I'm open to hear anybody's problems with the Fair Tax?

Bring it on,fair tax,no IRS,sounds great to me. The rich do spend money,the poor will always get hand outs.

Change the tax-----everyone saves and pays!

Get rid of the IRS----Save billions!

Get rid of welfare-----more working Americans!

Get rid of all illegals----more jobs for Americans and save billions on free handouts!

Would not take long to bring our economy back up.

I believe use taxes are much fairer than income taxes. Taxes are paid on purchases by ALL consumers and those who save their money are not penalized for doing so.

Since the IRS is not going away anytime soon, I personally would prefer to see a flat tax where everyone pays the same percentage with only deductions for depndants and a streamlined filing system.

I am not opposed to a fair tax plan but prefer a flat tax plan instead..

Our current system is badly broken and desperately needs an overhaul. Several years ago, I did a research essay on a flat tax proposal and you would be appalled at the amount of our time, money, and resources are involved in paying our taxes. The estimated flat tax rate needed to nearly double federal tax income is only in the 6%-9% range. At that rate, the deficit could be reduced and soon erased and we would be able to reclaim much of our debt from China and the Mideast.

Well, I guess that the fair Tax would allow the rich to pay less taxes if they saved and didn't spend. As you only pay tax on what you spend, you could certainly save money by not spending. I think it would hurt the economy, because the economy relies on spending. However, I could be wrong as it has been said many times, "Americans spend 110% or what they make."

I would prefer to have a flat tax and no IRS. Let's just pay 20% or what we make, no deductions like many state income taxes. That is fair.

First the IRS will not be abolished. To whom will the checks be sent from all the doctors' offices and hospitals that now charge 30% (not 23% as they lie) for their SERVICES? Who is going to waste the money CUTTING CHECKS each month for these bogus "prebates" which the government provides based on what they in their wisdom claim you SHOULD have spent? If it's not called the IRS, who cares. No "FairTax" fairy out there to do all that for free.

A few other facts to consider:

It is regressive, hitting the poorest, hardest, because the rich WILL circumvent the law (will be easy for them to do--their businesses will provide food and buy the medical supplies and care; they'll get their expensive toys from other countries; they'll support smuggling operations, etc.)

THe most vulnerable, the disabled, will be driven into bankruptcy and onto the welfare rolls and Medicaid so that this will increase vastly the burden on the taxpayer. Not only will their med costs go up 30%, but they lose their tax deduction when med expenses are 7.5% or more of their AGI. There is NO appeal under this system, the GOVERNMENT tells you what you SHOULD spend and that's that.

Also the ill tend to have special dietary needs, more trips to the doc/rehab/hospital--all of which will be taxed.

The list goes on. Plus they know that even under their bogus plan they are NOT excluding a tax on necessities:

"Why not just exempt necessities from the FairTax instead of providing for a prebate?

The prebate is the most equitable and most efficient way to make the FairTax progressive. If the FairTax were to exempt necessities, the tax rate would have to be 20 percent higher than the FairTax rate with a prebate."

http://www.fairtax.org/site/PageServer?p...

Right there they admitted that they're going to tax necessities in reality.

Same site, same page:

"Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple?

Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped. "

This is one of the most hateful pieces of legislation to see the light of day.

It will also result in smuggling, money flowing out to the other countries of the world for the rich boys' toys that will be bought there. You apparently do NOT remember the 1990 Luxury Tax and how that cost us working poor a buttload of money because the kids in Congress don't understand economics.

Walter Williams, economist:

"In 1990, when Congress imposed a luxury tax on yachts, private airplanes and expensive automobiles, Sen. Ted Kennedy and then-Senate Majority Leader George Mitchell crowed publicly about how the rich would finally be paying their fair share of taxes. But yacht retailers reported a 77 percent drop in sales, and boat builders laid off an estimated 25,000 workers. What happened? Kennedy and Mitchell simply assumed that the rich would behave the same way after the imposition of the luxury tax as they did before and the only difference would be more money in the government's coffers. They had a zero-elasticity vision of the world, namely that people do not respond to price changes. People always respond, and the only debatable issue is how much and over what period."

http://www.capmag.com/article.asp?ID=4097

Our current system stinks, but Steve Forbes' flat tax is far superior AND so long as we make sure the personal exemption is good AND indexed to inflation it's not so onerous as the junk we have now.

Oh and I can find many more flaws in the "FairTax" but right there from what I hit on, you can't logically support it.

As long as major tax reform is being considered why do the fair tax method and not just go with a flat tax ( which is actually more 'fair' than the fair tax plan since everyone would pay the same percentage )

I think the Fair Tax has merit, but its detractors are likely lobbyists with huge amounts of $$ that will keep this kind of legislation from seeing the light of day.

In order to reform taxes, we need to reform elections, and lobbying practices.

My problem with the fair tax is that the lower income people would not have to pay it and the middle class would have to pick up the balance.

I don't know about the fair tax.

Is it really fair? I think we should increase the tax on passive income and reduce the tax on active income (money you actually sweat for).

The problem is WE DON'T NEED IT!

If we eliminate the unconstitutional programs in government ,we can eliminate the IRS, and replace it with NOTHING!

Some estimates have shown we can save $1,500,000,000,000.00 (1.5 trillion) Per year if we cut unconstitutional programs.