FairTax: Helping the Poor

For people who think the FairTax hurts the poor. They couldn’t be more wrong! Or they could be confusing the FairTax with a flat tax system. The FairTax does everything a tax system can do to HELP the poor. Here is a short list:

  1. The FairTax untaxes ALL spending up to $2,500/mo.  (depending on family size)
  2. The FairTax puts federal income taxes back in their paycheck.
  3. The FairTax puts SS/MC (FICA) taxes back in their paycheck.
  4. The FairTax removes embedded taxes from all goods and services.
  5. The FairTax untaxes ALL used goods, which the poor use more than anyone else.
  6. The FairTax ends the practice of taking more from the poor as they work harder and earn more.
  7. The FairTax will return many jobs the poor used to have, but which got shipped overseas.
  8. The FairTax increases the number of new jobs, which allows the poor to work their way out of poverty.
  9. The FairTax effectively ends the IRS, which have used their power to terrorize and intimidate the poor.
  10. The FairTax dismantles a tax code that is so complex and convoluted the poor, and no one else, can understand it, and replaces it with a very simple tax system.
  11. The FairTax replaces a tax system that requires expert help, which the poor can’t afford, with one that doesn’t require any help to understand.

And the list goes on, but the thing to remember is that when it comes to taxes, the FairTax, for the first time in American history, gives the poor the same opportunities that the rich have; which increases their chances of lifting themselves out of poverty.

So if someone claims the FairTax “hurts the poor”, ask them if they truly want to help the poor, or if it is merely their goal to keep the present tax system as a tool for keeping the poor in economic bondage.

If you have more ideas of how the FairTax can help the poor, we’d love to hear your comments.

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Posted in FairTax, FairTax vs. flat tax, Myth, Poor, Prebate
16 comments on “FairTax: Helping the Poor
  1. Stacey says:

    My state, Louisiana, is notorious for keeping the poor dependent on the government. That helps generate votes for a certain political party. This sounds like a great plan…please keep pushing this idea!

    • I’m sorry to hear that Stacey. I thought Gov. Jindal was doing a pretty good job; but then I’m in Texas, so I don’t get the same news you do. Hopefully the FairTax will help with the situation over there. 🙂

    • Bill E. Payne says:

      My sympathies, Stacey! The FairTax is more than an idea – it is proposed legislation in both the House and Senate (HR25/S13), and it’s arguably the most important legislation since the Constitution itself. I’m looking forward to snatching the purse strings back from those who abuse what’s inside the purse – my money! And yours, of course!

  2. Rick Yuzzi says:

    Those with initiative would be motivated to work, because they would get their full pay check. They would be motivated to save, because they would only be taxed on what they spend. This would be very good for those trying to get out of debt. They could work extra hours or an extra job, and not have to worry about paying more in taxes. They would keep all the money, and if they cut back on spending, then that extra money can go toward paying off the debts they owe. They’ll get out of debt faster, because their take home pay is higher, and they’re paying less in taxes. If they’re really frugal, they may even get more in their prebate than they pay in FairTax.

    • Well Said, Rick! And I think most of us here are in agreement that the FairTax would help provide the poor with that initiative; much more than the current tax system can. Thanks!!

  3. fairtaxer says:
    • The FairTax helps the poor save $ on tax preparation.
    • The FairTax increases take home pay to accelerate paying off debt.
    • The FairTax untaxes education; giving the poor a better chance at earning degrees.
    • The FairTax does not punish marriage; allowing couples to pool their resources without being affected at the end of each tax season.
  4. Christina says:

    What do we do with all the unemployed IRS workers?

  5. Daar Fisher says:

    Liberal, or Conservative, we’ve joined together to work together. Join us to learn HOW the FairTax will END CLASS WARFARE. http://www.facebook.com/groups/endclasswarfare/

  6. Sean Graham-White says:

    I’m confused about:
    #1. I didn’t know that anyone’s spending was taxed — only their purchases.
    #2/3. How will those programs be funded?
    #6. How does a taxation system ensure that someone works harder … usually that is tied to pay, benefits, advancement opportunities….
    #7. How does FairTax dissuade corporations from keeping/moving jobs overseas? You’ll have to get the US Chamber of Commerce from be in favor of offshoring, and you’ll have to get Congress to remove tax benefits for offshoring of jobs.
    #8. This is the first time I’ve ever heard of tax policy guaranteeing jobs. That is simply not possible. How many times have we heard that tax cuts would create jobs? And that obviously hasn’t happened over the last decade. How will your can your policy “guarantee” jobs?
    #9. Actually the IRS doesn’t really “terrorize” anyone, nor is that their purpose. The IRS collects taxes owed — they don’t care if you are poor or wealthy. If you owe taxes they will endeavor to collect. Now, obviously the collection of taxes will hurt the poor and middle class more than the wealthy, but under the current progressive taxation system the poor tend to pay no taxes anyway so they don’t need to fear the IRS. Who should fear the IRS is the wealthy — and I have a feeling the elimination of the IRS would make them feel much safer.
    #10/11 — see #9, the wealthy want the IRS gone, but at the same time they can afford to hire people who can accomplish hiding their money, etc. under the current system. They win either way.

    • Doug says:

      The answer to every one of your troll questions can be found at FairTax.org. Go do some research.

