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Old September 7th 04, 06:09 PM
CB
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"Wdtabor" wrote in message
...
In article , "CB"

writes:


Shift the sales taxes away from the things people need to have to live and
put tax on the things that are not essentials to live.


THe FairTax addresses this not by exempting certain goods, but by rebating
the
sales tax paid on spending up to the level determined as needed to cover
basic
expenses.

Using a formula very similar to that currently used to determine the
poverty
line, the tax paid on necessities for a given family size is determined
and
each month you get a check (or more likely, an electronic deposit) to
reimburse
you for that tax. The effect is that basic living spending is tax free to
everyone, rich or poor alike.



The trouble with all these great ideas is that the cost of administering the
taxes can out weight the tax benefit. In theory your idea sounds great, but
the beauracracy involved would be immense.