The Fair Tax Act of 2023 would dispose of all forms of Taxation, as well as the IRS
Afterwards it would make up for lost revenue by raising the National Sales Tax to 30%
The Pros
1.People will have more money in their pockets due to the government not taking out 100’s of dollars from their paychecks every week
2.Illegal Immigrants will pay their fair share of taxes since they will have to pay them whenever they purchase goods and services
The Cons
1.Goods and Services would be slightly more expensive.
Personally this would make my life better but how would it affect you?
24 comments
Wow only one con! That sounds great op!!!!
Well it totally screws poor folks.
A VAT would be smarter than a pure sales tax.
I think both would make my life easier where I am right now but it is really hard to say unless I knew specific details of what I would be paying.
It would devastate the economy and create a large black market. Whoever came up with it is an idiot who lives in fantasy land. Sounds good until you think for more than a few seconds on it.
30% federal sales tax would be a massive hike on the price of all goods.
> dispose of all forms of Taxation […] afterwards raising the National Sales Tax to 30%
Do you see what you just wrote?
To think that anyone could anticipate all the ramifications of such a change is incredibly naive.
If the government runs on X dollars of tax revenue, that’s what it will collect. You think you’re winning because they take it out of your left pocket rather than your right pocket?
Or if they collect less tax, then we as a population are going to give something up as a result.
> Illegal Immigrants will pay their fair share of taxes since they will have to pay them whenever they purchase goods and services
If your concern is people not paying their fair share of taxes, you may want to deal with the tax avoidance and evasion schemes common among the ultra-wealthy, before worrying about illegal immigrants, many of whom earn under the federal income tax threshold anyway.
Illegal immigrants are already bringing benefits of having cheaper meat and produce and services.
Often they get taxes taken out (which they don’t get back because they don’t file taxes).
Rich people already get around sales taxes.
Cars and jets are company expenses.
Everything is written off.
30%? I already own my home, but not sure my car will last me the rest of my life.
And “illegals” actually pay taxes, sorry to burst your prejudice.
The rich on the other hand…
Flat tax may save you a dozen dollars a week, but it will save the rich thousands.
Personally, I like my roads paved and my water cleaned. That means everyone needs to contribute.
A effective 40% sales tax on everything would be **absolutely devastating** for my family.
Increainsgmy federal tax burden fromlike…I don’t know, 7% to 30% sounds terrible.
All the poor people will have more of their income dedicated to basic goods. This will leave them with less money to invest in themselves ensuring they stay poor.
Theft will increase to avoid sales tax.
Illegals pay taxes as that’s how they eventually become legal.
Since there’s no IRS, money won’t be collected unless you set up another agency to collect the taxes. You could call it the Internal Tax Service or ITS for short.
This sounds like it was written by an idiot that hasn’t studied tax.
> The Fair Tax Act of 2023 would dispose of all forms of Taxation, as well as the IRS
>Afterwards it would make up for lost revenue by raising the National Sales Tax to 30%
where the National Sales Tax will be administered and collected by
a federal agency that differs from the IRS in name only.
>1.Goods and Services would be slightly more expensive.
Slightly? Lol
It is a tax on the poor.
I am poor.
tax the rich
You call a 30% increase *”slightly”* more expensive? 😮💨🤷
It would make my life worse because it’s a really stupid idea. Only idiots think it’s worth more than the ink used to draft it.
What a stupid idea.
I guess I would technically benefit from it. But like 90% of my friends and family would suffer. My parents and in-laws are on fixed income, this would devastate them.
And of course all the sponsors are republicans.
That would never function in real life. He’s making a statement. This will die in committee pretty much instantly.
This is a policy that disproportionately screws over the poor and middle classes.
If you make $50K or less a year, I don’t know why tf you would want this.
Even as a high income person I wouldn’t want this because my quality of life is worse the more poor and desperate people there are around.
If I wanted to Scrooge it away in a high security McMansion to keep out the gangs and kidnappers for ransom, I would just move to the Philippines or something.
I think you have some either misguided or simply poor info on a lot of things…
>dispose of all forms of Taxation
*including Corporate taxes. the income and profit that major companies pay (or avoid) is gone. And it does nothing about your **state** taxes.
>as well as the IRS
Who would be responsible for collecting the sales tax? perhaps create an agency to handle Internal Revenue?
>raising the National Sales Tax to 30%
Goods and Services would be slightly more expensive
In order to do this it needs to create National Sales tax. Unless you live in AK, OR, DE, MT, or NH things just got a lot more expensive. In those 5 states $100 of goods now cost $130, and if you’re in LA or AR it’s closer to $140. 30%+ more is not , to most people, slightly more. The avg new car is $48kbut under this plan it’s now $68K…before the state tax. If I promise to give you 12% back only to take 30% later that day did I give you anything back?
>People will have more money in their pockets due to the government not taking out 100’s of dollars from their paychecks every week.
The Highest tax bracket in the US is 37%. that’s 37% of income over $693,751. so if you make $693,752, you’d pay an extra $0.37! the median income in the US is around 31K or 12%. If you buy *anything*, you are not saving money.
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>Illegal Immigrants will pay their fair share of taxes since they will have to pay them whenever they purchase goods and services.
They already do. Both in already established sales taxes, unfiled tax returns ( illegal use of false or stolen SSN) and use If ITNs. In 2019, according to the IRS, more than 2.5 million tax returns were filed using ITINs, accounting for nearly $6 billion in taxes. If an employer withholds taxes and the return is not filed…where do you think the money goes?
It would, like all sales taxes, disproportionately affect the poor and working class. The wealthy have the option to avoid a National sales tax by buying outside the country, the poor and working class have a 30%tax they can’t avoid. Ma and Pa making 68K have gone from a 12% tax bracket to 30%+ on everything they buy.
>Personally this would make my life better
I don’t know you or your financial situation, but unless you are making $700k+ per year, the numbers don’t do you any favors, even if the rhetoric does.
I have a Roth IRA retirement account. The benefit of it is that I put in after tax money and the gains don’t get taxed when I take them out. How is the government going to compensate me for that lack of benefit? I could have used before tax money for a trad IRA. Not the biggest concern, but it will be a problem for a lot of people.
Why did everyone use taxed money for a tax free retirement when they could have used tax free money (that was supposed to be taxed in retirement) and it will be tax free in retirement anyway?
Illegal immigrants already send much of the money they make back to their family in their home country. They don’t spend it here. This is not the benefit you think it is.
Paying taxes on the front end or back end doesn’t matter. You are going to pay them anyway unless you spend *way* less than you earn.
The only one-tax-for-everything that might be a decent idea is a national property tax. Wealthy folks with vacation homes are paying more than the average person. Land lords will pass this cost down to renters, so everyone ends up paying in one way or another. This includes the illegal immigrants you are worried about. But since renters don’t have payroll taxes, it should even out.
I am a home owner for the record. Super modest house. I would expect all the other taxes disappearing and an increase in property taxes would be about equal for me. Might even benefit me since it’s such a cheap house. My income is the median for this area and my home value is below the median. Might be pissed about the retirement account losing its tax advantage, but I’ll take that hit if the property-only tax system benefits me.
And just to add fuel to the fire, car and home prices will be crazy with a 30% sales tax on them. You think gas prices are high? Just wait for that added tax.