Cut the taxes of rich conservatives, and raise them on all liberals. Problem solved!

[WiiBox3]

supermario128 said:

WiiBox3 said:
^Actually, I think the rich might save a lot more money with that system, since most of the rich buy their cars/houses/jets through a company.

No, the more money you make the more you will spend and the more taxes you will pay. They are not exempt just because they are part of a company because whoever buys the product will have to pay taxes. There is no way around that.

 

Mr Khan said:

Would food and clothing be exempt from this? Otherwise this could be a horribly cruel tax on the poor.

No, nothing is exempt from being taxed. If they did this to one product it would be an unfair advantage and lobbyist would start trying to get their products tax free as well. Although they say 23% sales tax rate you have to make a certain amount of money before you actually pay that rate.

"The FairTax replaces the federal income and payroll tax system with a national retail sales tax plus a prebate which makes spending up to the poverty level tax free. This means that those living at the poverty level will pay a FairTax rate of zero percent. A person spending twice the poverty level would pay a spending tax rate of 11.5 percent; a person spending three times the poverty level would pay an effective rate of 17.3 percent, and so on."

You can read more about it here: http://www.fairtax.org/site/PageServer

As with the product themselves, I sure they will find a way to write off the taxes as well.