How does the FairTax impact the middle class?

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[Diskatop]

The tricks here are

1) if you EVER ever spend your income, it is taxed at23%i/30%e. Sure, you can put it in savings or "invest" -- and barely keep even with inflation, until you finally spend it and pay the tax

2) IF people spend less than currently, the rate HAS to go UP to be revenue neutral, the rate is based on current (well, 2005 or so) levels of spending. And no, GDP increase will NOT offset this, as that would go mostly to the wealthy (Fair Tax org's research shows this)

[Diskatop]

Here is how it impacts the middleclasses, fromFair Tax org's own research:

"Mid-income category households* would lose because the FairTax would impose a relatively higher tax rate on them."

They are talking about on average. So sure,SOME middleclass people may cut back and live on bread and water, never go to a movie, get rid of their internet access, replace their toilet with an outhouse, however on average the middleclasses wil pay more in in taxes than now.

*AGI between $10,000 and $150,000

[rnrfrogfarm]

Fair Tax is a great plan. Fair Tax allows individuals to benefit from frugal living or pay the price to live large. Enjoy spending or saving, the choice is yours. Sounds good to me!

[Diskatop]

This point is not debateable, as it is in SUPPORTERS' own research:

under the "Fair" Tax aka National Sales Tax-Inclusive aka NASTI, those making from about $15k to $150k a year would pay MOREin federal taxes than they do now, and those making over $150k would pay less than they do now. Do we really want to RAISE THE TAXES of the middle classes so we can LOWER the already very low taxes of the wealthy? This tax is NASTI, and a very bad idea.

[motor5253]

I think the Fair Tax is the way to go. It repeals the 16th amendment and abolishes the IRS. It also taxes the criminal underground economy (black market), who currently do not pay income and payroll taxes. The income tax should still be unconstitutional. It is theft. The Fair Tax allows us to control when we pay taxes.