California is providing services to immigrants who do not pay taxes because they are employed illegally. This is a factor on why California is teetering on the brink of bankruptcy. However, if the FairTax was implemented, all immigrants pay their fair share of taxes when they buy goods and services, regardless if they are employed legally or not.
why not removing any sort of income tax brackets and have everyone pay the same percentage amount of their earnings in taxes. First of all this would be truly FAIR. Then it would keep the masses working hard and force the government to stop spending on needless things. The majority of people would then ensure government is actually staffed by people who are knowledgeable of MANAGING available funds rather than having idiots sitting around whose only purpose in life is to collect lobbyists' "contributions". What brings our economies worldwide to a standstill is not Wall Street, is not Goldman Sachs, no, it is our very governments who are filled to the hilt with filth, bribes, questionable contributions that keeps our representatives away from actually representing us but representing the contributor.
The flat tax retains the invasive income tax administration apparatus and can easily revert to a graduated, convoluted mess, as it has many times over many years. In contrast, the FairTax is simple, easy to understand, and visible. It cannot be converted into an income tax.
The FairTax is a bad idea unless what you are after is making the ultra rich, richer and widening the income gap. You know it is the rich who dreamed up the idea of a retail sales tax. They will pay millions less while you and I will pay more. If you are truly wanting fair, then tax ALL income the same rate, even for the very poor and for capital gains, dividends, corporations, churches, everyone and every entity will be taxed the same on every dollar earned and also on unearned income. Remove the mortgage deduction and charity deductions along with a host of other deductions that are basically government subsidies. Another problem solved, now it's Miller Time.
Without trying to sound pompous, your very wrong. If you truly have an open mind and do the research (not much its simple) you'll see why your wrong. I'd explain, but I have to go.
The FairTax is an excellent idea. Rich people tend to buy more stuff, buy more expensive stuff (planes, cars, houses, etc.) So, with the FairTax, rich people will actually pay more taxes, as they buy more stuff.
This thought is exactly opposite to how legislators think. I do not see how this would change anything, how it would be expected they would reduce the rate, or how it would keep them from increasing the rates. And they certainly would never "attack the expense side." This is a fantasy. Congress and the president have always felt free to monkey with tax rates such as cap gains, death tax or anything else. With the huge level of debt, taxes will only rise and services will suffer without costs going down.
i find your argument self defeating. if you knew about economics you would know the baro-ricardian equivalence theory. this relates to my next comments. if you borrow money to increase demand at present time you have to take higher taxes in the future to pay it back with interest. therefore if poor people do not have to pay tax the wealthier people have to pay more tax in the future with interest on top. thus is it better to increase demand at present by reducing tax for poorer people who have a higher propensity to consume. meaning less tax reduction is need to have the same increase in demand than for wealthy people.