Your statement is an assumption on not knowing the fair tax plan. I think if you listen to someone explain this or take time to really read it and understand it, you would see that we will be paying the same for the products we use but in most cases less because there is a lot of waste in government and a lot of wasted time in the corporate world. Wasted time in the corporate world means higher prices for you and me on goods.

This is just a brief description of what would happen if we went to the fair tax. This is a tax that would get rid of federal taxes, not local, and would put a tax of about 23% on NEW goods and/or services from the US sold domestically and internationally. It helps if someone has some general knowledge of Manufacturing or Business. If you don’t understand a lot about it please do not assume things to be one way. This is a simple explanation on how goods are produced and how the taxes put on business effect the cost of the goods we buy. Also, realize that the manufactures that create products use other products from other companies to create it. In turn those companies that supply the parts also use other companies’ products and so on and so forth.

We will use a bigger business like GM. GM uses parts and raw materials from other companies. This also includes the robots and tools etc. that other companies have made for them (Showing how interconnected business really is). These things cost money which in turn affects the cost of the Car they are making. Along with that is the employee cost (what you and I make). There is also indirect cost of doing business (healthcare, retirement, etc.). There is also other cost that the employer pays that some are not as aware of like taxes. Not only do you as an employee pay taxes but the business pays taxes too, a lot in fact. Also the business has to hire accounts and other professionals like lawyers to decipher the tax code. This is a big deal for business because if they don’t pay the right amount of taxes there in big trouble with Uncle Sam. So a run down.

-Taxes paid by business (big money)
-Accountants time (big money)
-Lawyers time (big money)

So if there were no taxes to pay and no fees for the lawyers and accounts, this means the company does not have to pay that expense, therefore the cost of doing business went down in turn the cost of that car goes down. This just doesn’t happen for GM but the suppliers as well. The cost for parts goes down for the same reasons because this would affect all business as it does here.

So it cost less for Gm to make the car and cost lest for the parts assembled there for the car is twice as cheap as it cost now!

So you just punched out your time card. You’re not paying any income tax now. You have more money in your check! This stimulates growth (Bush tax cuts are overwhelming proof of this). So now you have more in you bank account and you’re looking for that new car. You go to the dealer and see that the car that was selling before the fair tax was $23,000 now that car is going for $13,000 because the cost of business is less. Yes you will pay 23% in tax on that new good or service but your still making out because you have more money in your account to spend on it!

But this doesn’t include the wasted money in the IRS that is used to check and audit you 1040’s. This would be removed because the role of the IRS would be extremely down sized. The wasted money could go to things like social security.

Also not only Americans would pay the tax but everyone that visits and buys goods and/or services in the US from other countries but anyone that buys American goods! That means illegals too!

So once again tell me how this is a bad thing?

I don’t want to flame but this really is a go

 

As for everyday stuff like the groceries yes you pay a tax on it. 23% on every new good or service. 1st the prices of those goods will go down and the goverment will issue a check to cover the cost of that tax up to the poverty line for evey american. No illegals

 

AH..... VAT (value added tax)... got ya. So it costs more to manufacture becuase of the tax and thus the tax adds up and replaces everything else. Works elsewhere, might work for us I suppose.

Might as well just call it what it is. I'm not fighting you, just trying to get the real story without reading through the "Bi-partisan" BS.

MDFF

 

I didn't want to come off like I was trying to fight also!

That's geat that you want to go out and find info and spar conversation. I haven't heard it called that around hear but that is the idea behind it. If you really think about it...it works a hell of a lot better then the system now. My only concern is a black market on new goods and services?

 

Yeah, I was thinking about that to. Seems like it would become a big problem, but maybe not. I guess there would be a lot more "under the table" work going on.

My big concern is that this would tumble the country into a ressesion because the "precieved" cost of items would rise dramatically. People would not spend as much and businesses would suffer. I'm really hung up on that.

MDFF

 

But if everyhthing is explained clearly most should understand it. The taxes would have to be cut first then the extra money would stimulate the buying and the tax could then be applied.

 

Don't underestimate the stupidity of the American public... not all, just most.

MDFF

 

that is true!