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Point of ViewDave SaysBy DAVE RAMSEYPublished May 21, 2009
That tax isn’t fair Dear Dave, Dear Evan, The argument against the sales tax is that it’s regressive. This means it’s more of a burden on poor people, because they would pay a higher percentage of their overall income. But there’s a valid counter-argument. As I make more money, I also save more, give more and spend more. And if I spend more under the Fair Tax system, then I’m actually paying much more in taxes! More than anything, proponents of the Fair Tax are saying that our current method of taxation is wrong. They also believe that as much money, if not more, could be raised with a properly-implemented national sales tax as with an income tax. Keep in mind that nothing this side of Heaven is perfect. We’d see a lot of job losses if the Fair Tax system were put in place. Tax preparation services and things like that would simply cease to exist, but it would also take a lot of the politics and special interest garbage out of the system. Some people want you to think that
Fair Tax supporters are against taxes or government in any form, and that’s
just not true. The rallies that have been held lately were made up largely of
people who are against government waste, deficit spending and debt.
In part, the income tax is designed to motivate people to do certain things the
federal government wants them to do, and the rallies are also against the idea
of making government the big daddy with answers to everyone’s problems. Stop the allowance to beat debt? Dear Dave, Dear Erin, Kids should learn at an early age that money is connected to work. Even a kid who’s in kindergarten is old enough to begin doing some age-appropriate chores around the house. We did this kind of thing in our
home, with all of our kids, but we called it a commission. If they did their
jobs, they got paid. If they didn’t, they didn’t get any money. It didn’t take
long for them to make the connection! * For more financial advice, please visit www.davesays.org. |
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