Dave Ramsey's Thoughts On The Fair Tax Act!

[@lizrozon6308]

I hate that we get taxed on our income and taxed again on what we buy. Double dipping!!!!

[@ThatsJustEric]

Was talking to my cousin yesterday about this

[@unikornkontroller]

Now they're forcing eBay sellers to report what they've sold so even if you sell $600 of stuff for the year you now owe taxes on it. So you pay income tax, pay tax on something you buy and then pay tax after you sell it.

[@tonythaiger93]

Sure-45% of population pays $0 in income tax.

[@lawtowngirl85]

This ☝🏽

[@MWebb-de9pq]

Don't forget property tax. Taxed on the income, taxed on the sale, taxed on keeping the property. Triple dipping.

[@dginev]

Dave coming in with a moderate nuanced view! Love to see it. This kind of approach to the discussion is the way to build bridges between the different wings.

[@kennethholifield1242]

I would love to see it too!

[@ajo6751]

The other advantage of fair tax is that additional revenue is raised through those vacationing in the US, those paid under the table, criminals, cash businesses all pay taxes when they buy items. Tapping into those unpaid taxes would have huge benefits.

[@KjtheGreatPro]

The real issue is that the type of person that is able to get elected is not the type of person we need to lead.

[@thedopplereffect00]

Most politicians are "selected" now

[@amireallythatgrumpy6508]

The type of person we need to lead is the type of person that wouldn't want to lead

[@Dave-tz9zx]

income tax, ss tax, med tax, pfl tax, care fund tax, school dist tax, fire dist tax, libary dist tax, gas tax, sales tax, road property tax, l&I tax, all these are the largest portion of my expenses on a pie chart.

[@workinonit9562]

Car registration, fishing license, hunting license, look at all the taxes, fees on utility bills. People do not realize how much we pay in taxes!

[@randalwilson1795]

Overtimers get shafted with income tax. More work, less return.

[@colincopeland8890]

Taxation has never been the issue, the issue has always been representation. If you look at who represents us now you can see why we are where we are.

[@tduck828]

Amen but the only person at blame is the voters or the voting system as these fools keep somehow getting voted in!

[@vjs4539]

We don't even have representation because the elections are a total sham

[@michaelcarter266]

Good point.

[@braceyourselvesfortruth2492]

Uhh, you mean the ones we choose to represent us?

[@LDM805]

​@@braceyourselvesfortruth2492 Choose. 🤣🤣🤣🤣 That's a good one.

[@nathand.9969]

Here's to the people like my self who paid federal taxes this year!

[@Misaka-gt5yj]

Congrats on getting finessed.

[@michaelbergeron9664]

Very disappointed that you didn’t mention ANYTHING about the PRE-BATE check everybody gets each month under the FAIR TAX program.

[@Nareimooncatt]

I mean, it's only the key to the entire plan working. Lol

[@darrylgordon5170]

And, incorrectly state that there are "exemptions." THAT is the purpose for the prebate.

[@bjugler]

We can't expect them to be experts on the specific legislation.

[@michaelwoods4495]

These guys are right about the tax laws. The tax prep industry is needed because the laws are so complex but it's a real waste of talent. Some of the best people in America are engaged in significant effort and produce nothing. We're retired and should have simple returns and this year we have to pay a preparer because of complications with IRAs and rental property. I've been a CPA since 1969, though not in tax (accounting, reporting, and auditing which I hope creates value unlike taxes), and it's too hard for me.

[@georgewagner7787]

What about a flat tax? I have had to spend thousands just to have taxes prepared even though she charges me the friends and family rate

[@joshhoward1289]

Yep, this is the first year I couldn’t get my numbers to match what the software calculated. It is ridiculous.

[@mattcrouch9348]

A flat tax is defensible if you got rid of the regressive taxes (primarily sales & payroll taxes). The progressive income tax balances the other regressive taxes.

[@larrykramer2761]

@American Legend you have no clue how complicated his tax situation is. How could you possibly say "It doesn’t costs that much ever."

[@RealGalaxyGamers]

@@georgewagner7787 Fair tax would be better than flat tax.

