I found the below discussion at Resist.net titled Better Than Fair tax
claiming this unnamed, unsubstantiated tax system is better than The Fair Tax. I gave my two cents worth. I'm sure others of you can offer more incite than myself. You will need to register to leave a comment.
There is a movement going around commonly referred to as a “Fair Tax”.
I for one do not agree with the Fair tax; as it will require more money from those who can least afford it.
Like our current tax system, it is based upon the amount of money the customer needs to pay, regardless of the item(s).
It is with this in mind, that I would like to offer an alternative solution to our nations taxing problems.
.05¢ .10¢ .15¢
If am item costs less than $1.00 an extra .05¢ is added to the price of the item. If the item cost between $1.00 and $99, the cost of the item would include an additional .10¢. If the price of the item is greater than $100, then an additional.15¢ would be included in the price.
All of these additional funds (tax) would go to the treasury of the state in which it was collected.
Each state in turn, divides the money with the federal government 60/40.
Sixty percent (60%) would go to the state in which it was collected, and forty percent would go to the Federal Government.
The federal government would receive their 40% twice monthly from each state.
This approach would have some definite advantages over our current system, as well as the proposed Fair Tax.
Not only will it lower the cost at the checkout line, it will also make it easier for the consumer to keep track of what their total amount will be while shopping, thereby eliminating any additional tax “surprises”, when the total amount is rung up.
Lower tax amounts leads to more purchasing by consumers. As the number of items purchased increases, so does the demand for workers.
The greater the number of people working, the greater the amount of items purchased by the consumers; this in turn leads to greater “tax” revenue being generated for both the state and the federal government.
This approach would also eliminate any need for the IRS, as there would no longer be a need for income tax forms.