Wednesday, September 29, 2004

Tax what people consume, not what they contribute

One of the interesting things about the FairTax is the way it recasts taxation ethically. For most people their income is a measure of what they contribute to society. One can clearly point to instances where this is not so, but on average it's much closer to true than to false. The current income tax system therefore taxes people on what they contribute to society. The FairTax, as essentially a consumption tax, taxes people on what they take from society.

It just somehow feels more right to be taxing taking rather than contributing.


At 4:11 PM, Blogger Mark said...

Well, Im not so sure guad. At first blush, yes. But what if you have to pay for a hip replacement, and want to buy a new house. Should you have to pay 20,000 tax for the hip replacement? Or even 90,000 for tax on a new house?

It would be as you say, if everyone already had a house, and the big ticket items they wanted. But the real world effects of this tax could be punishing to some folks. Maybe a lot of folks.

At 8:10 AM, Blogger MARK said...

Whats "ethical" about taxing the parents of a leukemia patient 70,000 in SALES tax on their efforts to keep their child alive?

Explain that please.

Whats "ethical" about charging renters the highest sales tax on earth?

What's ethical about charging nursing home patients the highest sales tax on earth?

How can the working poor afford the highest sales tax on earth - on their utlity bill, AND their rent, AND their gasoline, AND their food, AND any medical costs, AND any food?

The "prebate" is a joke. For one thing -- Fairtax treats this as "free money" since the government gets it back. That's circular reasoning, its absurd.

But the prebate is like 200 dollars per person, per month.

But the sales tax on RENT -- by itself -- could be 200 month. Someone paying just 600 a month rent could have to pay 200 a month in sales tax on that rent.

Then that renter still has to pay his utilities -- and car insurance, and food, and gasoline.

You would have to pay this fairtax on your car insurance -- did you know that?

You would have to pay this fairtax on your utility bill - did you know that?

You would have to pay this fairtax on your gasoline - did you know that?

Add up all the things you will have to pay taxes on -- not just any tax, but THE HIGHEST SALES tax on earth.

Fairtax would be terrible for most people -- and almost insanely unfair to anyone that got sick or injured and had high medical bills.


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