[@cw48494]

The poor receive a few $1000 in tax returns with paying no federal taxes on their small income, because of their dependent tax-break, the rich complain. The rich also avoid taxes in a multitude of ways, the poor complain. Meanwhile, the middle/upper-middle class get the shaft.

[@superblump87]

I'm not poor and I think the rich should pay taxes.

[@richiet2222]

Taking 40% of your "HARD EARNED" money. Yeah right...

[@Jack-pd4ps]

Single people don’t receive $1000 while people with kids receive $1000s. Singles are really taxed into poverty. Rich gets tax benefits also. It’s a system that picks who they want to pay and struggle.

[@superblump87]

@Android 18 the rich "avoid taxes in a multitude of ways" as the person I replied to pointed out. How would the poor pay taxes? They are poor.

[@Jack-pd4ps]

@@superblump87 Every one should pay something

[@carolynmonahan2488]

I once heard that 40% of the people around me were paid under the table! A flat tax when buying would stop this.

[@sblijheid]

Yes. All the illegals who don't pay taxes but get benefits would be chipping in. That's fair since they make use of the system.

[@superblump87]

Heard that from....?

[@victorn6065]

Where you have"paying under the table", by definition, you have someone "buying under the table". Flat tax when buying is essentially in the same place whether you tax the income or you tax the purchase. People simply need to be accountable and legitimate when exchanging money.

[@ThomasShelby-xz2fk]

It would also create a black market for goods and services.

[@carolynmonahan2488]

@@ThomasShelby-xz2fk but hard to do for gas, homes, and many goods

[@diersirrigation]

The irs will never go away, there are millions of jobs at risk both govt and private.

[@joshhoward1289]

Jobs that add no value to society.

[@kennethholifield1242]

where were you when people lost their jobs! they were making type writers? its time to get rid of the Thieves. Just saying

[@SCORPION89199]

Hey the IRS did not exist until 1913 it cannot exist again all things that exist will eventually go away.

[@hockeyhalod]

"Do your own research" is becoming a pretty toxic phrase these days too. Also to be fair, I just hate that we have to "file" taxes when they already know everything reported by companies. So individuals should just have to look at what they think you owe and only file if there is a disagreement.

[@scarpfish]

Except they don't know everything on IRA contributions which you're allowed to make up to tax day.

[@sblijheid]

@Scarpfish Yes they do. All that information gets reported to the IRS and social security. Why do you think social secirity knows so well how much to give you?

[@ilikestuff8218]

People: "how much I owe?" IRS: "guess" People "500?" IRS: "wrong, pay more"

[@tomdamon7208]

There is a national sales tax in Canada . It's called a "Value Added Tax " or V.A.T. However , they also have an income tax . they also have high property taxes . that's the reason they come across the border to shop for clothes and shoes and they wear them crossing back to Canada . We in New Hampshire have no sales tax but the property taxes are stupid high . forcing seniors to sell out and leave the state they love . A flat tax , in my opinion is fair for everyone , no exceptions . BUY, our elected officials can't do anything simple and they won't . Lacking courage . thank you so much for bringing it forward !

[@mattcrouch9348]

You're very close. Think it through to the next step: WHY won't the elected officials make the tax code super-simple? . . .. because they don't know how? . . .. or because they have an incentive to make/keep it complex?

[@kennethholifield1242]

A flat tax would keep the IRS, a Fairtax would not keep the thieves around, Just saying

[@alex2143]

A flat tax would be unfair for people with low incomes for who a lot of their income already goes to simply staying alive. A progressive tax system is much fairer.

[@RetNavyChiefBTC]

I was a sailor once now retired from the sea. With that stated, on the few rare occasions that I may have consumed too much bourbon, I most definitely purchased it with my own money!

[@jeremyrocks9025]

Even if you do a flat federal tax, there will still be a large percentage of people not paying because they all are working off the books. Get everybody paying through sales tax.

[@zruthl]

this act would eliminate income, corporate, estate tax, gift tax, death tax and the irs. instead you pay a sales tax

[@Who_Dat_Ninja]

That’s hardly a meaningful percent of people.

[@mrjack8849]

I feel like this would encourage theft or other ways for stores around enforcing a very high sales tax. This could destroy businesses.

