[P No R, Just P] Fair Tax?

I've never understood why people make that assumption.  There'd have to be a huge administrative agency to deal with all the prebates, and the feds still need to police collections of the sale tax at points of sale.  IRS focus would merely shift from individuals to businesses ... but there's still be a need to collect, count, assess, police and prosecute a very, very large pool of players.


One problem I have with the "marketing" is the constant assurance that it wouldn't make much difference to the average family.  If it doesn't give me appreciable tax relief, then why in the hell would I want to overhaul the entire system?  TurboTax isn't that expensive.

2 person family spends 20k$ ??   lmao. 
i guess those jokers didnt hear of rent/mortgage/utilities/etc.

Its not meant to be anything more than a poverty level allotment.

It is obvious that the current tax system was designed to *fudge* the "employee" in the ass.  But I doubt the Fair Tax is the answer to make it "fair". 

IMO the inequity lies here:

$15,650 $63,700 $1,565.00 plus 15% of the amount over 15,650
$63,700 $128,500 $8,772.50 plus 25% of the amount over 63,700
$128,500 $195,850 $24,972.50 plus 28% of the amount over 128,500
$195,850 $349,700 $43,830.50 plus 33% of the amount over 195,850

So if my family is in the 25% bracket like many citizens I have the same % of tax burden as a family pulling in almost twice what mine makes if I'm at the low end and they are at the high end.  Then you have families making almost 200K a year in a bracket 3% higher.  I know that the % is not the percent on all of your income but still. 

Now who makes these high salaries?  Sure we have CEO's and such but also professionals like Dr.s etc.  They are allowed to set-up S corps to lower their tax burden. 

The lowly employee can't shelter his tax burden without going to jail.  When you have many corporations including mine making millions of dollars that have a tax rate similar to lower middle income families something is seriously *fudge*ed up. 

But hey I can save money out of my ever decreasing paycheck and get hit on capital gains tax if my investments pan out, yeah.

hmmmmm

Really?  I know a few optomotrists for example they are incorporated.  Not sure which type but I can't see why any Dr/Lawyer self employed wouldn't.  Of course I'm generalizing in that many work for corporations etc.  But if they have their own practice why not?  Pay themselves just enough to pay personal expenses and stay out of the 25% tax bracket.  Reinvest profits into the corporation and let the pharmacutical companies pay for their personal vacations.   BTW I totally agree with your last sentence as I think Fair Tax is stupid too.  Maybe I'm talking out my ass completely but I can't see why a self-employed professional wouldn't incorporate if he could.  And I bet every other self-employed person be it Painter, plumber, or any type of business is incorporated.  That is all I'm saying.  We employees don't have that luxury. 

I've been that route Walfredo.

* 7.x% self employment tax.
* Dividends taxed at income rate thus bumping the bracket (leaving it all in the company is no help, it has to come home at some point... or what's the point).
* IRS looking VERY hard at shaky exemptions and business expenses.  If you write-off that home office it had better not be able to sleep guests.
* Health insurance ~$1,000 monthly.  Now that I'm an employee I have way better coverage for $171.
* Cost of a feckin' CPA to keep it all straight.
* Inconsistent income.  Those demanding customers aren't always as eager to send you their money as they are to take your time/effort.

I know these aren't all tax issues but it adds up.  I'm now working for the man, making less and I'm probably better off financially.  More net disposable income than before.

Maybe the mega-rich have ways to compartmentalize their money and reduce their tax burden but I seriously doubt it.  The IRS isn't stupid nor are they a tool of the uber-wealthy.  They get theirs one way or another.  Income taxes, corporate taxes, estate taxes, property taxes, luxury taxes, take your pick.  It's just that 50% of $10 million annually still leaves you with a few coins in your pocket.  No reason to complain... at least not one that would find sympathetic ears.

We tend to think the other side of the fence is always greener.  I did/do.  The reality is that you trade one set of issues for another.  The very poor aren't beat up because of taxes.  They're beat up because they're very poor.