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[+] ARROW ABSTRACT OF NEW YORK, INC. - Scott Perry/PA (5 replies)
2/5/2009 11:57:53 AM (3595 views)

[+] nXt Generation Title Services, LLC - Dan Zook/NY (11 replies)
2/5/2009 8:59:26 AM (3769 views)

[+] mortgage fraud - Sheila Sten/PA (4 replies)
2/4/2009 3:48:02 PM (3577 views)

[-] Off the beaten path - AbstractorWatchdog com/NY (34 replies)
2/3/2009 10:36:52 PM (3472 views)
Re: Off the beaten path - STEVE MEINECKE/TN
2/3/2009 11:31:49 PM (4261 views)
Re: Off the beaten path - Patrick Scott/IL
2/4/2009 12:01:44 AM (4145 views)
Re: Off the beaten path - Scott Perry/PA
2/4/2009 12:55:17 AM (4250 views)
Re: Off the beaten path - Robert Franco/OH
2/4/2009 10:42:36 AM (4134 views)
Re: Off the beaten path - Kevin Ahern/CT
2/4/2009 10:52:16 AM (4181 views)
Re: Off the beaten path - Scott Perry/PA
2/4/2009 11:18:23 AM (4028 views)
Re: Off the beaten path - Clanci Nelson/OH
2/5/2009 4:48:33 PM (4108 views)
Re: Off the beaten path - Scott Perry/PA
2/5/2009 7:43:44 PM (6718 views)
Re: Off the beaten path - Robert Franco/OH
2/6/2009 10:09:45 AM (3882 views)
Re: Off the beaten path - Scott Perry/PA
2/6/2009 11:53:54 AM (3952 views)
Re: Off the beaten path - Robert Franco/OH
2/6/2009 12:44:49 PM (3849 views)

I have looked into it and I don't think it is viable... there are too many problems.

  1. the middle class mostly spends more than they make.  We have a negative savings rate in this country.  At 30%, they would all lose out on the benefits of the graduated income tax, where the rate starts at only 10%.  Thus, most people who make between $30,000 and $200,000 would pay significantly higher taxes.  They wouldn't just pay tax on what they make, they would also pay tax on what they borrow and spend!
  2. There would certainly have to be exceptions for major purchases like homes - can you imagine what a 30% tax would do the housing market?
  3. Your crime analogy is flawed.... we would actually have more crime because those drug dealers you mention would diversify into stolen goods to be sold on the black market - with no taxes!  Just consider the bootleg cigarette market that sprung up after the cigarette tax was implemented.  And, what about all of the sales through E-bay and other online vendors - do you think they would charge a 30% tax?  Policing that would be just as burdensome as the current income tax - maybe more so.  Employers are much better at collecting income taxes than all of the vendors would be collecting sales tax.
  4. What about all of the people who have invested in Roth IRAs? They have already paid the tax on their retirement savings - they would be taxed AGAIN when they draw it out and spend it.  How is that for rewarding those that have planned for their retirement?  There is a similar problem with those who have invested in tax free muni-bonds and the like.
  5. The rich could still escape much of their tax burden by saving more - they are the only group that currently saves anything as it is.  And, if people save more, to cut their tax burden, the economy suffers.  As people spend less, the rate of the Fair Tax would be insufficient and it would have to go up - creating more of a burden on the middle class.  Those selling luxury items would be the hardest hit and many of the companies that make luxury goods would see sales decline and they would have to charge more for their products - making them even less appealing.  And, the middle class workers employed by these industries would suffer lob losses.  It would be a devastating cycle.
  6. How would the government function during economic recessions when unemployment rises and people spend less?  The Fair Tax would be much more volatile and it would make creating a balanced budget even more difficult. 

The Fair Tax is an appealing gimmick, but it is not really well thought out.  If you tried to make the Fair Tax workable and really fair - it would be just as complicated as the current income tax and it would still require a huge bureaucracy to police.

Sorry... I'm not a fan of it and I don't think we will ever see it.  If we tried it, I think we would end up trying to phase it in along side the income tax and we would end up having both.  We would never really be able to escape the income tax completely and we would just end up with two complicated tax systems.

