tag:blogger.com,1999:blog-8204289.post8330386739212233383..comments2024-03-28T12:12:45.202-05:00Comments on Independent Country: Does the Fair Tax Encourage Higher Taxes and Big Government?Anonymoushttp://www.blogger.com/profile/11620822221586726516noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8204289.post-60945191239784068202008-11-10T12:26:00.000-06:002008-11-10T12:26:00.000-06:00If you earn and spend $1000 a month, you'll be pay...If you earn and spend $1000 a month, you'll be paying $230 in fair tax. That means you'd only be buying $770 worth of goods. If I then start mailing you rebate checks for $230 on the first of each month, I'm not raising your income to $1230 rather I'm raising it to $1000- same as you would have if you weren't paying the tax.<BR/><BR/>The only reason anyone would think that the poor would get screwed directly by a cut in the tax/rebate rate is if they're making the mistake of counting the rebate as extra income.<BR/><BR/>Cutting the tax rate only increases incomes for retailers. If retailers decide not to immediately cut prices by the same percentage, they would screw the poor, not the fair tax.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8204289.post-31035575869475599362008-11-09T22:49:00.000-06:002008-11-09T22:49:00.000-06:00I think zod and Anonymous covered the concern of t...I think zod and Anonymous covered the concern of the writer. The website for the fairtax.org is always being updated please go there and read up on it. The fair tax will bring 10 trillon dollors to the us and that is a rescue plan the fed cannot barrow or print. <BR/>Just to comment on the post from James Leroy Wilson. Compation will bring lower prices that you can count on. And if you see a business that dosn't call them out open and be there direct compation. Its not that hard to do when theres no payroll taxes to do for your employes. If you pay $15 an hour thats what there check will be for NO withholdings under the fairtax!!!!! :)<BR/>nacdanielAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8204289.post-16098987892957819142008-08-04T22:04:00.000-05:002008-08-04T22:04:00.000-05:00Also note, if the tax rate is reduced and prices r...Also note, if the tax rate is reduced and prices remain constant, it only means pre-tax prices have increased by the same percentage. At 23%, $77 out of $100 pays for the goods and $23 pays for the tax. At 20%, $80 out of $100 pays for the goods and $20 pays for the tax. The total cost for consumers remains the same. $100 buys the same amount of goods and services regardless of what the tax rate is. The only difference is how much goes to the retailer vs the government.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8204289.post-85378876845375286752008-08-04T19:54:00.000-05:002008-08-04T19:54:00.000-05:00This comment has been removed by the author.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8204289.post-83123050313560356352008-08-04T17:43:00.000-05:002008-08-04T17:43:00.000-05:00For consumers to benefit from tax rate cuts, retai...For consumers to benefit from tax rate cuts, retail prices would have to fall accordingly with a drop in the tax. That is a dubious proposition. If the people were willing to pay $100 for an item which includes a 23% tax, is unlikely the price will fall if the tax rate falls to 22% or lower; the price indicates the level the people are willing to pay regardless of tax. Sellers would just keep the difference as profit.<BR/><BR/>Prices will only go down if people, having lower amounts in their prebate checks, refuse to pay $100 for the item anymore. But that adjustment will take time. If prices do not fall on necessities, the poor would be screwed by Fair Tax cuts.Anonymoushttps://www.blogger.com/profile/11620822221586726516noreply@blogger.comtag:blogger.com,1999:blog-8204289.post-1245574382327881772008-08-04T09:34:00.000-05:002008-08-04T09:34:00.000-05:00First, nobody would loose anything from a drop in ...First, nobody would loose anything from a drop in the Fair tax rate/prebate amount because the difference in the prebate would be exactly the same as what we would save at the register- for spending at the poverty level. If you spend more than the poverty level, you would save more from a tax cut than the difference in the prebate.<BR/><BR/>Second, the prebate is NOT a government subsidy or a walfare check. It's a tax refund. The less taxes we pay at the register, the less the government needs to refund back to us.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8204289.post-73907790593853385662008-08-03T11:17:00.000-05:002008-08-03T11:17:00.000-05:00This is quite a stretch. If the govenment downsize...This is quite a stretch. If the govenment downsizes it will need less revenue, therefore the tax rate could fall. This would offset any decrease in the prebate. In any case the benefits of the FairTax far out weigh our current system. The FairTax by no means brings about Utopia. I for one want to become one of the wealthy. The FairTax will help by all standards. That's what our country is all about.Anonymousnoreply@blogger.com