Can the Fair tax ever be passed and enacted?
I’m a proponent of the Fair tax but I do not believe it’s politically or economically practical to replace our entire taxes on net incomes with a sales tax.
It would be financially imprudent and politically less feasible and may be impossible to pass a bill transferring our entire federal taxes upon net incomes to a sales tax in a single step. I’m continuously told that Fair tax proponents would not support a fair tax bill to be passed and enacted as other than to be accomplished in a single step; the consequences of retaining such a position is the Fair tax bill will never be attempted on a federal level.
I believe the first incremental step to enact the Fair tax should be to replace all of our FICA payroll tax funding for Medicare and half of FICA’s funding for Social Security with a federal sales tax.
[FICA is our most regressive federal tax; the 15.3% FICA taxes upon payrolls can be reduced by 9.1% of payroll and replaced by a 4.55% general sales tax. If USA payrolls subject to FICA do not exceed 50% of transactions subject to the sales tax this would somewhat reduce the net taxes paid by those dependent upon wage and salary incomes and thus there’d be no need for additional provisions to compensate the working poor.
The increase of tax revenues would be proportionally related to the extent that the amounts of transactions subject to the sales tax exceed double payroll amounts subject to the FICA tax. Eliminating only half of FICA’s social security funding conceptionally retains our association of retirement benefits relationship to individual’s life time wages and salaries].
After the major portion of our FICA taxes has been substantially replaced with a federal sales tax, the following incremental steps should replace portions of individual and corporate taxes upon net incomes with increases of the federal sales taxes. These increases of sales taxes would require some compensating provisions for persons of lesser incomes.
Steps following the initial step (that substantially reduced FICA and enacted the federal sales tax), for the enactment of the Fair tax should simultaneously:
(1) Reduce individual and corporate regular income tax rates upon all income brackets by a uniform portion of net taxable incomes.
(2) Increase the federal general sales tax rate.
(3) Increase the provisions to compensate low income purchasers for the increased sales taxes.
I expect that after one of the incremental steps, we’d have a federal sales tax approaching an unacceptable tax rate; but if I’m wrong, federal income taxes could be entirely eliminated.
Respectfully, Supposn
I’m a proponent of the Fair tax but I do not believe it’s politically or economically practical to replace our entire taxes on net incomes with a sales tax.
It would be financially imprudent and politically less feasible and may be impossible to pass a bill transferring our entire federal taxes upon net incomes to a sales tax in a single step. I’m continuously told that Fair tax proponents would not support a fair tax bill to be passed and enacted as other than to be accomplished in a single step; the consequences of retaining such a position is the Fair tax bill will never be attempted on a federal level.
I believe the first incremental step to enact the Fair tax should be to replace all of our FICA payroll tax funding for Medicare and half of FICA’s funding for Social Security with a federal sales tax.
[FICA is our most regressive federal tax; the 15.3% FICA taxes upon payrolls can be reduced by 9.1% of payroll and replaced by a 4.55% general sales tax. If USA payrolls subject to FICA do not exceed 50% of transactions subject to the sales tax this would somewhat reduce the net taxes paid by those dependent upon wage and salary incomes and thus there’d be no need for additional provisions to compensate the working poor.
The increase of tax revenues would be proportionally related to the extent that the amounts of transactions subject to the sales tax exceed double payroll amounts subject to the FICA tax. Eliminating only half of FICA’s social security funding conceptionally retains our association of retirement benefits relationship to individual’s life time wages and salaries].
After the major portion of our FICA taxes has been substantially replaced with a federal sales tax, the following incremental steps should replace portions of individual and corporate taxes upon net incomes with increases of the federal sales taxes. These increases of sales taxes would require some compensating provisions for persons of lesser incomes.
Steps following the initial step (that substantially reduced FICA and enacted the federal sales tax), for the enactment of the Fair tax should simultaneously:
(1) Reduce individual and corporate regular income tax rates upon all income brackets by a uniform portion of net taxable incomes.
(2) Increase the federal general sales tax rate.
(3) Increase the provisions to compensate low income purchasers for the increased sales taxes.
I expect that after one of the incremental steps, we’d have a federal sales tax approaching an unacceptable tax rate; but if I’m wrong, federal income taxes could be entirely eliminated.
Respectfully, Supposn