[@AuthorJaymiMozeak]

@@mrjack8849, now I'm curious. Currently, there are states that have a sales tax and there are other states that do not have a sales tax. Is theft higher in states that have a sales tax than in states with no sales tax? I haven't noticed it but I haven't looked over any studies either. Just lived it. There are thieves, murderers, and criminals no matter where you live. Unfortunatly.

[@bobsacamano7653]

@@zruthl sales tax would need to be about 35%

[@joeriveracomedy]

Funny how no one weeps for a single dad. How equitable.

[@1jw298]

Find yourself a woman

[@Nolaman70]

Stay single

[@superblump87]

Talk to a therapist about it.

[@RetNavyChiefBTC]

Would you feel better if I shed a few tears for you?

[@joeriveracomedy]

@@RetNavyChiefBTC I'm not a single dad. Never been married. But glad simps took the time to respond⬆️

[@ford88sw]

Fair Tax Act now!

[@aaronfisher7159]

Meanwhile $500 a month in federal income taxes get taken out of my check 😢

[@TromboneLoki]

In Nebraska I pay around $800 a month making less than $20 an hour

[@TehFlush]

Between my wife and I, we get robbed from almost 60k a year in just income taxes. It's basically someone's salary at an office job. It's ridiculous

[@aaronfisher7159]

@@TromboneLoki that’s crazy. Do you have a state tax they charge as well?

[@musselmanmedia5236]

@@TehFlush at some point i believe there will be an influx of migration to europe. more vacation less taxes

[@raphymartinez]

You can choose to buy or not buy things. You don’t get a choice on income tax.

[@scarpfish]

Yes you do. You can choose whether or not to work. Much like choosing not to buy essential things like say, food and shelter, it probably won't work out well.

[@raphymartinez]

@@scarpfish Essential items like food, medicine, and clothing are to be except from this right?

[@jamesbrown1645]

@@raphymartinez You get a prebate ($280 month for single) to pay for those. Doesn't apply to used goods so get your clothes at Goodwill.

[@stevenporter863]

Called a use tax (like toll - if you don't use road, you don't pay)

[@trebmaster]

Libertarians are guaranteed to hate taxes more than Ken and Dave. Think Ron Swanson.

[@wyattandres69]

If we were to label Ron Swanson on the political compass he would fall under anarchist socialist. That’s the true libertarian, and was historically. Unfortunately libertarian now (in America only) is the right wing version and Ron Swanson wouldn’t support that We know because the actor has spoken on this multiple times

[@sherriemyles2776]

Sheriff Judd is a great storyteller. I can listen to him all day.

[@bellmattwebb]

I have a friend who's household makes 250k but after "deductions" qualifies for food stamps. There is a problem with our current system.

[@slingbladez1360]

What a balanced, calm, and fair take on this. I was actually kind of surprised, but I don't really know why. Well done!

[@kookylili]

The UK pays 20% vat (sales tax) on consumables and then pay massive income tax as well. We can't understand how little tax Americans pay.

[@edwinroyal9734]

Wow, that's crazy. And here I am complaining about paying less than 20% income tax and no sales tax.

[@bjugler]

The Fair Tax Act is a bill in Congress. HR 25 It doesn't exempt food or anything, what it does is exempt all spending up to and below the poverty level, and it does that by simply rebating all taxes that would be spent up to that amount. It would require no individual to file or even track what they do with their money.

[@Mathis218337]

5:43 sure, but they still pay sales tax, gasoline tax, etc etc

[@fenian123]

Dave, the reason so many people don't pay federal income taxes is because they barely make enough to support their families. Everyone pays some type federal tax whether it's on gas or import tariffs passed to consumers. A national sales tax would benefit two groups, the low income, who would benefit from the exemptions Dave mentioned and the rich. Middle and upper middle would be paying most of it, as they are now. Yes, rich people make large purchases, but not as much a % of their income as middle and upper

[@johnsyler8580]

You need to get the "Fair Tax Book " and read it through. If any part of it is left out or misunderstood then it won't work.

