FeedsReplying to a comment on Why Mike Huckabee is Bad for America
The FairTax seems progressive, until you realize that the richest people in this country don't spend very much of their income. A middle-class family that barely makes it from paycheck to paycheck (a common occurrence in the Bay Area and elsewhere), would be taxed a greater percent of their income than a very rich family that invests a large portion of its income. The system also does not tax corporate income that is not eventually paid in wages and spent - a large amount of current corporate income tax.
Another fundamental problem is that the rebate amount is based on the federal poverty line, which is completely meaningless in much of the country. Some places will be far better off, because of low costs of living, while people who are below what is essentially the regional poverty level will be paying taxes, because they are technically above the federal poverty level.
Finally, there's the issue of trusting the government to handle monthly rebate checks for every single citizen and resident alien. The IRS is barely able to handle annual rebate checks. I agree that the system needs to change, but trying to force an inherently regressive tax like sales tax into a progressive tax is like trying to shove a square peg in a round hole.
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