Quote:
Originally Posted by Inkstain82
"Fair' is inherently a judgmental term. The right tends to find that sort of idea fair.
The left believes that sales taxes take a higher percentage of income from poor people. If you have to spend spend 90% of what you make with a 20% sales tax, you will be taxed at 18%. If you make a little more and can spend only half, you are being taxed at 10%. And that's even before you start getting into the relatively higher burden (10% from a poor person hurts more than 10% from a rich person).
There is no universal definition of "fair." I'm not trying to make a political judgment on the idea of a national sales tax (I've certainly heard worse ideas), I'm simply stating a fact: It is an idea that has far more traction on the right than the left.
And no, it would not eliminate tax avoision (Simpson's reference). It would simply drive it from hiding income to black market goods.
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Our federal tax system is progressive system, with so much built in entitlement programs like social security, medicare, prescription drugs, now Health Care Reform to pay for and all Obama's stimulus package.
The more money you make the more you pay in taxes. The less money you make (less than $50K) you pay hardly any taxes. The middle class end up (>$50K but < than $250K) or about two-thirds of hard working taxpaying citizens pay for all these entitlements. While they are hidden underground economy like the illegal immigrants, whom by the way do not pay any taxes end up utilizing many, if not, all state resources like medical emergency services 24/7 which are then transferred in high premium costs each year to those who have insurance. California alone spend 5 Billion on illegal services. I'm not against illegals, but i believe in "fair tax".