Fair Tax not so fair
For once I wholeheartedly agree with my good friend Keith Crosby, at least on one thing – that everyone should "Read up on the Fair Tax." Information is easy to find on the Internet – both pro and con. The fact that the law is supported by "successful business professionals" speaks volumes.
The so-called 23 percent tax is only for the first year and would be readjusted every year. It is also an embedded tax, not an add-on tax. For example, a retailer would charge a consumer $100 for a good or service. A "Fair Tax" of $23 would be paid to the government, leaving $77 for the retailer. However, the consumer is actually paying a tax of 30 percent (.23/.77=.2987).
This "Fair Tax" would be on everything! Most services today are not taxed but would be under this plan. In my opinion this tax is very "unfair,” with the middle and working classes bearing the greatest burden. The poor would get a monthly Family Consumption Allowance (FCA) and the very rich could live offshore in their mansions and buy and register their airplanes and yachts in foreign countries.
Those hurt the worst would be young middle and working class families just getting started; a $200,000 home would cost $260,000, and a $30,000 car would cost $39,000, etc. Keith and I already have our homes, as do my children, but my grandchildren do not.
Many retirees would also be hurt because many who have worked and paid taxes all their lives are now paying little or no income taxes due to tax laws regarding Social Security, IRAs, and 401Ks. Except for living a "little higher on the hog," the very rich pay about the same as we do for their medicine, gas, milk, eggs, bread, and toilet paper.
Read up on the "Fair Tax," and whether you are Republican or Democrat, Conservative or Liberal, Libertarian or Socialist, if you are retired or draw a paycheck, I believe you will find that this plan is not in your best interest.