Is democracy any good ??

You're wrong, but I'd like to hear your take on how the FairTax would destroy the middle class.

 

I suspect the kiss of death is just like true SS and medicare reform it's affect on seniors who actually bothered to save for their retirement would be taxed twice.

Once earning and then once consuming.

I myself would get hammered by this but I think the benefits to the economy and nation would justify it.

 

Seniors would be just fine:

1) They would receive SS payments that are larger, because no tax would be taken out.

2) They would get an additional prebate check every month (just like everyone else).

3) Products and services will cost aprox. the same once the FairTax starts.

For lower income seniors & people below the poverty level it's winning situation.

 

All true but those who saved like they should have would be taxed at a higher rate than before the change due to taxing consumption.
And seniors in the consumption phase of life would be hit disproportionately.

Like I say, I support it but people my parents age would hate it.

 

Glad to see Warren Buffett and Goldman Sachs are putting aside some charitable money for start-up companies.

Philanthropy is still alive

That's great but GS put up only half of what it pays it's execs this year. Could do more is my judgement

 

not impressed by govtSACHS generosity

 

They will not be taxed at a higher rate. The imbedded taxes (aprx. 23%) will be taken out of products and replaced by the 23% sales tax at the retail level. Prices will very quickly level out to where they would be before the FairTax was implemented. And again, they would have more money coming in the mailbox every month. It is a net win for them.

The people that will lose under this system would be workers that are making cash under the table and visitors to the US.

 

And the problem with that is?....

 

Current income tax at the federal level is progressive i.e it increase as a percentage of your income as your income increases (up to the maximum top rate of course)

Any sales tax is inherently regressive, it strikes people who make less the hardest. A rich man does not care about the price of toilet paper or soap (unless he is in the business of hotels or buying/selling those) while a poor man and even middle class person will.

Plus, things like Gas prices and necessities going up in price will hit you harder because there will be a giant sales tax slapped up on it.

 

There are ways around that aren't there?
No sales tax on food for example.

Or is it the the "progressive" part of our current tax (rich pay more) that makes you little dick hard?