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H.R.25 "The Fair Tax Bill" is this going to divide the states against each other?

109th CONGRESS

1st Session

H. R. 25

To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.

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  • 9 years ago
    Favorite Answer

    Sounds to me like "Smells like Screen Names" is unaware that the states already have a form of an IRS.

    These states are already collecting state income taxes as well as sales tax.

    HR 25 Allows a monthly sales tax rebate for families meeting certain size and income requirements.

    So to say that it unfairly places more of the burden onto the poor is inaccurate as is the statement regarding investments. In reality it would insure that everyone pays income taxes. The rich purchase much more than the poor and the cost of the goods they purchase would be the more expensive items when compared to the poor.

    If a rich person can pay $77,000 for a Lexus 400 do they really care if it ends up costing them $100,000.

    The other thing to consider with a fair tax is that your paycheck will be larger since there would be no federal taxes deducted.

    @Paula

    A bit of a reach. We already have the 16th amendment that allows collecting income taxes there is nothing that states that it has to be collected in the manner in which it is collected. A fair tax or flat tax can simply be passed to change the way that our government collects them. In fact when the democrats were discussing adding the VAT it was along the exact same guidelines provided in the constiutuion

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  • Not really sure how it would "divide" the States.

    If we had H.R. 25, the Sates would be too busy with economic expansion. Perhaps they would be "divided" by competition for the massive influx of foreign companies moving to the new "tax haven" provided by H.R. 25.

    Seems the poster below has no real understanding of the FairTax. He would do well to read

    http://www.fairtax.org/site/PageServer?pagename=ab...

    The FairTax Five

    The gloves are off as critics try to pick apart the FairTax. Trouble is, it's just a replay of the same five FairTax myths:

    * "The 23% rate is misleading. It's actually 30%"

    Well, actually...

    * "It's not enforceable and evasion will be rampant"

    Well, actually...

    * "It will not be revenue neutral at 23%"

    Well, actually...

    * "The FairTax is not politically viable"

    Well, actually...

    * "The FairTax is regressive and shifts the tax burden onto lower and middle income people"

    Well, actually...

    Source(s): www.fairtax.org
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  • Paula
    Lv 6
    9 years ago

    The "Fair Tax" is one sure way to destroy our economy.

    First, you would have to enact a Constitutional Amendment to (i) prohibit an Income Tax, and (ii) define what it is and to put express limits on the rate of taxation of the “Fair Tax” (i.e., limit the maximum rate, deductibles, etc.).

    This will never happen because the Federal Government is too invested in an income tax to propose such an Amendment.

    And, without a Constitutional Amendment Congress would just enact the “Fair Tax” IN ADDITION TO the existing income tax schema, OR start re-enacting an income tax on top of the “Fair Tax” after it was implemented.

    Second, even if passed the people will curtail spending to minimize their taxes and “bank” the rest.

    This drop in spending will destroy our economy.

    Congress should focus on a method of taxation which spurs the economy, such as a Flat Tax (replacing the income tax), but you still need a Constitutional Amendment.

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  • Anonymous
    9 years ago

    So not only would the states have to invent their own IRS, to collect their state income taxes, but they'd also need to start up fifty different state agencies to search out every incident of commerce.

    All so the rich would get richer and the greater tax burden would fall on the poor.

    Ever notice your "fair tax" isn't on stocks? That it doesn't apply to buying companies or any commerce conducted between companies? That anyone with a business doesn't pay taxes on the things they purchase?

    We already have an underground economy of cash in this country. Dozens of industries are operated solely to produce untraceable cash. Check out any immigrant heavy segment, odds are there is a cash flow. If sales taxes were the only way to produce revenue, day one you'd need a huge bureaucracy to trace that flow of money.

    And who benefits? The average Joe? No

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