Talk:Fair Tax Act of 2009

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I do belive that the taxcodes need abolished . I don't think that a 23% sales tax is not appropriate. We need to look at Thriftier spending in all areas. Then the government (We citizens) should be able to function on a 10% Flat ncome tax, no outs for anyone or business.


I agree with the point of the existing tax code needing to be abolished, and that the federal government needs to be limited to the functions enumerated to the federal government by the constitution. but i see them as 2 different issues that both need addressing.
All income based taxes have some major problems. I disagree with with flat income tax for these reasons.

1. It is regressive meaning that flat tax on income represents a bigger burden to the poor as the poor spend nearly all their income to live while the cost of flat taxes on businesses is just a cost of doing business that consumers end up paying.

2. Even investors need to make a return greater then inflation after taxes are payed at a rate pthat refelcts the risk. so again  those taxes inefect are really only passed onto consumers. 

3. Flat income tax cost are still embedded in production, cascading at each step of production, burdening American products keeping them from their full potential to compete fairly tax wise with imports in the domestic markets, or compete fairly with other products in international markets.

Tax Code is not Perfect

We (as a nation) have found out in the last year that sometimes Change, just for the sake of Change is not the best option.  Neither is abolishing the IRS.  I agree that some of the tax codes need to be changed but abolishment and a consumer tax is not the way to do it.  Look at the last 9 months....I think we (as a nation) have proven that we can stop consuming if we need to.  Then how will the "poor" people live?