[@kennethholifield1242]

not true, please read the book! or you can print out the actual law for the Fairtax, it's only 133 pages long. or just read the income tax code at 85,000 pages! good luck LOL

[@jimmay1988]

It is outrageously unfair when my wife makes $36k for the first time and still pays $8k in taxes. All the hard extra work is punished. Part-timers who make $20k hardly pay any taxes.

[@algeneb5596]

So family household taxable income is between $190,750 to 364,200? That's the 24% tax bracket. And it's only those dollars that are taxed at that rate because income tax is progressive.

[@alex2143]

1) no way those numbers are accurate, unless you're a super high earner already. 2) it's called a progressive tax system. That's generally considered fair.

[@markmyjak7739]

Your wife is overpaying her taxes. She needs to talk payroll and have fixed.

[@calebdoherty8607]

I’d be open to this proposal if all essentials were truly exempted. Basically someone on baby step two shouldn’t be paying anything. But if it truly only applied to stuff like luxury cars, vacations, restaurants, etc. than I’d be open to it

[@jamesbrown1645]

FairTax gives a universal basic income (23% poverty level which would be $280 a month for single household) to pay for essentials.

[@Nareimooncatt]

If there was an itemized list of exempt essentials, we would go from a 70k+ page tax code trying to define income, to a 70k+ tax code trying to define essentials. That's why poverty level spending in general would be exempt. It keeps out the lobbyists, and lets you decide for yourself what is essential.

[@algeneb5596]

​@@Nareimooncatt fairtax has what they call a prebate, which is an estimated dollar amount of the sales tax on what an average person would spend would on food. It would be per person. Anyways, there would be no lengthy discussions or rules as to what should be exempted from taxation. Only services and new goods would be taxed. Buy used clothes, car, house... no sales tax.

[@Nareimooncatt]

@@algeneb5596 the prebate is what I was referring to, but the prebate is not based on food spending per se. It is based on the federal poverty level thresholds for given family sizes.

[@chadwinings2214]

He asked me to google it, so I did. Google says 40% of US households pay no federal income tax.

[@LittleMopeHead]

Source?

[@1250ships]

You could both be correct. You are citing households, Dave was citing people. If the households not paying have more than the average number of people in them that would close the gap.

[@Josh_Alzamora]

The 4th Amendment protects you from double taxation and forfeiture and seizures. Learn your laws and hire a CPA who knows tax laws.

[@jgg204]

Taxation isn't the problem. Spending is the problem

[@peartfaldo]

spending?? you mean stealing.....

[@HellInAHandBasket45]

1:19 the only problem would be the government controlling the rate. You know they would jack it up.

[@BadBrad119]

Taxes stayed the same in my area despite rent and real-estate doubling in price. Of course the new property assessments came fast. Taxing should represent realistic base numbers that everyone is entitled to

[@LordOfTheGreen]

Maybe they should have read the bill 😂

[@utilityaccount8514]

It's a fun game to see how many minutes speakers can go on about this subject without mentioning the prebate as if it's not relevant. Sales tax exemptions on food and absolute necessities are a really basic matter states should already handle.

[@arthurvasey]

Over on this side of the pond, the rate of income tax varies, depending on earnings - the nearest thing we have to property tax is council tax - and even savings is taxable - but you would need a lot of capital before HMRC (His Majesty’s Revenue & Customs, previously Her Majesty’s Revenue & Customs, originally the Inland Revenue - Customs was a separate entity, primarily found at airports and where you get ships) starts demanding its cut in tax - the nearest thing we Limeys have to sales tax is VAT (Value Added Tax, formerly Purchase Tax) - that’s a fixed amount - some items are exempt, but there’s no variations - the VAT is included in the price - if it says £1 on the price sticker, it’s £1 - not £2.36! Must be a nightmare pricing things up over there - you budget based on the shelf price, only to find that it doesn’t include sales tax - so half the items have to be put back!

[@Takar100]

It's really not that hard. Everyone knows you have taxes.

[@arthurvasey]

@@Takar100 Yes - but here in the United Kingdom, the price you see is inclusive of VAT - you don’t find your grocery bill is more than you expected it to be! Although the extra on top is barely negligible if it’s small items! We barely notice it! Go to Wal-Mart in America and do your maths - all those items come to about ten dollars - then they add sales tax - haven’t got enough money!

