Replace All Federal Taxes on Income with the Fair Tax Act , HR 25 and S 122

Pretty Good 'FairTax vs flat tax' article in Real Clear Politics

http://www.realclearmarkets.com/articles/2009/05/the_flat_tax_vs_th...

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Replies to This Discussion

Permalink Reply by micheleking on May 21, 2009 at 12:33pm

What the name of flat tax plan SteveForbes touts?

Is this the same flat tx that will:
1) "assuming no w/hold, but instead paid mo/qtrly?"
2) "include a ceiling rate" would "go to zero." What's that mean?

Is "shumpeterian creative destruction" just a fancy way of saying Walmart will run mom&pop's out of business?

comment #11 mentioned "IRC." What's that mean?

Under FairTax, wouldn't lobbying disappear from the collection side and just move over to the spend side? (Not a bad thing at least 1/2 go away.)

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Permalink Reply by Jim Tomasik on May 21, 2009 at 12:41pm

I think Steve Forbes tax plan can be reviewed by reading the second plank of the Communist Mainfesto.

I do not know what 'IRC' might be.

Half of the lobbyists will be wout of work.

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Permalink Reply by Joe McCune on May 22, 2009 at 8:37pm

I believe "IRC" might have been a typo for "IRS".

Lobbying on the spending side already happens, it is called free market advertising.

Any "flat tax" proposal I have seen leaves the IRS intact, along with the social security and medicare taxes. That means there would be nothing to stop the "flat tax" from becoming the bloated fiasco we have today. Look at what has happened since 1986, when they took away many deductions and simplified the tax code.

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Permalink Reply by micheleking on May 26, 2009 at 8:38am

Was in a hurry this a.m. to respond to WSJ article and swipped your "bloated fiasco" line. It just works so well. http://forums.wsj.com/viewtopic.php?t=6051

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Permalink Reply by Joe McCune on May 26, 2009 at 8:23pm

No problem, glad to be of assistance.

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Permalink Reply by Robert Marquis on May 21, 2009 at 1:12pm

lets have a Presidential like debate with Steve Forbes (Flat Tax) and whom ever he wishes to have with him. Congressman Linder (FairTax) and whomever he wishes to have with him. Get whomever and whoever he or she wishes to represent the way they collect taxes now, Have the debate on Saturday night on the Mike Huckabee show, and if need be, take the next hour too. I know that the FairTax will prevale.---------bob

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Permalink Reply by Jim Tomasik on May 21, 2009 at 1:16pm

They will not do it.

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Permalink Reply by Ron Wenrich on May 21, 2009 at 5:52pm

There is no way to abandon the practice of having employers withhold employee taxes. Its a lot easier for the government to keep tabs on a million businesses vs several hundred million taxpayers. Besides, many of those taxpayers would have the money spent before the month is over and the government wouldn't be able to collect the taxes.

Are there supposed to be any deductions in the flat tax? I can't imagine they wouldn't exempt some sort of income, possibly to the poverty level and adjust for family size.

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Permalink Reply by micheleking on May 21, 2009 at 8:19pm

I signed my W4 "exempt" many a time. College kid-o-mine also "exempt" status.

Under FairTax, the gov would be knocked out of that equation. The tax is only at the point of sale. Do you think a store owner would risk loosing his lively hood because you didn't want to pay the tax on a $20 item? FairTax is self-regulating.

Anybody blowing their $ before the end of the month has got a bigger problem than paying their taxes.

Miss Nancy Gatchel read the article too. We were both confused as to what flat tax he was talking about. Could not find one in particular, only a reference to Steve Forbes. Jim illuminated on that point. (Got me learnt.)

I've read a couple of different flat tax proposals and neither one addressed "taxes up to the poverty level" with simplicity as does FairTax. But the biggest difference I noticed was the provision for Medicare and S.Security. 3 huge problems all solved in 1 easy to apply plan.

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Permalink Reply by RC Woodworth on May 23, 2009 at 7:36am

Great article - way better than most anyway.

I wish it said the nrst were also a flat rate tax - just on consumption instead of income.

Also wish it said that the flat income tax would have EE and ER payroll taxes in addition to the income tax. That is frequently omitted.

thanks for posting

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Permalink Reply by Nancy L. Gatchel on May 23, 2009 at 9:54am

Our tax system began with the flat tax. We see where it got us.

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Permalink Reply by micheleking on May 23, 2009 at 10:34am

My engine is slow on the uptake: what is EE & ER? Great point to learn that FairTax is really flat. Hmm...the wheels are turning.

Was trying to save my eyes reading about falt taxes, but today this discussion prompted me to try again. Found "Flat Tax Fiasco" by Douglas Dunn '98 & '06. Looks like an easy read. Plus the "flat vs. fairtax" really is easy as they have a chart for comparing the 2 against what we have now.