Will never happen because the politicians lose one of their biggest planks to garner votes. Either the Dems screaming taxing the rich to garner votes or the Reps screaming tax cuts to garner votes.

i don't know that I disagree, but if I can buy a 2009 car ALREADY discounted by 15% why would I buy the 2010. A non-new house is going to cost 15% less automatically than the same house build new, why would I buy a new house.

 

clothing, maybe a different story but houses and cars . . .

 

There would still be tax built on repurchasing of items, correct?

 

Would the IRS began prosecuting those that do not pay taxes on the yard sale items they sold?

I will ask the question AGAIN that has been overlooked . . . why would people buy new things, like houses and cars? The strain of those lost jobs in the housing and automotive industry would be tremendous. And why would people by next textiles, like clothing. The demand for new stuff would go down, tremendously.

 

Where do corporations fit into this? Part of the tax plan now incentivizes job creation . . . does that just go away.

 

I don't see how it is any different than it is now. When I am buying a car, the taxes I will pay on it plays no role in me choosing the car?

i don't know that I disagree, but if I can buy a 2009 car ALREADY discounted by 15% why would I buy the 2010. A non-new house is going to cost 15% less automatically than the same house build new, why would I buy a new house.

 

clothing, maybe a different story but houses and cars . . .

Ace, for you, me and anyone else that has questions about the fair tax this book may be what we all need to answer our questions.

 

The FairTax Solution: Financial Justice for All Americans

 

I've already read info from the site SKIPIG provided but have been advised by a friend to read this book. If you don't buy it, perhaps after I buy and read it I can send to you (or others) to read.

Will never happen because the politicians lose one of their biggest planks to garner votes. Either the Dems screaming taxing the rich to garner votes or the Reps screaming tax cuts to garner votes.

I see this as the biggest obstacle. Both the Dems and Republicans will do everything they can to keep it from happening.

i don't know that I disagree, but if I can buy a 2009 car ALREADY discounted by 15% why would I buy the 2010. A non-new house is going to cost 15% less automatically than the same house build new, why would I buy a new house.

 

clothing, maybe a different story but houses and cars . . .

 

If it works like most things end up working the price of non-new houses will rise to meet what a new house with taxes is. Right or wrong, whatever the market will bare typically comes into play.

 

Also, there are several states that don't have a sales tax on used cars, but new cars still sell in those states.

There would still be tax built on repurchasing of items, correct?

 

Would the IRS began prosecuting those that do not pay taxes on the yard sale items they sold?

 

No taxes on resale of items, taxes are only paid when purchased new.

i don't know that I disagree, but if I can buy a 2009 car ALREADY discounted by 15% why would I buy the 2010. A non-new house is going to cost 15% less automatically than the same house build new, why would I buy a new house.

 

clothing, maybe a different story but houses and cars . . .

 

 

Why do people buy new now?

 

Because it comes with the color, options, style, etc. they want.

I see this as the biggest obstacle. Both the Dems and Republicans will do everything they can to keep it from happening.

 

It will take something drastic to get sitting politicians to go for it. Something drastic as 80% of registered voters voting, maybe?

Why do people buy new now?

 

Because it comes with the color, options, style, etc. they want.

 

The fair tax add 15% to the price it is now. I, for one, am about to trade in a 2003 Odyssey for somehting with better mileage. No way am I getting a new car and would not even dream of it were the price increased by 15% for taxes.

If the "FAIR" tax were in place at a rate of, oh lets say, 15% and you purchased a $200,000 home, would you mind paying $30,000 in sales tax on that purchase OR would you argue that homes should be exempt from the "FAIR" tax? If you are required to put 20% down (as most banks require), must you now come up with $70,000 for the down payment to include the tax? Or, would the tax be paid with the monthly mortgage?

With the FairTax, mortgage interest rates fall by about 25 percent (about 1.75 points) as bank overhead falls; this is a huge savings for consumers. For example, on a $150,000, thirty-year home mortgage at an interest rate of 7.00 percent, the monthly mortgage payment is $999.12 for principal and interest. On that same mortgage at a 5.25 percent interest rate, the monthly payment is $830.01. Over 30 years, the 1.75-percent decrease in interest rates in this instance results in a $60,879 cost savings to the consumer. Finally, first-time buyers save for that down payment much faster, as savings are not taxed.

 

Under the FairTax, home ownership is a possibility for many who have never had that option under the income tax system. Lower interest rates, the repeal of the income tax, the repeal of all payroll taxes, and the prebate mean that people have more money to spend and have an increased opportunity to become homeowners.

 

This is from Fairtax.org

Here's some Frequently Asked Questions about the FairTax from Fairtax.org for those of you that haven't checked it out yet.

With the FairTax, mortgage interest rates fall by about 25 percent (about 1.75 points) as bank overhead falls; this is a huge savings for consumers. For example, on a $150,000, thirty-year home mortgage at an interest rate of 7.00 percent, the monthly mortgage payment is $999.12 for principal and interest. On that same mortgage at a 5.25 percent interest rate, the monthly payment is $830.01. Over 30 years, the 1.75-percent decrease in interest rates in this instance results in a $60,879 cost savings to the consumer. Finally, first-time buyers save for that down payment much faster, as savings are not taxed.

 

Under the FairTax, home ownership is a possibility for many who have never had that option under the income tax system. Lower interest rates, the repeal of the income tax, the repeal of all payroll taxes, and the prebate mean that people have more money to spend and have an increased opportunity to become homeowners.

 

This is from Fairtax.org

 

Who says? Why would the banks drop interest rates b/c their overhead falls?

I like the idea of no federal income tax but a national sales tax. If I buy a $1500 used car, I pay a flat tax on that. If I have the money to buy a $150,000 car, I pay the same percentage tax on that. Seems fair to me. People will use their dollars to consume and the more they have, the more they will spend, generating tax dollars. Seems fair to me.

 

Actually my understanding from listening to one of the authors of the plan, you WOULD NOT pay taxes on a used car....just on new ones.

All valid Social Security cardholders who are U.S. residents receive a monthly prebate equivalent to the FairTax paid on essential goods and services, also known as the poverty level expenditures. The prebate is paid in advance, in equal installments each month. The size of the prebate is determined by the Department of Health & Human Services’ poverty level guideline multiplied by the tax rate. This is a well-accepted, long-used poverty-level calculation that includes food, clothing, shelter, transportation, medical care, etc.

 

Illegals still get to pay the tax but don't get the pre-bate!!!! :banana:

Two parent two child family would receive $6700 back to offset taxes on first $29,000 of spending each year. :thumb:

 

Link to Pre-Bate Charts