varrussword wrote:
Check out the Fair Tax plan...
Varus
How the taxes are collected is secondary - either *more* need to be collected, or spending needs to be cut - or we are going to dump an insane ammount of debt onto our children.
You're not referring to this are you? http://www.fairtax.org/
fairtax.org_FAQ wrote:
What about border issues? It is unlikely that “shopping across the border†in Canada or Mexico will result in any cost savings to the consumer. Remember, the FairTax is revenue neutral and therefore price neutral. This means the final cost of retail goods and services after the FairTax remains very close to the same levels found in the marketplace today...
In general, it would be great. However, if I can walk across the boarder and walk back with my new laptop, or my wife's wedding ring, and avoid the 23% US federal tax and the 8% California state tax, I'm not sure I wouldn't do it.
And with the internet, I'm not sure how we'd prevent people from getting a PO box in Canada or Mexico and ordering things to be delivered there and shipped (perhaps even by courier) to their doors.
Of course, these problems may well pale compared to the income tax issues we have *right now*.
According to the website, "Under the FairTax, all homeowners make their entire house payment with pre-tax dollars."
This preserves the only point I brought up earlier even remotely concerning fairness!
Of course, rent is not going to be taxed either, or is it? There is no mention in the FAQ.
Lastly, I seriously doubt 23% will do it. From the FAQ corporations pay *nothing* - it is pretty darn easy to decide one is a corporation and buy oneself a company car...further, I'd be paying even less then I do now - and I would have paid far less when I was making less money. If we all pay less it can't work. We're already generating huge defecits as is.