Last week, House Republicans announced that they will vote on a bill to abolish the IRS and income taxes. Instead of an income tax, the bill, known as the Fair Tax Act, would create a 23% national sales tax. Although the bill won’t pass the Senate or sustain a presidential veto, some conservatives will continue to push for similar legislation for years to come.
The term “Fair Tax” is a misnomer. This legislation would shift the burden to the most vulnerable taxpayers, people who live paycheck-to-paycheck and cannot afford more hardships. In addition, a Fair Tax would lead to lower tax revenues, meaning substantial cuts to crucial services that affect millions of Americans.
The Fair Tax is nothing new. Similar legislation was first introduced in 1999, more than two decades ago. The bill seeks to replace most current federal taxes with a single 23% sales tax.
Like many other Oregonians, I am adamantly opposed to a sales tax. These taxes are regressive, disproportionally affecting those with lower incomes who spend a greater portion on necessary goods. In contrast, wealthier taxpayers tend to pay a lower share and save more. The burden would shift to the most vulnerable Americans. The bill would also create a large deficit since the tax revenue would most likely not be able to cover already existing programs.
The two largest mandatory spending programs, Social Security and Medicare, are funded through a 7.65% payroll tax. The Fair Tax would replace these taxes as well. Although Republicans have talked about cutting Social Security and Medicare spending, the potential electoral backlash would most likely prevent any substantial changes to these programs. This would create a large deficit, requiring further debt to finance government spending and providing less to those already hurt by the Fair Tax.
Well said Kevin, well said. If people want to know how disproportiante that tax would be, take a look at the protections the rich have to being taxes, alas that 23% tax will once again, put the burden on the backs of the working class, the working poor and the indigent, elderly and our disabled Veterans. Take a good look at the charts and graphs of the Tax scam the Republicans are proposing, look at the longitudinal effects.
Anwer me this? In what Universe do Republicans think voters are actual imbeciles?
I find it fascinating that a certain number of Americans can have such an aversion for the word "taxes" that they would propose burning down an entire system that supports our American way of life just so they can claim they slayed a beast.
Give us more of that sledge hammer mentality -- beat those walls down and just complain that it was someone else who let the roof cave in, correct?
I agree that we need a VERY flat Income tax, with 1 tax rate, NO personal Exemptions/Deductions, and NO Refundable Tax Credits. Everyone pays from 1st dollar of income on 1 page in 1 hour.
We would still need an IRS, but it would be tamed.
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Well said Kevin, well said. If people want to know how disproportiante that tax would be, take a look at the protections the rich have to being taxes, alas that 23% tax will once again, put the burden on the backs of the working class, the working poor and the indigent, elderly and our disabled Veterans. Take a good look at the charts and graphs of the Tax scam the Republicans are proposing, look at the longitudinal effects.
Anwer me this? In what Universe do Republicans think voters are actual imbeciles?
I find it fascinating that a certain number of Americans can have such an aversion for the word "taxes" that they would propose burning down an entire system that supports our American way of life just so they can claim they slayed a beast.
Give us more of that sledge hammer mentality -- beat those walls down and just complain that it was someone else who let the roof cave in, correct?
23% sales tax.
Terrible idea!
We need a flat tax and get rid of the IRS.
I agree that we need a VERY flat Income tax, with 1 tax rate, NO personal Exemptions/Deductions, and NO Refundable Tax Credits. Everyone pays from 1st dollar of income on 1 page in 1 hour.
We would still need an IRS, but it would be tamed.
Agree! Everyone has skin in the game. No more standing on the sidelines with your hand out yelling to "tax the rich."
[thumbup]
The FAIRtax is a SCAM. For a summary of its many fatal flaws, see
https://sceldridge.wixsite.com/sceldridge/letter-to-the-editor
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