furrykef wrote:
Note that Ron Paul's proposal isn't the FairTax. Not sure what his proposal actually is.
StrongRad wrote:
As I understand the FairTax, it would basically be a sales tax. If so, the FairTax encourages saving and wealth building, by taxing consumption.
I disagree, if the wealthy understand money. Money is nothing but a means to an end. The whole purpose of money is to spend it, and the only reason to save money is because there might be a better use for that money than you have now. (Even then, you have to take into account that the time you spend sitting on that money is itself worth money, especially when you factor inflation in, as your dollars will probably continuously decrease in value.) So if they are going to pay the tax one way or another, and it's just a question of when, there is no incentive to save money.
Of course, my assumption that the wealthy understand money in this way might be a big one. Their logic could simply be, "Oh, things cost more, better save my money," without any of the above reasoning.
StrongRad wrote:
You'd see the poor end up paying a larger proportion of their income as tax.
Weren't there going to be rebates for poor people, though? We discussed this in the old thread a couple years ago. You can't dismiss FairTax out of hand without fully understanding what it actually is.
- Kef
You're right, I can't dismiss something I don't understand. That's what democrats do. (What is R&P without a stupid statement about a political party?
)
What exactly is the FairTax. I've heard a couple of people say that it's Ron Paul's plan to get rid of the IRS, but none of them seem to understand what it is.
As I understand his idea, Paul wanted to abolish income tax and increase the sales tax. If this is still his idea, I still think it'll hit the poorest the hardest unless there's some sort of rebate for the lowest income tax payers (yes, I am a republican, believe it or not).
What I think we need, and I think the last Libertarian presidential candidate (Badnarik) supported was a flat tax. Take whatever you make and send the government 20% or 30% or 40% or whatever (hopefully closer to 20, but whatever) of it. Have a nice day.
This eliminates the several thousand page tax code, the multi-million dollars common taxpayers have to spend to get their taxes done, and most of the IRS in one fell swoop.
I've thought about this from almost every angle, and I really don't see a negative.