Quote:
Originally Posted by Janie123
the “Fair Tax” is a national sales tax on steroids and has been bouncing around congress for about 10 years now. It replaces ALL taxes the federal government takes in and includes a rebate to all house holds up to the poverty level for the tax they pay on good and services. This tax also replaces payroll taxes which anyone that works a legitimate job pays including the employer. Even the federal gas tax goes away with the fair tax. For retirees, all capital gain taxes goes away as well as RMDs. I’ve read a few books on it and can’t find a whole lot of cons and lots of pros… including abolishing the IRS.
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This "fair tax" isn't so fair. The wealthy who make a lot of income put most of their income into investments and the bank. Therefore they would only pay tax on what they "spent" and pay no tax on their investments. This is a scheme to help the rich!
As to the gas tax - this is going to be a problem in the future. With the push towards electric vehicles, hybrids and just more fuel efficient vehicles gas consumption is going to go way down and taxes along with it. Toll roads would partially work to alleviate the problem - so roads like I-95 would need to be converted to a toll road.
All roads supported with the gas taxes would have to be converted - not very practical!
And if payroll taxes go away where are the funds going to come from for medicare and social security?