[@Takar100]

@@arthurvasey I can understand if you're not from here, but for people here we know if something is $10 then it's going to actually be 10.82 or so (sales tax is 8.25% where I'm at).

[@Nareimooncatt]

This is one of the little talked about benefits of the FairTax, that it would be inclusive of the shelf price. It's great for budgeting, but the downside is it makes the plan easy to demagogue since most of our sales tax rates are exclusive.

[@natesnotes101]

Fairtax has a good chance now

[@ofcmerchant7442]

Modern day Sailor here: Thank you for changing the phrasing at the end lol 😆

[@samuelanderson1365]

What happens to Roth IRA if we switch to a national sales tax? That money is supposed to be used tax free

[@joshhoward1289]

Tax laws are always subject to change.

[@austinduke8876]

I think the better question is "Are my stock purchases subject to the sales tax?" another good one is "Is my home purchase subject to the sales tax?" The answers to those questions could radically alter the economic landscape.

[@scarpfish]

@@joshhoward1289 What you're not getting at is that for someone with a Roth IRA, that this sort of change constitutes changing the rules in the middle of the game, and effectively punishing the player under both rulesets, making them pay income tax upfront on the money going in before the change, but having to pay triple sales tax on any of that money or its earnings spent after it. It effectively makes using a Roth IRA, which I've been using for years, effectively pointless. And I can't get into a time machine and change it back.

[@joshhoward1289]

@@scarpfish Agreed, I’d be in the same boat but I’m still for this tax change.

[@brewski13]

I would assume you could get some kind of rebate based on the balance of the Roth.

[@respectamerica2382]

ITS UNCONSTITUTIONAL! ONLY STATES CAN TAX RETAIL SALES!

[@jessem4659]

Flat taxes are regressive. Can we make a rule that people have to take an Econ class before commenting on tax policy.

[@edheldude]

But simple. You can have flat tax and a negative income tax in beginning to replace social benefits.

[@respectamerica2382]

PEOPLE PAY ZERO BECAUSE THE INCOME TAX IS A VOLUNTARY TAX ON CORPORATE PROFIT!

[@TheAero36]

Google says 59.9% of US households paid income tax in 2022, so your call for research showed your wrongness right off

[@amireallythatgrumpy6508]

Only 59.9%? That's PATHETIC.

[@TheAero36]

​@@amireallythatgrumpy6508 How? You have retiree households, folks out of work, and folks getting tax credits. Also, some folks make less than the standard exemption. You are being childishly presumptive like they were

[@amireallythatgrumpy6508]

@@TheAero36 And you think tax is not taken out of that income? The one being "childishly presumptive" would be you.

[@dankbreh9013]

This conversation would be different if Americans actually received anything in return for their taxes. Instead all of the tax money goes overseas, to the MIC, or to banks servicing the interest on the national debt. Americans all hate taxes because we dont get anything in return for them.

[@kmaldonado8]

Seriously? What about public school? What about nice roads? Elderly care for the poor? School lunches? The fire stations? The police? Clean parks for our kids to play in? Safe food at restaurants via inspectors? Jails for the criminals? Schools for special needs children? System for children who are abused to remove them from their home? Public transport?

[@LoweredLine]

​@kmaldonado8 i know this comment is old but everything you just mentioned is paid for by local and state taxes. FairTax is for federal taxes

[@SugarBushBoys]

I saved for retirement and paid the tax converting traditional IRA’s to Roth. All my savings that I paid tax on, would be taxed again when I spend it with a national sales tax.

[@WookieSenshi]

I'm all for it as long as the numbers make sense. We're forced to pay this income tax, whereas with an added tax on consumables is optional. Has somebody who is pretty minimal and doesn't spend a lot of money on non-essential purchases I would very much rather have this kind of setup

[@qtcollect4608]

Sales Tax would put MORE money in everyone’s pocket via a prebate and paying no income tax. How much you’d pay in taxes would be by personal choice. And, 45 states already have a sales tax. It works and the infrastructure is in place.

[@Rizky06]

The Fair Tax plus the original tax system may be the result without repealing Constitutional Amendments.

