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Flat Tax or Fair Tax?

Mike T2 Wrote: Jan 31, 2013 12:01 PM
Delk, Actually the Fair Tax was written to include a "pre-bate" where below a certain income level you receive a check for the average amount you would pay in tax for the month on "basic necessities". Or something along those lines, it's been a long time since I've read about it so my memory is hazy. I never liked this idea and would rather see a system where you simply don't charge the tax on basic necessities. I would think that modern database systems used in stores and modern computing power would allow the government to very quickly and easily set that up. Or at least as quickly and easily as the government could work. It would be a case of needing to set guidelines for what is and what isn't a "basic necessity"
jmccune Wrote: Jan 31, 2013 7:38 PM
(for instance, is a $100 pair of jeans a "necessity when I can get a $20 pair?)

Mike, this is the beauty of the prebate, every household gets a prebate according to family size, regardless of income or wealth. It allows each individual, not some government beaurocrat, to decide what their basic necessities are. Yours may be rent and food, mine may be cigarettes and beer. That's what makes it the FairTax.
Mike T2 Wrote: Jan 31, 2013 12:04 PM
(for instance, is a $100 pair of jeans a "necessity when I can get a $20 pair?).

I really prefer the Fair Tax because it gets rid of all the exemptions and all that. People would get a FULL paycheck and it would be difficult to raise the Fair Tax percentage as the raise would be VERY visible. This is the big reason why politicians don't like it.

I’m at Hillsdale College in Michigan for a conference on taxation. The event is called “The Federal Income Tax: A Centenary Consideration,” though I would have called it something like “100 Years of Misery from the IRS.”

I’m glad to be here, both because Hillsdale proudly refuses to take government money (which would mean being ensnared by government rules) and also because I’ve heard superb speeches by scholars such as Amity Shlaes (author of The Forgotten Man, as well as a

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