There has been a lot of talk about the Fairtax this year. The Huckster has brought it up several times. I wasn’t sure what to think of it, but I assumed (and I was right) that it was just another way for rich folk to shelter their investments and wealth from taxes. I have always been for a flat income tax, across the board.
Under the current tax system I am curently paying about: $4,960 in taxes a year (Income, SS, Medicare, retail) under the Fairtax which is a flat retail tax I would be paying $6,210 a year. These numbers don’t include property taxes. I am assuming property taxes would still have to be paid to fund education.
You will notice that wealthy Republicans are supporting the FairTax because they spend less of their income on goods and services and put most of their income in investments then the middleclass does, in turn paying less in taxes then the middle class. A retail tax is regressive. Period. A flat income tax is the only FAIR tax that makes sense.