Trumps Tax Plan- will you fair better or worse?

[Eagle]

I believe when "fair tax" is used, it's not taxes that are more "fair", but it's the consumption tax model explained in the link I am providing.

https://en.wikipedia.org/wiki/FairTax

I think the fair tax model has its pros and cons. I don't think it's the magic bullet but who knows without an experiment. They should pilot this model in a state and let us know how well it works.

Transitioning our current tax system to fair tax sounds difficult and could crash the economy in the short term.

"As defined in the proposed legislation, the tax rate is 23% for the first year."

So a federal sales tax of 23% on everything we buy? Then progressive tax afterwards?

What about the Monthly tax rebate?

What about state taxes?

[GoodSteward]

One thing I read about fair tax is that it would help increase savings because people wouldn't be as inclined to buy so much stuff. With our economy so heavily dependent on spending anything to decrease that is a bad thing it seems. Also, from what I was told it wouldn't be a flat tax on everything, just most consumer goods and bigger purchases. Things like food would be much lower.

[Outdoorsygal]

One thing I read about fair tax is that it would help increase savings because people wouldn't be as inclined to buy so much stuff. With our economy so heavily dependent on spending anything to decrease that is a bad thing it seems. Also, from what I was told it wouldn't be a flat tax on everything, just most consumer goods and bigger purchases. Things like food would be much lower.

If basic necessities weren't taxed, that would be the way to go. Food Shelter, medical care.
Other purchases taxed alot more to make up for it. Especially the sin related ones-cigarettes, liquor, marijuana, strip clubs, x rated movies, etc..
Those that work hard at 40 hrs a week, well they have the right to have their basic necessities met. We live in a heck of a world where that is difficult. All that labor to not even be able to have adequate food (organic whole food) shelter and medical care. What a world we live in. So glad this is temporary.

[GoodSteward]

So glad this is temporary.

[siggy_freud]

How do the states do it without sales tax?

Income and property tax

[Nutria]

How do the states do it without sales tax?

Property taxes.

[Nutria]

Shucks I read 3 websites which said they same thing but all omitted the increased deduction.

That's called "stupid/lazy/partisan writers copying other writers' work instead of doing their own research."

[clatoden99]

It is regressive. Priorities warped. The estate tax affects about 2% of the population. The corporate tax cut is more defensible in my opinion. Overall, I give the plan a C.

[LivingAlmostLarge]

estate taxes and taxes for wealthy are all the personal taxes they are cutting. I'm curious though if the taxes on corporations actually creates jobs when we are raising the rates on borrowing by the fed? So it's more expensive for companies to do buybacks and other expenditures.

[Gwenstacy]

Trump

Trumps tax plan is likely to backfire i the coming year, his promises are overly ambitious.

[Nutria]

Trumps tax plan is likely to backfire i the coming year, his promises are overly ambitious.

When have a politician's promises not been overly ambitious?