Opinion of the FairTax (user search)
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  Opinion of the FairTax (search mode)
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Freedom Plan
 
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Horrible Plan
 
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Needs Work (Explain)
 
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Total Voters: 60

Author Topic: Opinion of the FairTax  (Read 2088 times)
Slander and/or Libel
Figs
Sr. Member
****
Posts: 2,338


Political Matrix
E: -6.32, S: -7.83

« on: April 27, 2015, 09:18:34 AM »

The fact that it is a progressive tax does not negate the fact that it shifts tax burden away from high-income earners and onto low-income earners. That's the issue most opponents of it have.

I think this is mostly true. It shifts burden away from high income earners onto low income earners. They claim then that the prebate for low income earners makes it progressive, which is true to some extent, but then that prebate phases out, which means that it's the middle class that winds up really getting squeezed, while the top ~1-5% of the population wins out hugely.
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Slander and/or Libel
Figs
Sr. Member
****
Posts: 2,338


Political Matrix
E: -6.32, S: -7.83

« Reply #1 on: April 27, 2015, 11:38:35 AM »

What most of you are forgetting is that the FairTax is designed to replace not only income taxes but also payroll taxes, which are highly regressive. The result is that all income brackets see a net decrease in their tax burden:



This raises doubt on the claim that the proposal would be revenue-neutral, but it dispels the criticism that it would be regressive.

"Every single person pays less in taxes" only raises doubt on the claim of revenue neutrality?
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