Re:Fairtax (Score 1)

Let's see if this make it clearer. My first comment was not an argument against taxes but was in response to your statement:

Only problem is that percentage of poor people's income spent on buying goods (necessary goods like food, clothing, etc.) is MUCH higher than rich people's income spent on buying goods (even when you factor in $35 million for Gulf Stream Jet). Why should poor people pay more (in relative scale) than rich?

I suggested two ways to alleviate that situation, one of which was to index all items and charge people by a percentage of what they make. So if a person making $100,000/yr pays $30,000 for a car, then a person making $10,000 would be charged only $3,000 for the same car.

Somehow, you found that to be an argument against taxation and called it idiotic.

You then proceeded to talk about taxation again, and stated:

Do you think the guy who is making the minimum wage and barely making by will be happy to know that he paid exactly same amount of money (as the rich people)...

The second part of my first paragraph was to comment on that position (If all were taxed at a flat rate of, say, 10%, then one making $10,000 would pay $1,000 and one making $100,000 would pay $10,000), and I can see that I could have made the connection clearer.

Perhaps the point you were trying to make in your first posting was that the FairTax would be more burdensome on the poor than the rich since it is levied on purchases. The FairTax supporters claim this will not be the case, for a number of reasons. See http://www.fairtaxvolunteer.org/smart/sketch.html/ .

Under a rigid flat tax, the poor won't pay as much as the rich. Under our current, highly flawed, system the poor don't pay as much as the rich, but many rich people pay less than most of the middle class. The flat tax could prove to have the same flaws if all the current loopholes were carried over.

I am not yet convinced that the FairTax proposal will work, but as it is written, overall the poor will not pay the same as the rich. For some interesting views against the FairTax, see http://economics.about.com/cs/taxpolicy/a/fairtax. htm/ and http://www.mises.org/story/1814/

No matter what system of taxation or what system of government is established, there will be those who take advantage of the system to the detriment of others. Mankind does not have the moral capacity to govern fairly.