Switching to a consumption tax will discourage spending while encouraging investment and savings. That will have a positive effect on the economy. If it was a retail tax, as in the only taxation was done at the register the US could export goods tax free and tax on import. Which of course would greatly improve our standing in the global market. It would tax people that are not being taxed before, illegal immigrants, tourists, and money earned from criminal activity broadening our base. The tax base would be more stable and if implemented correctly the amount of money lost on cheating would be greatly reduced.

Fairtax or not this is better than the corrupt piece of crap.

__________________
May your paradise always be green, you liberties always be full, and may the ignorance of you enemies not drive you to be pro-nuke.

"We contend that for a nation to try to tax itself
into prosperity is like a man standing in a bucket and
trying to lift himself up by the handle."-Winston Churchill

Investing helps because it gives the company more money to spend on growth, so because the spending is still taxed, the benefit will be greatly hurt.

Also, if you tax imports, it is going to make people not want to buy imports (there goes most of our cars, and most everything really), and that will hurt the gobal economy (since many nations make a lot of money by selling to us).

Actually how do you sell taxes coming in from criminal activity? Let's look at the drug trade. Do you really think that drug dealers on the corner are going to start collecting and sending in taxes on the drugs? No. The only taxes that they'll send in is when they buy food and other things they need to live, of which is taxed already, as income for the grocery store (since it allows for income and jobs that can be taxed). So the money is taxed either way, whether it be on the spending or earning end.

But you still haven't addressed that if they tax on every transaction how our economy will survive with the final tax load being around 50% for the lower and middle class? The rich will survive by just buying less (putting people out of jobs).

__________________
Set your destination with your heart, get there with your mind.

"The wisest men follow their own direction." - Euripides

Increased savings allows banks to give more in loans and people to gain more money in interest.

Investing does not only mean spending on goods. Much of it may go to research. Hiring new employees. Things that are not taxed.

It will hurt other economies, but it will help ours. Companies will start coming here, bringing jobs and money with them, for the tax benefits. Allowing them to compete better globally by stationing headquarters in America.

No of course not, but will they probably buy things with that some of that money. Ya probably. So then they will pay taxes on the money they got from illegal activity. Today they certainly do not file there illegal money for income tax so nothing comes from it. Of course illegal immigrants and tourists should be obvious.

Well with the fairtax this is handled in two ways, which is a more developed national retail tax. First the tax is 23% (not 50%) on all goods and services, which is the amount needed to pull equal income. Investing is not taxed nor is savings, education being included in that. Prebates are given to cover the cost of basic needs. I am not sure how this plan would effect the poor, but I know the fairtax plan would immensely help the poor. It would help everyone because it would greatly help the US economy and increase the real wages of everyone. This tax would increase jobs not reduce them.

__________________
May your paradise always be green, you liberties always be full, and may the ignorance of you enemies not drive you to be pro-nuke.

"We contend that for a nation to try to tax itself
into prosperity is like a man standing in a bucket and
trying to lift himself up by the handle."-Winston Churchill

That's no different then now. Oil Companies pay around 40% in Federal Taxes, cutting the tax down to 15 or 20% and basing it on consumption would cut the prices in Oil thats passed on by the Oil company to the consumer by 20 to 35% before stupid *** local, state and federal taxes you personally pay at the pump.

I.E. I paid 3.69 per gallon today when I filled my car up. Taxes levied by the Governments (Federal, State, Local) are 18 cent, 50 cent, and 6 cents for me... without these taxes gas would cost me 2.95 a gallon (thats 27% increase in prices).

So 27% in taxes directly for me on top of whats passed on by Oil companies actually costs more then the 45 or 60%.

But for it to be effected (make a difference) Consumers would have to cut back. Poor people would cut back first. Rich folks would be consuming and not be hurt. The income coming in from that would be a progressive tax on the Rich as they consume more.

Actually, I specifically said no taxes on Food, Medical, or Homes from the Federal Government. Which means Food prices would drop as no cost is passed on to the Consumer due to taxes on Companies. Same with Medical or those in the Housing business.

Consumption tax is already done, we just call it a Sales Tax. In Europe they use the VAT (Value after Taxes) as their form of it. While many believe it cuts down on Consumption it does not. People still go to the movies, people still drive, people still need to buy clothes, computers and so on.

__________________
Pioneers are walking all around singing songs about Lenin and they should be shot for it.

Handlebars

"If you are looking for the guilty, you need only look into a mirror"- V

It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office.
H. L. Mencken

come on you know you wanna play football..

Beagán agus a rá go maith.

Economic Left/Right: 3.75
Social Libertarian/Authoritarian: -2.87

VAT is an acronym for Value Added Tax.

A sales tax added to goods and services. When you sell something, you are responsible for collecting the tax and sending it in to the government.

That is correct. It stands for value added tax, not value after tax.
It is taxation at every step of the process.

__________________
May your paradise always be green, you liberties always be full, and may the ignorance of you enemies not drive you to be pro-nuke.

"We contend that for a nation to try to tax itself
into prosperity is like a man standing in a bucket and
trying to lift himself up by the handle."-Winston Churchill

It's still after the cost of production of the product and the profit you are taxed on. The "added".. is a misnomer. But then again it was a French Economist idea.

__________________
Pioneers are walking all around singing songs about Lenin and they should be shot for it.

Handlebars

"If you are looking for the guilty, you need only look into a mirror"- V

It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office.
H. L. Mencken

come on you know you wanna play football..

Beagán agus a rá go maith.

Economic Left/Right: 3.75
Social Libertarian/Authoritarian: -2.87

It's minor taxation spread out to hide the real taxation. Instead of the Consumer knowing the true rate of the tax, they only see VAT that they directly pay. As a result companies pay part of the taxation raise their prices to cover the added cost of accounting for this scam. It's a scam because in the end the consumer still pays for the whole tax via higher prices.. i.e. Our state's sales taxes.

__________________
Pioneers are walking all around singing songs about Lenin and they should be shot for it.

Handlebars

"If you are looking for the guilty, you need only look into a mirror"- V

It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office.
H. L. Mencken

come on you know you wanna play football..

Beagán agus a rá go maith.

Economic Left/Right: 3.75
Social Libertarian/Authoritarian: -2.87

How is that a scam? Everyone knows they do it. Or if they cared, they would know.

I'm sorry, did I say it was not after?

Yes it is a non-transparent taxation. Yet I would prefer that over what we currently have in place.

__________________
May your paradise always be green, you liberties always be full, and may the ignorance of you enemies not drive you to be pro-nuke.

"We contend that for a nation to try to tax itself
into prosperity is like a man standing in a bucket and
trying to lift himself up by the handle."-Winston Churchill