quote:
Personally I prefer the flat tax because a fair tax would decentivize buying big ticket items. (Cars, Houses, boats, RV’s, etc....) and incentivize not spending money

The fair tax argument is that prices go down without the corporate income tax. Wages go up as well (imagine taking all of that FICA home as well).

People are still going to spend.
Have you seen the "poverty level" in the United states?
Cars, flat screen TVs, iPhones. People live to consume. What do you think people would be saving for if not to spend it later (hello, retirement).

The only real argument against the fair tax is the real reason why it is coming in the next 20 years. Roth IRAs have already been taxed. They would be taxed again (everything saved would be taxed again as it is spent). The federal government has been trying to scheme ways to get dibs on those funds for a long time. The fair tax would reach it and make a lot of programs solvent again for the long term.

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Posted by baldona

Florida

Member since Feb 2016

20461 posts

Posted on 10/12/20 at 2:23 pm to meansonny

quote:
The money absolutely comes from somewhere.

Most people don't understand this though. They automatically assume flat tax means less taxes, less complications.

quote:
Instead of taxing the "profits" that an accountant leaves you with, you tax the revenue as a pass through.
Instead of a very small amount of contributors to taxes, you are increasing it to every single business who sells a finished product (whether they profit or not).

Well that's a lot simpler....There is absolutely no way you can tell me that taxing revenue is easier than taxing profits.

You have to be absolutely ignorant to think this is easy. Some businesses may have 80% profit margin on revenue some businesses may have 80% expenses. You simply can not just tax gross revenue.

Taxing "net" or whatever it is called revenue would be no different than taxing income. Its still going to be incredibly difficult.

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Posted by meansonny

ATL

Member since Sep 2012

25617 posts

Posted on 10/12/20 at 5:01 pm to baldona

quote:
simpler....There is absolutely no way you can tell me that taxing revenue is easier than taxing profits.

You have to be absolutely ignorant to think this is easy. Some businesses may have 80% profit margin on revenue some businesses may have 80% expenses. You simply can not just tax gross revenue.

Taxing "net" or whatever it is called revenue would be no different than taxing income. Its still going to be incredibly difficult.

Are you trolling?

It is a sales tax. Just like you pay every time you go to a gas station or grocery store.

By revenue, think gross revenue.

What is hard to comprehend that gross revenue is being taxed when you are taxing the sales price of a new item.

It absolutely is easier and less complicated than income.

Let me know what your questions are. This seems a lot harder for you than it needs to be.

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Posted by baldona

Florida

Member since Feb 2016

20461 posts

Posted on 10/13/20 at 12:09 pm to meansonny

quote:
It is a sales tax. Just like you pay every time you go to a gas station or grocery store.

By revenue, think gross revenue.

A sales tax is added on and paid by the customer. Huge difference between that and income tax. If you are talking about a flat revenue tax paid by the customer then those not currently paying income tax won't be changed. They aren't, the customer is.

I don't think you are in accounting or understand business revenue very well if you think just adding a flat tax on Gross revenue will be simple. Because it won't.

What about services like investments or banking? Every time a bank makes a mortgage, they are paying a 1% tax? Every time an equity is purchased a 1% flat tax is added?

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