As someone who considers himself a conservative (even if nobody else does), I generally like to concentrate on social issues, the issues that I tend to disagree with other "conservatives" on. There are two main reasons for this
1. I like to argue. If I concentrated on taxes and spending, I couldn't highlight the differences between myself and the Republican party, and have good-spirited debates with other conservatives on the issues. So I agree with a lot of Democrats on a lot of social issues, that's okay with me. Be sure, they'll have their chance to disagree with me, and now might be a good chance.
2. After much thought and some reservations, I've decided to support the Fair Tax. To me, the Fair Tax would solve most of the problems associated with today's complicated tax code, and would give the power back to the taxpayer.
I'd like to discuss the Fair Tax with you. That being said, I'm not going into too much detail, because I don't want to bore you (its figures and taxes, fun!!). I do, however, have resources. ---
Basically, the Fair Tax is an embedded 23% sales tax on retail purchases. This has nothing to do with either state sales taxes, or Social Security taxes. These taxes won't change. But everything you buy (at the retail level) would contain a 23% embedded sales tax, which would replace the income tax.
Q: How did they come up with 23%
A: This is the average income tax embedded into each item you buy. For instance, if you buy a TV for $100, 23% of that went to pay income taxes for the people who made it, shipped it, and sold it
Also, each family would receive what is called a "prebate" from the government each month. This "prebate" would equal the amount of taxes that someone would spend for the basic necessities. If you only buy what you have to, you don't pay taxes (this is where the "prebate" kicks in). If you buy a luxury item, or more than is necessary to live on, you pay a tax on those items.
Q: Will this mean less money will be paid to the government
A: NO, this is a revenue-Neutral tax. The Government should take in the same amount of money. It is also not a tax cut. It is just a different (and simpler) way of collecting taxes.
The Fair Tax would eliminate the need for April 15th (not the day, but the tax deadline) for individuals. It would put business in charge of tax record-keeping and writing the check to the government each quarter. The IRS probably couldn't be eliminated (there would still be a need for some oversight, but not on the level we have today), but it would be reduced dramatically.
Also, that extra 23% that you'd pay for the item would eventually decrease, (the businesses don't have to pay the income tax, anymore and competition would reduce the price). A few years ago, an airline tax expired, and congress forgot to re-instate it. Before the end of the next day, almost all of the airlines had reduced their ticket price by about the same amount as that tax. It only took one company, trying to get a few extra customers, to get the ball started.
Q: Will I still be able to deduct things like student loan interest, and business expenses?
A: NO. You would not pay income taxes, therefore there would be no reason to deduct these items.
Q: What about my retirement, will it be affected?
A: YES. You won't have to pay income taxes on that money, or interest made from that money.
Q: The-G-Blog, you make it sound so simple, is it?
A: NO. I don't have time to go into really specific details. I've linked the sites and books below to help you gather information, and I'll be glad (and I hope some of my other readers that have more knowledge than I do) try to answer any specific questions you have in the comments, but ultimately, you are going to have to really look at the proposal to see what you think.
The Fair Tax bill has been re-introduced in this Congress (Senate S 1025, and House H25). It has some bi-partisan support, but it needs more. Rep Charlie Rangel (D NY) has supposedly agreed to really look at this bill, and he is the Chairman of the Ways and Means Committee, so maybe we can at least have a debate.
Remember, lobbyists don't like the Fair Tax because it takes deduction, and special provision powers away from them in the tax code. Many in congress don't like it because it hampers their ability to spend our money on pork for their district. That should be reason enough to give this bill a chance!!
As always, thanks for the comments. I'm sure I missed something important, so if you have any questions or comments, don't hesitate to post.
1. I like to argue. If I concentrated on taxes and spending, I couldn't highlight the differences between myself and the Republican party, and have good-spirited debates with other conservatives on the issues. So I agree with a lot of Democrats on a lot of social issues, that's okay with me. Be sure, they'll have their chance to disagree with me, and now might be a good chance.
2. After much thought and some reservations, I've decided to support the Fair Tax. To me, the Fair Tax would solve most of the problems associated with today's complicated tax code, and would give the power back to the taxpayer.
I'd like to discuss the Fair Tax with you. That being said, I'm not going into too much detail, because I don't want to bore you (its figures and taxes, fun!!). I do, however, have resources. ---
Basically, the Fair Tax is an embedded 23% sales tax on retail purchases. This has nothing to do with either state sales taxes, or Social Security taxes. These taxes won't change. But everything you buy (at the retail level) would contain a 23% embedded sales tax, which would replace the income tax.
Q: How did they come up with 23%
A: This is the average income tax embedded into each item you buy. For instance, if you buy a TV for $100, 23% of that went to pay income taxes for the people who made it, shipped it, and sold it
Also, each family would receive what is called a "prebate" from the government each month. This "prebate" would equal the amount of taxes that someone would spend for the basic necessities. If you only buy what you have to, you don't pay taxes (this is where the "prebate" kicks in). If you buy a luxury item, or more than is necessary to live on, you pay a tax on those items.
Q: Will this mean less money will be paid to the government
A: NO, this is a revenue-Neutral tax. The Government should take in the same amount of money. It is also not a tax cut. It is just a different (and simpler) way of collecting taxes.
The Fair Tax would eliminate the need for April 15th (not the day, but the tax deadline) for individuals. It would put business in charge of tax record-keeping and writing the check to the government each quarter. The IRS probably couldn't be eliminated (there would still be a need for some oversight, but not on the level we have today), but it would be reduced dramatically.
Also, that extra 23% that you'd pay for the item would eventually decrease, (the businesses don't have to pay the income tax, anymore and competition would reduce the price). A few years ago, an airline tax expired, and congress forgot to re-instate it. Before the end of the next day, almost all of the airlines had reduced their ticket price by about the same amount as that tax. It only took one company, trying to get a few extra customers, to get the ball started.
Q: Will I still be able to deduct things like student loan interest, and business expenses?
A: NO. You would not pay income taxes, therefore there would be no reason to deduct these items.
Q: What about my retirement, will it be affected?
A: YES. You won't have to pay income taxes on that money, or interest made from that money.
Q: The-G-Blog, you make it sound so simple, is it?
A: NO. I don't have time to go into really specific details. I've linked the sites and books below to help you gather information, and I'll be glad (and I hope some of my other readers that have more knowledge than I do) try to answer any specific questions you have in the comments, but ultimately, you are going to have to really look at the proposal to see what you think.
The Fair Tax bill has been re-introduced in this Congress (Senate S 1025, and House H25). It has some bi-partisan support, but it needs more. Rep Charlie Rangel (D NY) has supposedly agreed to really look at this bill, and he is the Chairman of the Ways and Means Committee, so maybe we can at least have a debate.
Remember, lobbyists don't like the Fair Tax because it takes deduction, and special provision powers away from them in the tax code. Many in congress don't like it because it hampers their ability to spend our money on pork for their district. That should be reason enough to give this bill a chance!!
As always, thanks for the comments. I'm sure I missed something important, so if you have any questions or comments, don't hesitate to post.
