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Originally Posted by Jack's Smirking Revenge
Darkness is correct when he says it would be bad for the middle class. It's an obviously regressive tax: the wealthy spend a smaller percentage of their income than the middle and lower classes do, so they'd end up paying a smaller percentage of their income in taxes. He's also correct on the fair tax's effect on spending, which would hurt the economy.
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But if you exclude food from the tax, it makes it a little more even. But maybe we also tax the purchase of stock/bonds and many investment instruments as well. So aside from a cash account or IRA, you would pay taxes to invest.
The problem with our economy IS spending. It's great to have a consumer drivien economy if ppl at least save a little. The beauty of the sales tax is that it encourages ppl to spend less. That is a GOOD thing. If you enjoy an economy that lives on borrowing over our heads, then we're screwed anyway.
I am starting to come around on the sales tax.
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There would be more adjustments made for other income levels, and industries will lobby like crazy to have their products and services exempted. Politicians won't deprive themselves of opportunities to grant those favors for voters and donors.
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Well that happens now. Hopefully, in an attempt to keep it simple congress would make the effort to avoid many exemptions.
I think this is great to talk about. But the issue is NOT taxes. The issue is SPENDING. The only thing I like about this salles tax is that it changes ppl's minds on spending. Otherwise we haven't addressed the real problem.
Our gov't is so corrupt right now it boggles my mind. Ugh.