    • Dean Majors says:

      #1 – What’s your point?
      #2/3 – Funded by the Sales tax collected. Revenue neutral, just collects it a more efficient way.
      #6 – Some people do avoid OT hours because so much more is w/h from their checks. They don’t get 2nd jobs because it would put them in a higher tax bracket. They don’t work because if they make a certain level of income their SS check would become taxable. Happens every day.
      #7 Companies move overseas in part to save money. Often the lower tax rates in foreign countries is what leads them overseas. If the US had the lowest tax rate (0%) for corporations, that would reverse and you would see those companies flocking to the US to avoid higher taxes in other countries. See the 60 minutes report from last Sunday.
      #8 Sorry, but if companies come to the US as in point #7, jobs would be created. It’s a fact companies leave here because of the higher tax rate looking for a lower tax rate. It’s a pretty safe assumption you could use that in your favor if the US had the lower tax rate. It’s common sense.
      #9 I don’t think any income level would miss the IRS. I think every income level would feel more safe with it gone. Poorer people do fear audits. Poorer people don’t have the cash to higher good tax lawyers to fight an audit. The IRS DOES lose tax cases, so they don’t always take a fair position. Poorer people are more likely to lose that battle if it pops up. Everyone wins with the IRS gone…except the IRS.
      #10/11 – You opinion here is completely colored by the present system. If the rich can hide their money in the present system, maybe a new system is needed?????? Based on your comment, you should want the present system changed because the rich have the money to abuse it! That’s the problem with the current tax system. You have to define income, define expenses, define when you recognize either, etc. It favors the wealthy who can pay someone to work every angle to avoid taxes. This system says make as much money as you want!!! The tax will be collected when you SPEND it. Poor people are get their tax paid back, so they aren’t hurt. Rich people have no way to hide their money. If they spend it, it’s taxed. If they save it, they will have even more money later to spend, which will then be taxed! You can’t hire a tax lawyer to get you out of sales tax!

    • Maybe it’s me who is confused, Sean.
      #1 I thought when you spent money it was on purchases. Or is it when you purchase something you spend money?
      #2/#3 Consumption taxes are amazing this way, because those programs will be funded by everyone; including the illegal immigrants who have been raping those same systems for the past 4 decades.
      #6 No tax system can truly ensure that someone work harder (and I never said the FairTax would); BUT (and that’s a Beyonce butt) the current tax system ensures that people work less by punishing them for working harder by taking more in taxes. So if we eliminate that punishment (via the FairTax) people CAN work harder without the threat of being taxed more.
      #7 The FairTax does this by eliminating their tax burden. Maybe this post will explain it better: The Lemonade Stand, by Max Pruger. Basically, companies are fighting to find a tax haven. Tax havens are countries with the lowest tax rates. If the US can lower their tax rate below everyone else, companies will come here and bring their work, jobs, and money with them.
      #8 See #7
      #9 I beg to differ. “Tax refunds sought by 1.6 million poor Americans over the last five years were frozen and their returns labeled fraudulent, although the vast majority appear to have done nothing wrong, the Internal Revenue Service’s taxpayer advocate told Congress yesterday.” … [NYTIMES Article]
      Here are a few more examples:
      http://www.alamoministries.com/false_accusations/tracts/irsconduct.html
      http://articles.latimes.com/1985-03-22/business/fi-29935_1_irs-procedures
      #10/#11 See #9.

  7. // Due to the prebate, it makes “moochers” out of tens of millions of low income workers.// Hank, what do you think the EITC and Welfare have done for decades now; but without any incentive to get out of poverty? The FairTax at least provides those people with an incentive to get out of poverty by giving them their paychecks back. And if you think ANY company is going to keep MY taxes, you’re more full of yourself than you let on to be.

    (1) What part of “UP TO” do you not understand? The vast majority of people who will benefit from the FairTax the most are couples with 2 children in the household (ie THE AVERAGE HOUSEHOLD). Is it not customary to address those who are most affected? And yes, I’m aware that YOU will say they are not the most affected, so don’t even go there.

    (4) I said “The FairTax removes embedded taxes from all goods and services.” Which it does. If a company unscrupulously wants to keep their prices higher than any other, then that company decreases their risk of survival.

    (7) CALL-CENTER JOBS, Hank. #1 On the list of jobs to move overseas. (Where do you get “flipping-burgers”?) Not only do these jobs include answering phones for customer support, they include calls for purchasing goods and services. Answering phones is not a skill-based job, Hank. Millions of those jobs have been outsourced to India, Pakistan, and China.

    Second on the list is AUTOMOTIVE, Hank. Nearly the entire state of Michigan has been devastated by the loss of Automotive Plants over the past decade or so. Get a grip, Hank! Stop fighting this!

    (9), (10), (11) Hank, you’re being ridiculous. All you’re doing is defending the IRS.

    // The poor don’t pay any income tax// Tell that to my wife who just had to pay out $3,500 of SECA taxes on the $12,000 she earned this past year because her boss is too cheap to hire her on full-time.

    // nor do they need to hire professional help// WHAT?? You’re telling me that I didn’t have to pay $200 for that TurboTax? Are you telling me that my neighbor didn’t have to pay $500 for someone to handle his taxes? Poor and middle-class people from the east-coast to the west-coast are paying professional to help them with their taxes because they are deathly afraid of being audited, or worse, JAILED, because they may screw up on their tax returns.

    // nor do they even have to be able to read the 1040 instructions// Hence, the reason for so many problems with the current system. With the FairTax, they won’t even have a need to read ANY forms. Want to pay your taxes, go to the store and buy something.

    Good Bye again, Hank!

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