Fair tax Flat tax Or same?

Ed M: Fair tax Flat tax Or same?
I read Fair tax as you get you’re hole pay check and pay tax when you buy something (when anybody buys something Companies rich poor ) we all pay tax when we buy NO more IRS? Flat tax keep IRS and pay withal don’t get hole pay check. Or stay the same. Flat tax you keep you’re hole check $ 1. or A million but when you spend it weather its to buy The Company Yahoo or a beer thats when you pay the tax. No more IRS just one money Where is the Question Fair tax sounds good am I wrong what am I missing???
I am going to get the book about Fair tax I guess I need to know more

 
Answers and Views:

Answer by Ripper
The flat tax is when everyone pays the same tax rate. The fair tax is usually viewed as a sales tax, but that would be the only tax. The fair tax would be high around 25% – 35%.
But its never that easy. If the fair tax would happen it would only be a matter of time before some state would impose thier own tax. Remember Income tax didn’t start until the early 1900’s and was only 3%. And that was supose to be temperary just for the war.

Answer by bostonianinmo
Who will collect the “Fair” tax? Yep, the good old IRS! They might rename it to something that sounds sweet, but it will be the same old IRS with scary NEW powers to combat the black marketing that will result from this STUPID 30% sales tax.

How about a $ 6,000 TAX when you buy a new $ 20,000 car? Do YOU have that kind of scratch laying around? I damn sure don’t! And how about the $ 60,000 TAX on a new $ 200,000 home?

A flat tax would be no better. It would have to be levied at 25% to 27% to equal the revenue of the current graduated income tax. It would be a good deal if you were rich and paying taxes at 35%, but a terrible idea if you were middle class. Consider that a family of 4 with $ 40,000 in income pays nearly zero in Federal income tax. Under a 25% Flat Tax, they’d now pay $ 10,000. That would bankrupt them.

A graduated income tax is the fairest of all possible taxes. It’s directly linked to the taxpayer’s ability to pay. No other tax takes that into consideration with the occasional exception of property taxes. They’re OK until you retire on a reduced fixed income. At that point they become regressive and are no longer equitable.

Answer by shoredude2
Some would view the tax rates in the fair tax as high. But a lot of the price you pay now for items go to pay the taxes for the company who sold it to you and the company that manufactured it. So prices would come down since companies wouldn’t have those cost imbedded into the price.

Also under the Fair Tax, each legal resident of the US would recieve a monthly check to defray some of the taxes of the Fair Tax. The check would not be based on your income, it would only be based on your household’s size.