In response to:

The Flat Tax the U.S. Effectively Already Has

Scrap Iron in Texas Wrote: Dec 10, 2012 7:24 AM
Please don't EVER suggest ANY SORT of a VAT> This is taxation gone wild. Sure it raises revenue, but it also raises prices, and the VAT is pretty much hidden. The Fair Tax is superior to ANY system of funding a government. And THAT is what a system of taxation is for-funding the government, and NOT as a means to reward or punish, as our current income tax code is used.
Roy323 Wrote: Dec 11, 2012 5:00 PM
Scrap Iron-It (the "Fair Tax") will never be implemented IMO because, like all other Taxes the cry to "EXCLUDE" a, b c -z, would negate any possible benefit! We have already proven that by excluding welfare income totally from taxation. The "rank/File" will NEVER ACCEPT TAXING CERTAIN ELEMENTS OF society!
Roy323 Wrote: Dec 11, 2012 4:54 PM
I had some experience with VAT somewhere (Italy) in the past and found it to be quite expensive. I certainly wouldn't recommend the US implement such a thing!
johnm h Wrote: Dec 10, 2012 2:03 PM
VAT does the same but how would the state demand payment when those informal sales networks would be unknown? The Fair tax relies on competition to dig them out and report on cheating. This would be a nightmare. The vat, when linked to a flat tax is automatic. While some industries will seek lower rates of sales and vat for certain goods, if it's a vat even that is harder and if linked to a flat tax it becomes harder to raise either of them.
johnm h Wrote: Dec 10, 2012 12:55 PM
I read the book on the fair tax and think it's a great idea. It has no chance with either party while a flat tax has some chance and democrats, once we have won an election or two, might support a VAT. I also lived in New Zealand in the early stages of their market revolution. A free market Minister of the Treasury turned the place around, the schools, environmental policy and debt and deficits. The backbone of the reforms was an across the board VAT and a 50% cut in income taxes. The only arguments I’ve seen to oppose a VAT confuse it with a rollover tax which is about the worst consumption tax one could think of. The other reasons are that it raises too much revenue and that it’s hidden. It isn't hidden.
jbrown63 Wrote: Dec 10, 2012 11:02 AM
No on VAT. Yes on Fairtax.org
jbrown63 Wrote: Dec 10, 2012 11:01 AM
Fair Tax beats all the other plans.
Scrap Iron in Texas Wrote: Dec 10, 2012 10:26 AM
I would encourage you to get the fact about the Fair Tax.
First off, it ELIMINATES the income tax.
Embedded taxes average 22% of the price of everything you buy.
It is collected like the state sales tax so cheating by a (your words) "minority communities would open vast retail networks among themselves to sell imported stuff below a sales tax. " would not be possible as the state would demand THEIR tax (along with any Fair Tax due).
And the Fair Tax eliminates the politicians from manipulating the tax to favor one industry, one business, or even one person in exchange for campaign funds.

The Fair Tax will ONLY be implemented when "We, the People" DEMAND it.
johnm h Wrote: Dec 10, 2012 8:22 AM
Vat and sales tax have the same effect on prices, it is more difficult to cheat with a vat because vat is collected at the border. With a sales tax minority communities would open vast retail networks among themselves to sell imported stuff below a sales tax. There is a lot of confusion about the vat. At the moment it is a bad idea because it's a cash cow, but it can be the most efficient way to raise revenue with the least damage to the economy. The VAT is not hidden. A 10% tax for instance would be collected at each stage with taxes already paid deducted by that tax paying entity. The final sale says VAT 10%. Check out how it worked in New Zealand, they lowered income tax rates by half, and imposed a uniform VAT.

Harvard economist Greg Mankiw offered a unique observation following the release of the findings of a CBO study on the effective marginal tax rates that many Americans really pay on their incomes, after taking into account any government assistance they might receive and the income levels at which their welfare benefits phase out:

The Congressional Budget Office has a new study of effective federal marginal tax rates for low and moderate income workers (those below 450 percent...
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