What is your standard for a fair tax?

Elbert Donatelli: Everybody pays the same percentage ,with no exceptions, Including all stores, businesses, corp.

Mitsuko Manne: (are you asking about the FairTax proposal or the concept of taxation? anyways, I'm not American so I don't know much about the former...)This sort of situation is where some basic knowledge of economics would do everyone a great help.Tax isn't really "fair" for the market and it never will be, as far as mathematics and normative economics (hard numbers) is concerned: taxes always create deadweight losses and therefore inefficiency. To clarify, when a government imposes tax, the price of goods is artificially increased - consumers pay more for fewer number of products. Furthermore, income tax decreases our purchasing power.However, there are many justifications for taxation. For one, TAXATION IS A WAY OF SPREADING WEALTH AND CREATING FAIRNESS (e.g. progressive taxation - the wealthier you are, the higher your tax rate). In a capitalist sys! tem (and this is my personal view), it's only natural that much of the wealth falls on the hands of few gifted individuals. Needless to say, the ones that are less able to generate good income suffer greatly from this inequality. Therefore, it's important for the government to step in and rectify, to an extent, this disparity between the wealthy and the poor.Another popular and widely-accepted view on taxation is that TAXES ARE USED FOR THE GREATER GOOD. Some may argue that politicians are corrupt and will therefore use our tax dollars for their own interests, but that's something that we must solve case-by-case. We mustn't think that tax dollars simply disappear into thin air when we pay taxes. Taxes are there to empower the government, that we elect, to help everyone out.In the end, the consensus in the academic community is that taxation is necessary and beneficial to society. After all, without taxes, the governments would not have any money to use.If I'm to give you my! personal opinion, a fair tax is one that's used for the inter! est of everyone....Show more

Nancy Mansell: Fair tax = Tax the poor, give the rich a free ride.

Asley Quickle: I strongly support the national FairTax plan (HR25). I have supported it for more than ten years.The claim that it benefits the so called rich is the result of a mislead few who exhibit their wealth envy but not the ability to become rich. The FairTax is calculated as an inclusive 23% tax on all NEW goods and services. Used items are not taxed under the plan. There is a built in "prebate" where each household in the country gets a payment equal to the amount of taxes on the spending up the the federal poverty level. That means that no one pays taxes on the things that are needed in life but beyond that taxes are paid. The rich will pay much more in taxes than those who are of lower income.There are many other benefits too such as there are no reports to file or records to keep, There are no deductions from your paycheck ( unless you ask for them).Witho! ut an IRS there can be no IRS abuses, can there? There are many more than that, and they benefit everybody....Show more

Cordia Fivecoat: The problem is that most folks believe a "fair" tax is one where I pay nothing and you pay a lot so that the government will give me a bunch of stuff.

Mahalia Brindle: Right. Tell the single mom of 3 kids, working 2 jobs, that EIC will be gone. I'm sure she'll think that's fair. The "fair tax" is great for the wealthy, real bad for the working poor.There are so many problems with the "fair tax" proposal they're impossible to even list all of them. For some, search for earlier "fair tax" questions on this board.

Nelly Kikuchi: There's nothing "fair" about the so-called and grossly misnamed "Fair Tax," an extremely high (30%) sales tax, on top of state sales taxes than range upwards of 10% in some parts of the country already.A "fair" tax is a tax that the taxpayer can actually AFFORD to pay. The "Fair Tax" is a windfa! ll for the wealthy since they tend to amass wealth, not spend it all. ! The poor and middle class are taken to the cleaners by the "Fair Tax."A single parent with 2 kids and a crap $8.50 an hour job would LOSE nearly $5,000 in annual buying power under the so-called "Fair Tax."This legislation has languished in Ways and Means each Congressional session since around 1997 when it was first introduced for good reason. It's a TERRIBLE piece of legislation. Even its proponents and sponsors don't want it to be sent to the floor of the House for debate or a vote as it would die almost immediately. It's ONLY purpose is political -- to rile up the uneducated and as an excuse for its proponents to say to their constituents, "I'm trying to fix things, but nobody will listen!"Don't be suckered in by the misstatements, generalizations, and outright lies of the proponents of the "Fair Tax." It's a favorite ploy of the WEALTHY since they would make out like bandits. But when you lessen the tax burden of one group, you have to pick it up elsewhere. Guess! where that would be? If you said, "The poor and middle class," then you are correct.A "flat" tax is no better than the "Fair Tax." A flat tax would have to be assessed at 25% of all income without any deductions, exemptions, or credits to raise the same revenue as the current progressive tax. Anyone who makes less than about $265,000 per year pays a lower net income tax rate than 25%, so only those whose incomes are higher than that would benefit from such a tax. (For married couples filing jointly, the income rises to around $375,000 before a net rate of 25% is hit.)That single mom with 2 kids and that crap $8.50 an hour McJob would lose over $9,000 per year under a flat 25% tax once you take away the EIC. She and her kids would be on the streets in no time. A family of four with a $44,000 annual income would lose over $11,000 per year in buying power with a 25% flat tax. That would drop them from "getting by OK" to right around the poverty level overnight.Anyone w! ho calls that "fair" is totally clueless to the realities of the world,! or is utterly heartless.Proponents of either the "Fair Tax" or a "Flat Tax" fall into one of two groups:a) Wealthy individuals with their own self-serving agenda.b) The unwashed masses suckered in by the lies of group 'a' above....Show more