I'm not very familiar which the proposed mechanics, how does it do this? I'd assume the tax would be taxed at the time of sale so how do they not pay tax on it? The only way I can think of is either they carry around proof of their income with them for every purchase they make or they save receipts for every purchase they make, submit it at the end of the year, and get a refund. Either scenario sounds difficult to implement.

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Posted by Zach

Gizmonic Institute

Member since May 2005

112666 posts

Posted on 12/3/16 at 1:31 pm to DavidTheGnome

quote:
I'm not very familiar which the proposed mechanics, how does it do this?

The Fair Tax does uses actuarial numbers to determine basic needs of food, housing, etc for a family of 'whatever' and they get a prebate for that amount.

As a poster above said the Fair Tax makes the progressivity argument moot. The problem still remains that you would have to pass a repeal of the income tax before implementing it. Otherwise politicians would just add the sales tax to the current tax structure.

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Posted by Bestbank Tiger

Premium Member

Member since Jan 2005

71571 posts

Posted on 12/3/16 at 8:39 pm to DavidTheGnome

quote:

I'm not very familiar which the proposed mechanics, how does it do this? I'd assume the tax would be taxed at the time of sale so how do they not pay tax on it? The only way I can think of is either they carry around proof of their income with them for every purchase they make or they save receipts for every purchase they make, submit it at the end of the year, and get a refund. Either scenario sounds difficult to implement.

It's based on the assumption that 100% of their spending is on goods essential for survival (food, clothing, medicine, etc.)

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