[@richard77231]

Would rather have a consumption tax as opposed an income tax. We're not going to get to a simple income tax ever and you can state that millionares can't get away from it as easy (since they can borrow of assets for "free" income or generally get their money from capital gains).

[@scarpfish]

The millionaires can also buy luxury items aborad and claim them as used to get them around the fair tax.

[@sblijheid]

Capital gains is taxable.

[@richard77231]

@@sblijheid but at a lower rate than income

[@jefftomasello3258]

In New York we have a 8.75% Sales tax and an Income Tax!

[@slonikvasa]

They just should do 10% tax for everybody and that’s it!

[@davidhays8057]

Love the Fair Tax. As for the Flat Tax John Linder said, "Our current system IS a flat tax... just 100 years later!" A flat tax keeps the government's hands in the cookie jar to mess it up. The Fair Tax takes all that power away from the government. But that's exactly why it will never happen, unfortunately. Never in the history of humanity, have those in power given it up voluntarily . Two things will NEVER happen in government... The Fair Tax and term limits.

[@dnah02]

30 percent on sales tax is way too high.

[@MegaBugslife]

you are already paying 30% tax on every thing you buy... all the hidden taxes are included in the purchase price... payroll tax and corporate taxes are added to the price. Depending on the product, it ranges from 15 to 30% of the cost of supplying the goods. All prices would come down without all of the embedded taxes.

[@bigbusiness5208]

No one would pay 30% until the sale exceeded 1 million or 1.5 million or around there,I can't remember exactly.

[@randrews103]

Simpliest way to do taxes are the first 40k non taxable. Whether you make 20k, 40k, or 500k the first 40k are non taxable. No write offs. Your 40k is your write off. Add in a national sales tax and cut the budget and your golden. IRS would be cut by 90% because there would be no need for that many. Never going to happen but i can dream.

[@scarpfish]

The IRS wouldn't be cut one iota. They will just change from enforcement of tax on your wages to enforcement of tax on retail sales. I assure you that everyone will try to exploit the "used goods" loophole in the Fair Tax in the same way they exploit loopholes in the income tax system now.

[@markcole4736]

Scarpfish, you need to read the particulars of the Fair Tax. The scenario you describe is not possible.

[@edheldude]

The benefit of a flat tax rate over this is that you wouldn't have to check how much people earn yearly. You could just have an automated income account that'd tax you automatically.

[@Sacarat]

As long as the percentage is constitutionally locked, maybe. It would start at 10% (?) and get increased to 25% real quick.

[@peartfaldo]

6:02 EXACTLY. Been saying this forever.....

[@neowolf09]

Youre right we can make it happen

[@conservativepro-republicch4551]

I'm completely on board so long as the 16th Amendment is repealed in its entirety.

[@Tom_Ka_Guy]

Fifty-One percent pay zero income tax. Had no idea it had gotten this high.

[@diggernash1]

A combination of the fair tax and flat tax; along with a falt tax on gross revenue of all corporations, would be a good direction. No deductions of any kind, for anyone or entity. Tax law should not be used to do social engineering.

[@scarpfish]

Taxes by their very existence are social engineering.

[@diggernash1]

@Scarpfish Whisch is why the Constitution set very limited activities on which they could be expended. Now the Constitution is judicially ignored.

[@colemetcalf6321]

Let’s be honest, property taxes are just the subscription on living where you are.

[@TunaToons77]

Capital gains should be treated as income. The fact that it isn't is a total sham.

[@alanmccarthy4004]

Age of an individual is a huge factor. I'd be curious how many of those 50% are either retired and drawing pension (so have spent most of their life in higher tax brackets) or are young and working low skill jobs (so will spend their future in higher tax brackets). I agree with flat tax more broadly, but the argument presented here for it isn't great. It's not unreasonable or immoral for a tax system's burden and benefit to an individual to be measured and averaged over a decade or two.

[@chaoher6478]

One guy is talking about a flat rate for everyone who’s makes 30k and 100k a year to pay the same flat rate tax. While Dave bust his argument or point of view like nothing. He needs to understand that not everyone is rich and wealth like Dave.

