Fair Tax Cons

The fair tax is a tax reform proposal that was first introduced on July 14,…

The fair tax is a tax reform proposal that was first introduced on July 14, 1999. Under this new tax law all federal taxes would be replaced with one single tax on retail sales. This tax rate would be 23% of all total payments made. (For instance, for every $100 spent you would pay a tax of $23). This is equivalent to a 30% traditional sales tax. I have researched this topic and found there to be more negative than positive aspects.
Under the current income tax, a persons individual tax rate covers their entire income minus their deductions. But if the “fair tax” is ever passed a person will have not one but two tax rates. 1. A sales rate of 30% and 2. An income tax rate that will be determined by how much you consume. What this means is although everyone pays the same sales tax of 30%, that rate applies only to what they’ve consumed and not your income as stated in the current income tax. Some examples of consumable items are as follows, food, clothes, rent, health care even the utilities that you pay.
What really got me was not covered under the tax is estates, gifts and capitol gains. It is known that a lot of poor people rent their homes and don’t own them. Under this new tax they would be responsible Cell Cycle Independent Chemotherapy for paying a 30% increase on not only their rent but also their utilities. The poor also spend more money on consumables than the rich. They will ultimately being paying more taxes than the rich.
What is really scary is if this plan would ever go into effect, there would be a 30% in healthcare too. Under the “fair tax” your doctor visits, surgeries, hospital stays even prescription medicine will be raised 30%. The elderly and the sick will be hit the worst. I think that if this is passed there is going to a rise in unemployment, people will not be able to afford to go to the Dr. when they are sick in turn they will lose their jobs. And speaking of jobs since “fair tax” will kill an employers deduction for contributing to health care for their employees, Companies will no longer provide health insurance to their workers. Our health care right now is at an all time high and the last thing this country needs is a rise in health care cost.
In 2010 The Census Bureau reported that Americans are over 886 billion dollars in credit card dept. Under the “fair tax” credit cards will be taxed 30% on top of what you already owe. Not to mention the 30% increase on your mortgage also. And if you need any kind of legal services be prepared to pay the 30% tax for your lawyer.
I did notice as I was researching the fair tax that eliminating the IRS is mentioned a lot. It seems to me that they want you to believe that this is really going to happen. They may be able to cut the size of employee’s down and change the name, but someone is going to have to over see the collection of these taxes.
And furthermore one last misconception is that this “fair tax” is going to lower everyone’s taxes. But the ugly truth is that we will be paying more taxes and the richer you are the better off you are. The middle class and the poor will be hit the worst. Why would our country even propose to take a chance at risking our Another Word For Medical Treatment entire economy on a tax plan that will have flaws and even if it did eventually work, it would take decades to get it to work right. Our economy cannot handle taking a risk this big. So if I was asked my opinion on this I would have to say no to the “fair tax”. It doesn’t seem like there is anything fair in it at all.