250,000 because that's what it takes for him e to live high off the hog. Especially, because he has figured out how to buy barely used good and avoid a bunch of tax. Then you compare that to someone making $40,000 and spending every cent to survive and being taxed on 100% of there work effort. Have you really done the math?

[brianboeheim]

Respond to this video...Have you really don the math??? Are you OK with a person making $1 million a year in income but being taxed on only $250,000 because that's what it takes for him e to live high off the hog. Especially, because he has figured out how to buy barely used good and avoid a bunch of tax. Then you compare that to someone making $40,000 and spending every cent to survive and being taxed on 100% of there work effort. Have you really done the math?

[brianboeheim]

@HumbleWillis Who's going to regulate all of this if you get rid of the IRS? How are you going to keep the Black Market from growing like a weed. We can't keep day laborers and waitresses from cheating on tips, how are we going to insure that new goods aren't being sold as used? How are you going to tax services? Is a lawyer or a doctor selling a product? If they get taxed on the service, then does the carpenter get taxed on the service? If not, then all products can be part of a service.

[brianboeheim]

@HumbleWillis You sound like a politician..."the math works out fine"...how about using real numbers. If you take the U.S. retail revenue number and back out the used sales...your 23% tax, or even 29%, doesn't come close to the revenue required. The way they get around this is by including gov't spending, but that's circular money. It's like taxing gov't workers...what's the point? How are the people at the poverty level going to survive until the end of year check?

[HumbleWillis]

I've taken the time and done the math myself, comparing the current IRS system with the Fair Tax. Those near or under the poverty line will be essentially unaffected by the Fair Tax, so they have nothing to lose.

However, those in the middle class with have a lot to gain by moving to the Fair Tax. Middle Class homes will have 10 - 13% MORE buying power under the Fair Tax system. I wish replies weren't limited in characters, or I'd be able to post a comprehensive breakdown for you.

[HumbleWillis]

@brianboeheim And because prices are cut, your buying power actually increases. Yes, the tax is 23%, but it will be 23% of a smaller cost. I actually worked out the math on this. Making $100 per week, and purchasing products in increasing cost from $5 to $75, running the numbers once for Fair Tax, and once under the current IRS system. In all cases you have more purchasing power under the Fair Tax. Making the same $100, you can buy more under the Fair Tax.