[@ThomasShelby-xz2fk]

The Fair Tax bill is disgraceful. It would lay off thousands of accountants. Not only that but the rich would get richer

[@kennethholifield1242]

READ the Book ! Alan Greenspan in his book said if the Fairtax would pass in less than 36 months we as a nation would have so many jobs because of the fairtax theres not enough people to fill them all. I say a great problem to have.

[@jeffpadilla9891]

If the political party that wanted to win elections did this they would have support from so many Americans.

[@AllynHin]

Yeah, but they would just *promise* to do it and after they're elected, they forget all about it.

[@tjh7797]

It’s really stupid to say 51% pay no federal income tax without acknowledging they pay payroll tax. Rich people pay a very small percentage of their income to payroll tax

[@jonathanvazquez8858]

Alternative title: Two rich guys complain about having to pay taxes.

[@melanieb2132]

Eeesh.. everyone should pay something.

[@TehFlush]

Do broke people not complain about paying taxes? Nothing peed me off more than getting my first paycheck from a factory job and seeing $200 taken away.

[@jonathanvazquez8858]

@Surfing Cowboy valid point, they do, but the thing is and I actually like Dave, but he is just playing to the the same rhetoric that people with his wealth do. That is, trying to convince people that very very rich people shouldn't be paying high taxes. Which makes poor people feel the same way, so they lobby for lower taxes and or polices that favor the hyper rich, because they think that I'f they ever become rich they are going to be same boat. But in the end, the new tax policies only end up making the rich, richer and poor, poorer. It's a basic concept under the doctrine of capitalism.

[@TehFlush]

@@jonathanvazquez8858 sure, agreed. Ramsey unfortunately gets too chummy with stuff that benefits him. I wish we could just have a simple flat tax with a hard cap or something. Taxes are a nightmare

[@jonathanvazquez8858]

@@TehFlush Amen Surfing cowboy!

[@rickdunn3863]

Why all the ideas of collecting more tax money? How about talking about ways to STOP spending?

[@Silented1234]

I love this!!!

[@atsoc711]

Part of the Fair Tax Act includes a "prebate" for low income households, which corrects the "fairness" of the increased sales tax.

[@scarpfish]

Not just low income households. Everyone.

[@atsoc711]

@@scarpfish You're right. I forgot about that.

[@ihartsacto]

And therein lies the problem because the tax is no longer fair once one group gets an advantage

[@tylerwood92]

If forced labor is wrong when it takes the form of chattel slavery, why is it okay when it's done through forced confiscation of people's income?

[@aolvaar8792]

12 Nuclear Aircraft Carrier groups, 70 Nuclear Submarines, 1.3 MM servicemen

[@fhuber7507]

"The Fair Tax" as outlined in the book by that name... would actually make the highest income people pay more and for that reason, it will never pass. It's cheaper to lobby against it than to pay the sales tax. As published in the book... it would be a great thing to eliminate the income tax. UK's VAT is based on a similar idea... done with stupidly high tax rates though.

[@YouTh3r3]

We pay 10% more in Crook county on sales tax and we also have state income tax in Illinois.

[@kyleotterman7010]

Illinois is the best

[@galrickgak9615]

What spending should we cut on? Maybe the defense budget?🤷🏿‍♂️

[@MegaBugslife]

If you got rid of necessary departments, like the department of education, it would reduce the FairTax by 1.5%

[@TimothyOBrien1958]

If WE decide to do it, it can happen.

[@jacksonbrumfield1061]

This “half of Americans don’t pay income tax so therefore welfare queens” talking point has been around since the 80s and for some reason it will not die. When you take a look into these numbers, it is not due to people just sitting back and taking advantage of the system. These are people who are over the age of 75 and those who simply do not make enough to owe income taxes.

[@aolvaar8792]

My wife and I are in our mid 60's, Retired and have minor children. We don't pay taxes, The CTC pays it.

[@jacksonbrumfield1061]

@@aolvaar8792 yeah, that’s probably something these people are paying too. What Dave and Ken are not taking into account is that these same people are very likely paying state income tax, Social Security, Medicare, etc

[@mcephas6982]

I would prefer to get rid of all invasive taxes. Most importantly the income tax, but property and capital gains taxes should also be eliminated. The only taxes there should be are consumption based taxes like tariffs and sales taxes. Even better would be if the government just set up something like a go fund me and the taxes were entirely voluntary.

