Rep Carter proposes the new FAIR TAX, which would eliminate the IRS and the Income Tax

[reason10]

This is not a new idea. It was being debated, along with the flat tax as far back as the 90s.

https://www.newsmax.com/newsmax-tv/buddycarter-consumptiontax-irs/2023/01/14/id/1104402/

Rep. Carter to Newsmax: New 'Fair Tax' Law Would Eliminate IRS

Carter said in a statement earlier this week that the fair tax has been in the works for several years, after having been first introduced into Congress in 1999 by former Rep. John Linder, R-Ga.

It would eliminate all personal and corporate income taxes, the death tax, gift taxes, and the payroll tax by repealing the current tax code and replacing those taxes with a national consumption tax, which would allow Americans to keep all of their earnings. 

"Look, nobody likes paying taxes," Carter told Newsmax. "The person in Maine who won $1.35 billion ... they're not gonna like to have to pay taxes on it. But given the choice between a consumption tax, a property tax or income tax, or a payroll tax, people prefer a consumption tax. You can control it then, and that's what the fair tax is."

The consumption tax would be set at 23%, said Carter, adding that "this is not going to impact the bottom [income] people," as provisions would be made to allow people to purchase essential items. 

This is the FAIREST tax of all. EVERYONE PAYS HIS/HER FAIR SHARE.

An achiever buying a $200,000 Mercedes S Class Sedan would pay $40,000. (I rounded the rate to 20 percent)

A homeless stew bum buying a bottle of cheap hooch for $5 at a liquor store would pay TEN CENTS.

it's fair to ALL income groups.

 

[Rebound]

It’s a regressive tax, however.  

[Michael Hardner]

1 hour ago, Rebound said:

It’s a regressive tax, however.  

Given that 57% can't afford to pay income tax and pay nothing, this amounts to a tax increase to those households.

 

And that's not even considering the Medicaid cuts that would likely have to go with this.

 

 

https://www.cnbc.com/2022/03/25/57percent-of-us-households-paid-no-federal-income-tax-in-2021-study.html

[Guest]

Second article to come up in Google estimates it would have to be around 60% to replace the current tax system. 

https://www.brookings.edu/on-the-record/the-pros-and-cons-of-a-consumption-tax/

Imagine, as the article states, paying income tax your whole working life and then suddenly being taxed 60% on all the money you had saved for retirement.  There's a good reason for a coup, if ever there was one.

On the face of it, a dumb idea going nowhere.

Edited January 15, 2023 by bcsapper
There's always a typo...

[Rebound]

22 minutes ago, bcsapper said:

Second article to come up in Google estimates it would have to be around 60% to replace the current tax system. 

https://www.brookings.edu/on-the-record/the-pros-and-cons-of-a-consumption-tax/

Imagine, as the article states, paying income tax your whole working life and then suddenly being taxed 60% on all the money you had saved for retirement.  There's a good reeason for a coup, if ever there was one.

On the face of it, a dumb idea going nowhere.

I don’t want to say “dumb,” but I agree that it is not practical. But a modest national sales tax could help balance the budget. 

[Guest]

2 minutes ago, Rebound said:

I don’t want to say “dumb,” but I agree that it is not practical. But a modest national sales tax could help balance the budget. 

I agree.  As an Albertan, I have long argued with my friends and colleagues for a PST.