| Eomund said: Further, this is a tax hike on the middle class. If you make less than $15,000 you win. If you make more than $200,000 you win, because you actually save more and spend less of your income. This is a nice populist proposal which sounds good but is economically challenged. It only works on someone who has not read about the problems. I make more than $15,000 and less than $100,000, yet I know about all the "problems" and still support it very strongly. I doubt there will be a serious if any tax hike on the "middle class." If there is I think their income increases would offset it. Who is to say that the Middle class can't save more as well? They could invest a small amount and get dividends every month to supplement their income as well. This argument fails to convince me that the "FairTax is nonsense." The FairTax removes power from the government and puts it squarely back in the hands of the people. The congress can't jack with the rate like they can with an income tax. It is one of the best ideas in a very long time. |
Assuming the government collects the same amount of tax and the groups of under 15k and above 200k will be better off, the only outcome is that the middleclass will pay more taxes. It is the only way the numbers add up, someone has to pay for the decrease of tax payed by other groups.
Now about the last part, what will prevent congress to increase the sales tax rate? I really don't see a difference with the income tax here.
But on a different note, doesn't the US have some real issues to resolve instead of arguing about a tax reform?
