(09-29-2020, 06:12 PM)jagibelieve Wrote:

(09-29-2020, 05:40 PM)TheO-LineMatters Wrote: How is a flat tax unfair? I don't get it. Everyone is paying the same percentage of their income, so there should be no problem. I just don't get the argument at all. It's a level playing field. 

Thanks for the info about the United Way. I'll check that out next year. I wasn't aware they offered such services.

A flat tax is based on income.  The Fair Tax is based on consumption.  The difference is with a "flat tax" you are basically penalizing someone for making a good salary even if they choose to save their money rather than spend it.  It also only applies to people actually earning an income.

The Fair Tax on the other hand taxes people on what they spend, not what they earn.  It also applies to those not earning income.  Think the "underground economy" such as illegal aliens working for cash, prostitutes, drug dealers, etc.  Any time anyone buys something new they are taxed.  The rate would be the same for ALL people, not just those that actually earn an income.  Go buy a new car?  You get taxed X% whether it's a $20,000.00 car or a $100,000.00 car.

That's a very brief explanation of it and the basic idea of it.

How do you in any way, equate this with a penalty? It's not penalizing anyone if we all pay the same percentage. It's a level playing field. Everyone would be paying the same percentage, so there can't be any penalties.

Not everyone who doesn't earn an income is an illegal alien, a prostitute or a drug dealer. What about people who are legitimately disabled and can't work? What about injured war vets who come back from combat severely disabled or dealing with crippling PTSD? They barely have enough income to get by. I know a few. It's sad. They come back and are basically thrown away. One guy I know spends most of his income on the medication he needs that the VA won't fully cover.

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