/r/fairtax
The FairTax is a taxation system that would eliminate all federal income taxes (including the alternative minimum tax, corporate income taxes, and capital gains taxes), payroll taxes (including Social Security and Medicare taxes), gift taxes, and estate taxes, replacing them with a single consumption tax on retail sales.
The FairTax includes a monthly rebate (called a “Prebate”) so that all spending up to the poverty level is tax-free, thereby making the FairTax progressive.
The FAIRtax is a tax reform proposal written by Americans for Fair Taxation for the federal government of the United States.
The FAIRtax would replace all federal income taxes, payroll taxes, gift taxes, and estate taxes with a single broad national consumption tax on retail sales.
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/r/fairtax
Something like this;
Taxpayer Bill of Rights
Preamble
We, the taxpayers of the United States, in order to establish a fair and transparent tax system, ensure economic growth, and protect the rights of all citizens, hereby adopt the following Bill of Rights under the FairTax plan.
Article I: Right to Keep Your Entire Paycheck • Every taxpayer has the right to receive 100% of their earnings without any federal income tax deductions.
Article II: Right to a Simple Tax System • Every taxpayer has the right to a simplified tax system, free from the complexities of filing federal income tax returns.
Article III: Right to Fairness and Transparency • Every taxpayer has the right to a transparent tax system where taxes are paid based on consumption rather than income, ensuring fairness and reducing tax evasion.
Article IV: Right to a Prebate • Every taxpayer has the right to receive a monthly prebate to cover taxes on essential goods and services up to the poverty level, ensuring that basic needs are met without additional tax burden.
Article V: Right to Abolish the IRS • Every taxpayer has the right to a tax system that does not require the existence of the Internal Revenue Service (IRS), thereby eliminating the need for federal income tax enforcement.
Article VI: Right to Fund Social Security and Medicare • Every taxpayer has the right to ensure that Social Security and Medicare are funded through the national sales tax, guaranteeing the stability and continuity of these essential programs.
Article VII: Right to Economic Growth • Every taxpayer has the right to a tax system that promotes economic growth by encouraging savings, investment, and consumption.
Article VIII: Right to Privacy • Every taxpayer has the right to privacy, free from intrusive audits and investigations related to federal income taxes.
Article IX: Right to a Non-Political Tax System • Every taxpayer has the right to a tax system that is free from political manipulation and influence, ensuring that tax policies are implemented fairly and impartially for the benefit of all citizens.
Article X: Right to Untaxed Investments, Savings, and Business Activities • Every taxpayer has the right to ensure that profits from investments, savings, and business activities are not subject to federal taxation, promoting financial growth and innovation.
Trying to figure this out I will ask questions here as I don't know where else to ask.
Are purchases of pre-owned items taxed, such as used cars, anything sold at a flea market Subject to Fair Tax ?
Electric utility and phone service, NetFlix all nontaxable?
And this leaves services untaxed? so no tax on medical service?
A plumber charges $300 labor and $500 for parts, only the $500 is taxed?
Doctor services tax free?
Dr sells me a $14,000 artificial hip and $10,000 for related surgery, is any of that tax free?
FairTax.org website, only glanced at it , but didn't see anything about estate taxes, any comment?
My American jeweler takes me on his yacht into international waters from a US port and sells me $10,000 jewelry, am I paying fairtax?
Any tax on stocks and bonds?
Any tax if I buy rights to a song or patent or other intangible.
Playing chips purchased in a casino are taxed?
I buy a Bible, that is taxed, but if I buy an on-line Bible, or a pdf, that is tax-free?
Will there be cruise ship sized shopping malls to circumvent taxes, same as riverboat casinos circumvent anti-casino laws.
Anyone pushing for this in congress?
edit typos
It was nice to see the Fairfax the first question when at the local election poll.
My wife and I have normal jobs with normal W2s. Despite being married, we withhold at the single rate. We had our employers withhold extra because we owed taxes last year.
This year, we somehow still didn’t manage to withhold enough, so we are having to pay an underpayment penalty.
We do everything that is asked of us, I t’s not enough. We do more, it’s not enough. We do extra, it’s not enough.
These are the things that cause us to want to stop being productive members of society.
This subject came up briefly yesterday while I was communicating with a friend. He says that the FairTax places an unequal burden on lower income individuals as they lose a greater percentage of their total purchasing power. It seems natural and fair for me that this be the case as an individuals purchasing power ought be absolutely irrelevant to the price of public services. Under the fair tax, individuals who live a more luxurious lifestyle will already pay more in taxes, but it removes market friction for trading and investment. Under the current system, people who make more are penalized regardless of their monetary decisions, and their ability to engage with the market is hindered by taxes on their gains. The benefit of the FairTax is clear to me. What other arguments and perspectives do I need to consider?
I’m new to the fair tax idea and I love it. However, it seems to me that a problem could be the increase of “ill gotten gains” such as drug money or illegal weapons sales and the like. How would/does the fair tax address this?
Huge fan of the Fairtax option and am trying to support it where ever I can. However, I think I might have found a problem, and can’t think of a solution.
Is contract labor taxed? They don’t produce a product and are more fill-in for employee labor. If they are taxed as a service industry, then that cost is imbedded into the product, or if it’s not, that would be an exception. Right? Either way this would defeat the purpose of the FairTax. Can someone help me understand this?