[@willoughbykrenzteinburg]

Congratulations; you just crippled the entire economy in probably 2 and a half years.

[@SmaragdKrok]

Dumbest idea ever

[@evanj313]

I get that 51% of Americans don’t pay federal income tax. However, why don’t they ever bring up that dozens of corporations, like Amazon, Netflix, etc. don’t pay any federal income tax. In fact, corporations like exxon mobile, get billions of dollars in subsidies every year.

[@crowz6247]

Another way to phrase the 51% statistic is that 51% of Americans cannot afford to pay federal income taxes. Because it means the exact same thing. The issue here is the same issue as Dave's normal advice; it works for individual situations, and would work in a bubble, but cannot work on a macro level. Because the simple fact is not everyone can be rich. You can't even have most people be rich. Because for, "rich" people to exist, there necessarily has to be, "poor," people. Similarly, states can get away with doing things like getting rid of income tax and raising sales tax because they're not self-reliant; they're subsidized by the federal government via money and resources. Ironically, Tennessee can get rid of income tax because it has the safety net of the federal government. Take away the subsidized infrastructure, funding, defense, etc. and watch how quickly Tennessee gets an income tax back.

[@grantcoskey2057]

I can totally vouch for the sailors comment.

[@Naw1dawg]

‘Used’ car market will skyrocket

[@mcleananderson4948]

States that don't have a state income tax have a competitive advantage vs states that don't. NC has one, we're also booming, the south on the whole is just booming.

[@katyedwards3935]

Stay away from political topics, Dave. They're NOT your thing. Just answer the man's question without bringing politics into the mix.

[@DavidSiegelVision]

At 4 min he says certain foods and things would be exempt, but I don't think that's the way the Fair Tax works. The Fair Tax sends a Prebate to everyone in the country, and that takes care of the progressive aspect. So no carve-outs as far as I understand.

[@TimothyOBrien1958]

I met an IRS agent who said he's for the Fair Tax.

[@Michael-0000]

The beauty of a sales tax partly or wholly replacing income tax is that it’s a consumption tax. You can voluntarily spend all you earn on goods and services and pay a lot in tax or you can choose to save and invest. As far as income tax goes, I’d also favor a flat tax - calling a progressive taxation system progressive implies that it’s fair which it isn’t.

[@scarpfish]

Another one who hasn't read the fine print or considered the downflow consequences, particularly for folks who have paid through the income tax system for years and structured their retirement plans to deal with that system.

[@Michael-0000]

@@scarpfish you have a point there. For those who have been paying income tax through their lifetime and building up retirement savings - a hefty sales tax would amount to double taxation.

[@36boys.]

Anyone know the book name?

[@ThomasShelby-xz2fk]

Flat tax would be a disaster

[@seantire]

I barely pay taxes with my income with the current bracket

[@leneeanderson4848]

I'm all for a national sales tax but, geez, 30%?! It's crippling.

[@ThomasShelby-xz2fk]

You would see inflation unlike anything you have ever seen. Middle class people would be skinned alive

[@teebone2157]

Many things will be unaffordable if sales text is inflated. 50% of those not paying taxes are poor. 1/2 the country has always been poor

[@mlow42]

Fair tax forces cash paychecks, to still pay tax. Illegals and small businesses get cash quite often.

[@darinherrick9224]

You got some real nonsense here. Obviously people with no income should pay no taxes. People who are disabled, elderly, etc. Obviously those people shouldn't be paying taxes if they have no income.

[@amireallythatgrumpy6508]

Elderly people generally have income. People on disability have income.

[@unlimitedpower4101]

All those companies who do tax filings will still find a way to change their business model to other financial services if the income tax somehow gets abolished.

[@jh26pt2]

Dave hits on the reason this will never happen: it would put too many people out of work. It’s true for most societal problems - taxes, crime, cancer, racism, you name it. The problems won’t be solved because too many people make too good a living from the problems continuing to exist.