Quote Originally Posted by Koga No Goshi View Post
I fail to see then how this would work out to be different than a graduated income tax in actual effect, except that rich people would be paying a lot less money. It's still graduated if your'e going to reimburse most of what people living check to check spend money buying and pay sales tax on. In fact, this sounds like a recipe for almost no tax revenue. So I'm back to what I said before, I see no "fair tax" proposals that wouldn't decimate tax revenue. I'd like to get into where we are supposed to make up that in terms of cutting spending. THe argument never seems to go that far.
It's designed to be revenue neutral. Though I'm all for decreasing federal spending where possible.

All "embedded" taxes would be knocked off, leaving just the sales tax a point of sale. People spending for big ticket items would be taxed the most (e.g. I buy a 20k car and shell out 24.6k; scion of wealth buys his electric roadster for 109k and pays 134+k; we both get the same 1k check each month from the government) No item/service would be exempt from taxation save for illegal items/services. Revenue would also be enhanced by tapping into the monies that currently go untaxed in the gray market or those monies used by criminals to make legitimate purchases. Moreover, it would serve as a disincentive to illegal immigration since they'd end up paying taxes without receiving services (which is the reverse of current practice in some instances).

As to cutting spending, I agree it needs to be done. Slowing growth across the board should be doable, though actual "cuts" would be far mor difficult politically. As a conservative, I can think of several programs/portions of government that could be cut away entirely -- though i suspect that some would disagree.