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Spin Zone / Re: Can someone explain how anyone could endorse socialism?
« on: April 22, 2017, 03:10:03 PM »And everyone would be taxed. Right now a huge portion (around 50%) pay no income tax.
Not really. I used to be for the fair tax too but after I read more about it, I'm not sure anymore. Those under the "poverty line" would receive checks to offset the tax they paid on food and other essentials of life. Actually, we'll all get checks to offset what we spent on essentials. At least this is the plan as I read it on Wiki. This amounts to creating a huge new entitlement distribution and I'm wondering what unforeseen consequences that could have. I can see the drug addict mom using her check to buy drugs and buying less of the more expensive (because of the added tax) food for her kids. Everyone would pay the tax at the point of purchase, but the effective rate for many would still be zero.
As opposed to Canada's consumption tax. Canada exempts essential food from the GST, but makes the seller responsible for collecting or not, and so they need to keep up with what is essential and what isn't. But that's not simple. Not all foods are essential for life. Snacks are not for example. But basics, such as raw ingredients sold to households are. But ingredients sold to a snack maker are not if they are being made into snack foods. Cooking oil is essential if a housewife buys it. It is not if it is used to make Cheeto's. A meal bought at a restaurant is not essential; it must be considered luxury, and so it is taxed. But the same meal made at home from scratch would be considered exempt when you buy the meat and potatoes to make it.
All of this seems a mind boggling nightmare, as bad or worse than our IRS. As an auditor I was trying to find out whether the GST charged on a shipment of soybean oil in Canada was legitimate or not, I never could work it out. I realize the proposed Fair Tax would not work that same way, but it got me thinking that nevertheless it could end up just as bad or worse than what we have now - hard as that is to believe.