@stopgopfox@libretooth.gr
I'd reference this website.
They literally wrote the book outlining the plan. I have a copy of the actual book around here somewhere. I probably picked it up decades ago.
For example:
> "In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free."
@joeinwynnewood @stopgopfox@libretooth.gr
It comes across as rather naive to say that the IRS only goes after tax cheats, akin to saying the cops only arrest guilty people.
No, it's no secret that the IRS audits people from all walks of life, and heck, it's easier for them to go after folks who aren't so well off because their finances are easier to audit AND they have less resources with which to fight even erroneous claims against them.
As for redistribution, the FairTax proposal is built around regular payments covering the cost of taxation on necessities, which is the opposite, a redistribution of wealth away from the wealthy to the poor.
Too often I see people failing to mention that core pillar of the plan.
It's disingenuous to argue against what I didn't say, underlining the bottom line fact, FairTax is a massive wealth transfer to the richest of the rich. No amount of buffer for the bottom of the pile will change that.
Eliminating the IRS doesn't fix problems with tax enforcement. More resources so the IRS can go after wealthy tax cheats, as recently done, fixes problems with tax enforcement.
Fairtax.org shouts a great big lie on its home page obliterating everything else.
@joeinwynnewood @stopgopfox@libretooth.gr
How exactly do you see a program that actively transfers wealth from rich to poor as being a massive wealth transfer to the richest of the rich?
I really don't understand how you can get to your conclusion from what's in front of us.
@volkris @stopgopfox The math isn't overly hard. A middle class person spends a very significant portion of their income on goods and services. They will therefore pay a 30% tax on 90% of their income, give or take, a 27% effective federal tax rate.
The top marginal rate for a married couple with taxable income up to $178k (gross income over $200k) is 22% with an effective rate well below that.
Add in payroll taxes of 7.65%, and at best about the same, though 6.2% of that is only on the /1
@volkris @stopgopfox first $147k of income.
How about someone making several $M? What % of of their income will they spend on goods and services? 10%? 20%? 30%? Let's go with 30%. 30% on 30% of their income is a 9% effective tax rate; current top marginal income tax rate? 37% on everything over $648K.
Sure, they'll hide what they can, but only the wealthiest of the wealthy can cut their effective rate below 15%.
It's VERY clear that the top 1% will reap a huge windfall /2
@volkris @stopgopfox while everyone else will either pay to make up the difference or go without the services the missing tax $ pay for, like Social Security, Medicare and Medicaid.
And that doesn't even take into account corporate taxes. No IRS, no corporate taxes either... /e
@volkris @stopgopfox
From the front page:
"The IRS is being weaponized ...
And their target is YOU."
The only target of the better resourced IRS is millionaire & billionaire tax cheats.
The tax code certainly needs changes to restore it as a truly progressive method for funding the US government.
Eliminating the IRS & expecting state governments to collect & remit a national 30% sales tax, which IS the GOP proposal is a massive redistribution of wealth to the oligarchs.