Youtube debate

[Eomund]

@Cheeseburger's attack on the FairTax

The problem is implementing the FairTax is the 16th amendment, and unless that gets repealed then yes, taxing could continue under both avenues. BUT if you repeal the 16th Amendment then you can safely implement the FairTax. It simply is the biggest and best idea in politics since sliced bread.

Would you rather have a transparent tax like the FairTax or would you rather to continue to suffer under the current tax law.

Ok look at it this way. I make $400 a week. But under current law I pay about 22% in taxes before I ever get that money. Not only am I paying taxes for me working, but my employer is also paying taxes for me too. They match the Social Security tax up to X% (I am drawing a blank as to what the actual number is right now). They also have costs of complying with the current tax code. The total cost of the current tax code to myself: $400 - 22% = $312 I take home weekly. Now for the potential cost to myself: Employer payroll tax + Tax Compliance costs = money that could go to me in the form of a raise. So monthly i have ($312 * 4) = $1248.
I would get some money back at the end of the year, but I should not have paid those taxes to begin with. They give me that money back when I could have been saving that money with interest. So they just cost me even more...

Now the FairTax's turn. I make $400 a week. I take home all $400. I also get a monthly check of about $200 from the Prebate check from the government. The Prebate is the amount of taxes a person making the poverty level would pay under the FairTax. Now you also take away the cost to my Employer: the matching Social Security tax up to X%, and the cost of Compliance under the current tax code, plus other business taxes.
(As a side note, Businesses never pay taxes, they pass them along to the consumer)
Now the total cost of the FairTax to myself: $400 - 0%= $400 I take home weekly. Now add the Monthly Prebate check ($400 * 4 weeks) + $200 = $1800 monthly.
$1800 monthly + potential raises = Even more money for me! Yay!

Now I would be still paying taxes, but only when I purchased something. If I spent only up to the poverty level I would not really pay taxes because of the Prebate check. The FairTax replaces all income taxes with a national retail sales tax of 23%. BUT because of the reduced cost to companies for employing people, and for compliance to the current tax code, PLUS various other business taxes, the cost of any item you buy would not go up. So no worries there.

Also by implementing the FairTax you would end the underground economy of prostitutes, drug-dealers, and other various nefarious dealings of money under-the-radar. All those people would then pay tax anytime they bought something. (Again up to the poverty level they wouldn't because of the Prebate).

The FairTax would make America the Tax Haven of the world bringing in more new jobs and more new companies than have existed in America. It would bring an economic golden age for America.

Also by implementing the FairTax, you would end the behind the scenes manipulation of the current tax code. While the FairTax would be able to be adjusted, it would be much more apparent and obvious to EVERYONE, making a tax hike near impossible.

These are just the responses that I can come up with off the top of my head as to why we should implement the FairTax.