qofcc
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Joined: Dec 20, 2010 13:30:58 GMT -5
Posts: 1,869
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Post by qofcc on Apr 20, 2011 10:27:23 GMT -5
You are worried about not taxing the illegals who send money back to their homelands under the FairTax? They don't get taxed now! They get paid in cash, they don't file income tax returns, now. At least under the FairTax, they would have to pay tax on the goods and services they consume while they are here!
Not the illegals, the legals. There are lots of legal workers who send their paychecks home to their families in foreign countries or who come to the USA to work and save up money then spend it back in their home land.
And what about foreign companies who set up shop in America then send the profits back to their home countries? They're not spending the money here. Or the rich folks who earn their money in the US, then move somewhere cheap to spend their retirement money or spend money shopping and vacationing outside the US.
If you don't tax income and only tax spending, then people are encouraged to spend their money outside of the US. When I have co-workers visiting from Europe, their favorite tourist destination is the mall.
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skweet
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Joined: Dec 23, 2010 13:49:27 GMT -5
Posts: 1,061
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Post by skweet on Apr 20, 2011 10:27:51 GMT -5
[Here's the kicker, it is likely that the price you will pay for new goods would be about the same as what you pay now. The "embedded taxes" of the payroll taxes and Corporate income taxes that are part of the price of the goods you buy would be removed from the cost to produce those goods. Prices of goods will fall, so that the market price of goods will be about the same under the FairTax as they were before. ] Karma for "getting" it.
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fairlycrazy23
Senior Member
Joined: Dec 27, 2010 23:55:19 GMT -5
Posts: 3,306
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Post by fairlycrazy23 on Apr 20, 2011 11:06:13 GMT -5
You are worried about not taxing the illegals who send money back to their homelands under the FairTax? They don't get taxed now! They get paid in cash, they don't file income tax returns, now. At least under the FairTax, they would have to pay tax on the goods and services they consume while they are here!Not the illegals, the legals. There are lots of legal workers who send their paychecks home to their families in foreign countries or who come to the USA to work and save up money then spend it back in their home land. These are likely (very likely) low wage workers and don't pay much federal taxes anyway, I don't think this would be much of a drain on revenueAnd what about foreign companies who set up shop in America then send the profits back to their home countries? They're not spending the money here. Or the rich folks who earn their money in the US, then move somewhere cheap to spend their retirement money or spend money shopping and vacationing outside the US. Who cares, they don't set up shop here now, they may decide it is better to use the profits here to expand at least there employees would be working here and spending here, we need jobs so this is actually a big selling point to these companies no income or payroll tax making the USA the #1 place to do business, and business equals jobsIf you don't tax income and only tax spending, then people are encouraged to spend their money outside of the US. When I have co-workers visiting from Europe, their favorite tourist destination is the mall. now every time your co-workers visit from Europe they would be paying into the federal coffers. It is true if you 'tax or penalize' spending you will discourage spending, but I think the American consumer is voracious enough to over come this, I would rather penalize excess spending rather then penalize excess production.
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2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
Posts: 2,759
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Post by 2kids10horses on Apr 20, 2011 22:02:53 GMT -5
If we don't tax income, especially corporate income, foreign companies will have an incentive to set up shop here in the US. Which means they will be hiring people, renting office space, etc, which would grow our economy. So what if they took the profits overseas. They would be spending more money here on operating costs.
Foreign companies would "outsource" their work here!
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