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Originally Posted by mkfffe
Will the prebate cover the costs of tax on all necesities (clothes and food) every time or does it expire over a course of the month (and renews at the beginning of each month)? Because if they expire, how do you ensure it will be enough to get them through the month.
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They should get a check each month to cover the cost of necessities based on family size. That is just to cover tax costs not the actual cost of necessities.
Quote:
Originally Posted by mkfffe
So the current system has problems, all systems have problems. But applying a new system would be un-cost effective. It would be better to just reform our current tax system.
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We have been trying to reform the current system for a long time, how do you think it got so large. Transition costs to this system would be minimal and negligible.
Quote:
Originally Posted by mkfffe
And the rise in wages will raise prices. Basic laws of inflation. Because more money is going to flood the market (spendable income) the value of the dollar will drop.
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Real wages account for inflation. Thus why I said real wages will increase and not just wages will increase. The increase in wages will be higher. An increase in real wages means that wages are predicted to rise more than inflation. The people will have more buying power. It could very well turn us from the crisis our economy is facing. A strong economy is definitely a good thing.
Quote:
Originally Posted by mkfffe
2 points for bringing in a study. -1 for not giving either the title or link to the study, so 1 point for you.
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Sorry most of what I am using here is from books, not the internet.
Here is the title and link from the book fairtax: the truth.
Comparing average and marginal tax rates under the fairtax and the current system of federal taxation.
http://people.bu.edu/kotlikoff/Compa...2010-17-06.pdf
I don't know, I can not get this link to work right now. Tell me if it works for you.
Quote:
Originally Posted by mkfffe
What it encourages and what would happen are two different things. People will continue to buy crap as long as they can afford it. So the initial rise in prices (from the tax levied on them) will be offset by the "pay raise" from the the end of income tax.
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Isn't it better to encourage savings and investment instead of spending. This encouragement will result in some increase, the question is what amount. Either way some increase it better than none. It will be an improvement.
Quote:
Originally Posted by mkfffe
So we need to reform social security, that's been important for years. I'll have to re-read the book, cause I didn't get excited about the system when I read it last time (so I read it half-heartedly during finals week.
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Well read both of them. I would say the second is a bit more detailed. More studies and economic work.