Comments on: Financial Question For the Weekend http://www.moneycrashers.com/financial-question-for-the-weekend/?utm_source=rss&utm_medium=rss&utm_campaign=financial-question-for-the-weekend personal finance blog Sat, 21 Nov 2009 04:07:50 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Farmer http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5730 Farmer Fri, 02 May 2008 16:37:15 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5730 I am heavily in favor of the FairTax - it is a comprehensive tax reform bill that not only will fix the IRS, but stimulate our dying economy! I am heavily in favor of the FairTax – it is a comprehensive tax reform bill that not only will fix the IRS, but stimulate our dying economy!

]]> By: MJS http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5668 MJS Mon, 07 Apr 2008 21:38:10 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5668 How does the US match up with other countries when it comes to taxing? Are other countries taxing like the FairTax or how we traditionally have been taxed? Not that that would be the decision maker but I'm just curious. How does the US match up with other countries when it comes to taxing? Are other countries taxing like the FairTax or how we traditionally have been taxed? Not that that would be the decision maker but I’m just curious.

]]> By: author http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5666 author Sun, 06 Apr 2008 22:26:51 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5666 I couldn't have said it better pharmboy. it discourages people to work more, because working more for hourly workers means they'll be put into a higher tax bracket. We spend BILLIONS every year spending money to file our taxes, and it can all be changed by heavily taxing spending, rather than productivity. Also, for those of you who haven't researched the fair tax, it would send you a pre-bate every month to reimburse you for taxes you incur for necessities such as food and household goods. I couldn’t have said it better pharmboy. it discourages people to work more, because working more for hourly workers means they’ll be put into a higher tax bracket.

We spend BILLIONS every year spending money to file our taxes, and it can all be changed by heavily taxing spending, rather than productivity.

Also, for those of you who haven’t researched the fair tax, it would send you a pre-bate every month to reimburse you for taxes you incur for necessities such as food and household goods.

]]> By: pharmboy http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5665 pharmboy Sat, 05 Apr 2008 22:58:48 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5665 I'm all for repealing the 16th and enacting the FairTax. Taxes do two things. They generate revenue and they affect behavior. The federal income tax generates billions in tax revenue but does it at the expense of discouraging work. I'm an example of this. Thanks to the highly compensated employee clause of the IRS's 401(k) regulations, I purposely asked my boss to let me only work 36 hours per week so that my pay would drop and I could pay less in taxes by investing the full 15.5K in my 401(k). I chose to work less because of our tax system. The FairTax would stop punishing the most productive Americans and it would save us billions in wasted time filing taxes in the atrocity of a tax code that we currently use. I’m all for repealing the 16th and enacting the FairTax.

Taxes do two things. They generate revenue and they affect behavior. The federal income tax generates billions in tax revenue but does it at the expense of discouraging work.

I’m an example of this. Thanks to the highly compensated employee clause of the IRS’s 401(k) regulations, I purposely asked my boss to let me only work 36 hours per week so that my pay would drop and I could pay less in taxes by investing the full 15.5K in my 401(k). I chose to work less because of our tax system.

The FairTax would stop punishing the most productive Americans and it would save us billions in wasted time filing taxes in the atrocity of a tax code that we currently use.

]]> By: author http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5663 author Sat, 05 Apr 2008 14:50:15 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5663 maryland, you need to research the fair tax more, because it would not raise the price 33%. When you buy something right now, there is already about 23% worth of taxes built into that price from the taxes that retailers, distributors, and manufacturers have to pay to get that product to you. if you eliminate all of those taxes, companies will be forced to lower their prices due to the law of free market economics. One company will find a competitive edge by lowering their prices and the others will follow suit. They won’t collude, because there’s so much incentive for the company with the weaker market share to lower their price if it’s costing them 23% less to deliver that product. You do have a good point about the federal government still passing an income tax later on down the road. But, we as citizens would have to make sure this didn’t happen. We are the ones that elect gov’t officials, so we would have to put in place those that believe in what is working. Plus, if the fair tax DID work well and everyone was liking the fact that they never have to deal with the IRS again, then no sane politician would vote for another income tax. maryland, you need to research the fair tax more, because it would not raise the price 33%.

When you buy something right now, there is already about 23% worth of taxes built into that price from the taxes that retailers, distributors, and manufacturers have to pay to get that product to you.

if you eliminate all of those taxes, companies will be forced to lower their prices due to the law of free market economics. One company will find a competitive edge by lowering their prices and the others will follow suit. They won’t collude, because there’s so much incentive for the company with the weaker market share to lower their price if it’s costing them 23% less to deliver that product.

You do have a good point about the federal government still passing an income tax later on down the road. But, we as citizens would have to make sure this didn’t happen. We are the ones that elect gov’t officials, so we would have to put in place those that believe in what is working. Plus, if the fair tax DID work well and everyone was liking the fact that they never have to deal with the IRS again, then no sane politician would vote for another income tax.

]]> By: marylandterps http://www.moneycrashers.com/financial-question-for-the-weekend/comment-page-1/#comment-5660 marylandterps Sat, 05 Apr 2008 05:28:08 +0000 http://www.moneycrashers.com/financial-question-for-the-weekend/#comment-5660 The Fair Tax would raise the costs of good about 33%. If that is not bad enough, there is no guarantee that the Federal Government would not later impose the income tax again (when they wanted more money). Then we would be taxed twice. Collecting this tax would also be a nightmare, the retailer would have to deal with this & probably raise prices b/c of this. The real solution is to shrink the size of government & to impose strict controls on its future growth. The Fair Tax would raise the costs of good about 33%. If that is not bad enough, there is no guarantee that the Federal Government would not later impose the income tax again (when they wanted more money). Then we would be taxed twice. Collecting this tax would also be a nightmare, the retailer would have to deal with this & probably raise prices b/c of this.

The real solution is to shrink the size of government & to impose strict controls on its future growth.

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