Best,
Robert A. Franco
SOURCE OF TITLE

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Re: Off the beaten path - Scott Perry/PA
2/6/2009 1:51:09 PM (3845 views)
Still makes no sense.... - Robert Franco/OH
2/9/2009 1:09:11 PM (4066 views)
Re: Still makes no sense.... - Scott Perry/PA
2/10/2009 3:26:30 AM (3840 views)
Re: Still makes no sense.... - Robert Franco/OH
2/10/2009 9:59:16 AM (3891 views)
Re: Still makes no sense.... - Debbie Thibodeaux/LA
2/11/2009 1:07:54 PM (3830 views)
Re: Still makes no sense.... - Robert Franco/OH
2/11/2009 1:43:23 PM (3810 views)
Re: Still makes no sense.... - Kevin Ahern/CT
2/11/2009 4:48:23 PM (3818 views)
Re: Still makes no sense.... - Robert Franco/OH
2/12/2009 12:46:38 AM (3702 views)
Re: Still makes no sense.... - Douglas Gallant/OH
2/11/2009 5:06:23 PM (3805 views)
As I Was Saying... - Scott Perry/PA
2/16/2009 12:14:21 AM (3808 views)
Re: As I Was Saying... - Robert Franco/OH
2/16/2009 11:56:29 AM (3896 views)
Re: Commercial Activity Tax... - Robert Franco/OH
2/16/2009 3:04:27 PM (6487 views)
Re: Off the beaten path - Clanci Nelson/OH
2/6/2009 4:45:51 PM (3936 views)
Re: Off the beaten path - Kevin Ahern/CT
2/6/2009 6:17:30 AM (3902 views)
Re: Off the beaten path - Robert Franco/OH
2/6/2009 10:03:24 AM (3898 views)
Re: Off the beaten path - Kevin Ahern/CT
2/4/2009 10:47:54 AM (4046 views)
Re: Off the beaten path - Robert Franco/OH
2/4/2009 11:06:18 AM (3843 views)
Re: Off the beaten path - Kevin Ahern/CT
2/4/2009 11:10:33 AM (3809 views)
Re: Off the beaten path - Scott Perry/PA
2/4/2009 11:31:26 AM (3892 views)
Re: Off the beaten path - Kevin Ahern/CT
2/4/2009 11:59:28 AM (3918 views)
Re: Off the beaten path - Barbara Bennett/IN
2/4/2009 3:28:50 PM (3723 views)
Re: Off the beaten path - Kevin Ahern/CT
2/4/2009 11:21:39 AM (3818 views)
Re: Off the beaten path - Clanci Nelson/OH
2/5/2009 4:25:01 PM (4035 views)

[+] reporting non-paying title companies to the underwriters - Michael Lanin/KY (7 replies)
2/3/2009 1:20:18 PM (3360 views)




Title Assurance & Indemnity Corp. of NA Cleveland, OH - MIchael Lanin/KY
2/3/2009 1:01:36 PM (2597 views)

[+] The Law Firm of Crystal Lowery - Edward Huguenin/SC (4 replies)
2/1/2009 8:20:52 AM (3737 views)

[+] What is considered slow pay? - no name/MI (2 replies)
1/30/2009 12:50:38 PM (3335 views)

[+] Probate Question - Helene /GA (7 replies)
1/29/2009 11:50:27 PM (3198 views)

[+] Preview of Coming Attractions? - Scott Perry/PA (11 replies)
1/29/2009 10:53:59 PM (5008 views)

[+] The Bankruptcy Club - AbstractorWatchdog com/NY (8 replies)
1/29/2009 2:56:14 PM (3566 views)

[+] MONEY OWED - quinn cioffi/PA (2 replies)
1/28/2009 2:38:15 PM (3583 views)

New Real Estate Numbers Are Out - AbstractorWatchdog com/NY
1/28/2009 2:25:36 PM (4386 views)

[+] Snow Day! - Robert Franco/OH (13 replies)
1/28/2009 12:39:37 PM (3173 views)

[+] NALTEA - AbstractorWatchdog com/NY (2 replies)
1/28/2009 12:13:09 PM (3019 views)


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