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Originally Posted by the_wizz
Thats why you need to help promote the Fair Tax
Believe it or not, it is a better way of doing things... |
It's fair to those that horde their money. sales taxes are a regressive tax and penalize the poor more than anyone else.
consider two scenarios.
An individual (no wife, no kids) who earns $80,000. And spends $30000 a year. If he were taxed on just the 30 at let's say 20%. that amounts to 6,000 or 7.5 % of his income.
Versus a single family with one kid whose sole wage earner earns say 36,000 a year. Spends 30,000 on their living expenses. Has the same 6,000 in taxes. But ends up being 16.6% of his gross income. it's not fair, it's just different.
There are benefits to it. It's easy for those with money to accumulate wealth and pass it down through the generations. It's an unfortunate part of the current system that people are penalized for earning and suceeding.
However, you also don't want to create a system which at the lower rungs is going to take food off of the table of a family.