What is the FairTax legislation?

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[Diskatop]

From BHI/fairtaxorg:"Households in the lowest income band, with an (AGI) of less than $10,000 annually, would benefit because they would receive the prebate that would more than offset any higher cost of purchasing goods.Households in the top income category, with more than $150,000 in annual income, would also gain as they do not have to pay their highest marginal tax rates. Mid-income category households would lose because the Fair Tax would impose a relatively higher tax rate on them."

[halfahuman]

but how is it pro-growth? You say that it is, but to me this looks like it would just be a progressive tax up until your savings matches whatever the prebate is, and then regressive past that point... Which would basically just give the middle class the highest tax rate of any income bracket.

How does shifting the tax burden onto the middle class help the economy?

[halfahuman]

@Maserati7200 I understand the middle class pays a lot in income taxes, but if i'm understanding what he's saying correctly, under the fairtax, assuming it's revenue neutral, the middle class would be paying even more.

But what you're saying is incorrect, consumption does not take a toll on the economy, it's one of the main measures of a healthy economy, an increase in consumption leads to GDP growth, not an increase in savings.

[Maserati7200]

@halfahuman The middle class is already paying a shit load of income taxes. If some people in the middle class decide to save and invest their money instead of spending it all (consumption takes a toll on the economy) then we would have growth and many middle class folk will be paying less in taxes than they were before

[prebenso]

look at who is suggesting this baloney and you find out who is benefiting from it.

It sounds nice and the commercial has a catchy tune but the aftertaste is shitty

[holycanoliotis]

@halfahuman the tax burden is already on the middle class. the Fair tax would shift it off of the middle class and onto everyone who spends, to include poor, middle, rich, under the table workers, illegals, drug dealers. everyone. Also, without corporate tax and payroll tax, business's will be able to lower their prices on goods and services. creating a more competitive market, which produces growth.

[OC8O]

@VerumAdNauseam Actually, the 23% sales tax rate you keep using is disingenuous. The method FairTax proponents use actually puts the tax at 30%. According to Bush's panel on tax reform back in '08, it would need to start at 34% & gradually increase over time. Also, the plan calls for Gov. expenditures to be taxed. Anyone w/ a brain & 5 seconds to think about it could figure out why that's absurd, because you can't tax money from taxes and call it additional tax funds.

[1969was1969]

@VerumAdNauseam

1) Lol-- go look up what that interest on savings is.

2)Even paying 18% is more than 80% of taxpayers do now.

3)The poor have no money to save, lol, and you just countered your own argument of "if you save anything, you pay even less"-- by stating the middleclasses will spend more. Again, at current levels of spending the rate is 23%i/30%e. Any less spending would mean a higher rate, ansd no one is guessing more overall spending would arise, not even supporters site.

[1969was1969]

@VerumAdNauseam Supply and demand set prices. Corporate taxes are an after-effect tax, not a part of prices. Prices are set, items are sold, THEN the company pays taxes on their profits, if there are profits. In reality, corporate taxes are a tax on the stockholders, on the stockholders' "income" from the corp., the profits.

[1969was1969]

@VerumAdNauseam And as I have explained here on Youtube repeatedly, that "income mobility" is falling into poverty-- they call that an increase in "utility(well-being)". For the conclusions in 9 ad 11 to not be correct, the person's income has to go above $150k (not likely, as they admit) or below $10,000. See Table 13, paying attention to years 7-8 and 15-16, and you will understand the "fudging" they are doing to try and make this sow's ear seem like a silk purse.

[VerumAdNauseam]

@1969was1969 No it's not flawed.

1) Savings and investments earn interest.

2) The rebate reduces our effective tax rate. You won't actually pay 23% unless you spend $230k or more.

3) Why would spending be less? The poor will save more, the middle and upper class will spend more.