[TaxItRight]

https://finance.yahoo.com/news/congress ... 55705.html

Does this have a chance to pass? Hopefully not, otherwise it will probably drive everyone of us out of business.

[SumwunLost]

There’s a fairly lengthy thread about this.

Originally, it was reported that the Speaker was guaranteeing a floor vote. Yesterday, I read that he was now saying it must go through “regular order.” So Ways and Means could decide not to give it a vote or, if it does, change the bill significantly.

I think there is no chance of this in the next two years. In the Senate, the Democrats would have to lose two votes and the Parliamentarian would have to agree that it is a budget measure that can avoid cloture. The President has said he will veto it.

So, although it is not going to happen in this Congress, I remain concerned that the oxygen of publicity will keep it alive for a Congress that is more amenable to it passing.

I wonder if Republicans will run on this issue in 2024? If they do, and are seen to have a mandate for it, I will be most interested to see how it plays out in Congress.

[CantonCPA]

Will it pass this year? No. Will it be a rallying cry for the 2024 election cycle? Possibly. Will it ever pass? I hope not -- for me (personal finances), our professional (livelihood), our society (inequality), and our economy (tax cheating 2.0).

IMO, most people lack any real understanding of income, taxes and math which will allow the "fair tax", "flat tax", "national sales tax" to fester within certain ideologies.

I find it ironic that some people willingly jump on the bandwagon when it will directly, and substantially negatively, impact themselves. For instance, my retired neighbor who lives off of savings and Social Security thinks the proposal is absolutely amazing...And when I try to explain her income, her taxes, the math behind the proposed tax plan, and the negative impact she would experience, I'm told I don't know what I'm talking about.

[AT4PMC]

Save your valuable time and ignore the politicians, this talk has been going on many many decades and always ends up flat.

[Nilodop]

and always ends up flat.

[gatortaxguy]

The Fair Tax is consistent with economic theory, but has no realistic chance of passing because it will have losers and winners and losers scream louder. Asset values will be affected. If it were to pass it would presumably have exceptions for those powerful enough to get them. That would raise the 30% figure because the Fair Tax is intended to be revenue neutral.

I'm hearing TV pundits say the proposal raises prices by 30%, but they don't mention the stipends designed to fully offset the additional burdens on low income people.

You're better off ignoring it.

[missingdonut]

I'm hearing TV pundits say the proposal raises prices by 30%, but they don't mention the stipends designed to fully offset the additional burdens on low income people.

When the ACA was in the process of passage, a number of my clients were indignant that they'd have to pay a 3.8% sales tax when they sold their home. I'd explain the reality to them, but even if I corrected five people's understanding, it was a drop in the pond.

The facts didn't matter then, and they will matter even less almost 15 years later and a tax rate nearly 8 times as high.

I agree, though, it's best ignored.

[HowardS]

Is this the same topic as here?
https://www.taxprotalk.com/forums/viewtopic.php?f=11&t=27369

[juro]

and always ends up flat.

i remember back in 1995 when it seemed the flat tax was a sure thing.

[HowardS]

i remember back in 1995 when it seemed the flat tax was a sure thing.

It was proposed in the first Continental Congress.

[DMathCPA]

This will never happen as Congress will not give up its ability to legislate through the tax code.

[SumwunLost]

Congress can still legislate for a national sales tax. Look at Europe. Value Added Tax is easily more complicated than income taxes. It is also open to the same social engineering as income taxes. Again, look at Europe. Although there is harmonization between states, to a degree, there are rules that allow certain industries to avoid VAT. For instance, books were zero-rated for a long time in the UK. Not sure if that is still the case. Dentists got clobbered when they started selling toothbrushes etc, because the majority of their sales are exempt and the inputs could not be claimed. Without a lobbying industry, there was no appetite for change. Imagine what would happen in this country, where corporate lobbying is more acceptable.

Of course, when that happens, we will need a whole government department to administer the laws. So we will need a National Sales Tax Bureau. Because our economic health is a matter of national security, I imagine that would be a bureau of the Department of Homeland Security.

There are times when my mind races ahead of the rest of me.