I think people forget that the dismantling of a bureaucracy and all of the work that goes into keeping up with that bureaucracy is saving money as well.

Wish I could choose this option , trust me I would. Too much freeloaders that contribute nothing . Fair tax act for me

I like how earnings are not taxed only consumption plus the IRS no longer asserts itself into all our finances anymore which should be none of the government's business anyway.

There are NO situations where the current tax system yields a better result for any individual. The “me me me” scenarios just evaporate with the FairTax. Somebody will ask about their child tax credit or their mortgage interest deduction under the current income tax. Yes, those deductions, credits, and any other savings mechanism under income tax are gone… BECAUSE THERE’S NO MORE INCOME TAX. That’s like complaining you can’t use a 20% retail coupon because the regular price was already reduced by 50% across the board. Keep up the good work! FairTax is superior. It solves taxation. It’s a jobs engine. It addresses illegal immigration.

This can pretty much get companies and especially dealerships to lower costs. People would be more likely to by a used products so if a company wants you to buy something new they’ll have to lower the priceof the new item to make it more enticing or when it comes to technology they’ll actually have to make some sort of major improvement to make it worth spending the tax on and hopefully the lower the used market gets the better the pricing on new products would be. It forces companies to play fair with pricing and forces people to actually be mindful of their money which many arent

Don't forget that corporate/business taxes are simply passed on to the consumer along with the compliance costs (lawyers and accountants). The 23% figure is the estimate of what that costs the consumer. So in theory, the price of some good should be the same as before the fair tax, but you have more money to spend. I think one big reason why a lot of politicians hate the fair tax is because it removes their power to use the tax code to help their friends and hurt their enemies. It also makes it harder for them to hide the true cost of government by hiding taxes embedding them in businesses

I'd like to see the effect on people making under 50k say MFJ 30k or single parent 25k and even if you were at min wage somehow 15080. i assume they would still be slightly better off because of the monthly payments but would be nice to see that in the formula and on the video and maybe explained.

as a fan of the fair tax back when neil bortz and mike linder wrote the book its great to see this finally coming up in daily conversations. second i think a lot of people dont understand how many taxes they pay that are embedded into the price of each product they buy which will now be removed. people will have more money in their pocket and the prebate will help the poor as it will pay for their necessities as it is progressively distributed. the fair tax will return power to the people as they had before the irs and income taxes and the establishment knows it and will seek to discredit it.

Awesome Travis. This is a very interesting topic to discuss. Glad you are looking at it with an open mind (both ways). I think I’m like you, largely in favor of it but want to see the facts. I hope you focus on the numbers (calculations) a while first before expanding the conversation. That said, I am very in favor of less fed government centralized control. This Act would be a HUGE step in that direction. The lobbying and controlling of our spending habits by govt is out of control. Large companies have never had so much influence as today. Sickening to think of how much corruption is going on behind the scenes right now for favorable tax code. Fair Tax would make things incredibly transparent. Beyond the loopholes for the wealthy and corporations, it is amazing that any everyday average American supports today’s system of typically paying more taxes than you actually owe, and having to calculate and ask for your own money back (and be penalized if you get it wrong in your favor). Mind boggling bureaucracy for the sake of political games, power and control.

Hello T, I just want get rid of 80,000 page IRS code. Fair Act helps keep more money in my pocket.

It is not the place of the federal government to pay for food or housing.

If we are all going to pay less taxes with this plan, how in the neck is this going to address the federal budget deficit? Are upper income earners really expected to spend all their income here in the US? With more expendable income they will be able to save at a higher rate whereas lower earners will still spend proportionally more on basic necessities.... thus creating further income inequity. Not to mention goodbye to capital gains taxes. What is your analysis of the effect on the supply side. Some areas will be negatively impacted. What is the analysis of what will happen with corporate taxes? Import taxes and tariffs. How about our trade deficit?

The first question you covered was a big one. You spoke to it, but I’d have shown the numbers again with Child Tax Credit and EITC. Your effective tax rate was way off for a family making $50k. My eff rate is only slightly higher for ~$180k. I agree with your assumption on the payroll tax, this is an employment cost. You made a reasonable assumption.

First off, let me just say thank you for being a reasonable independent voice when it comes to analyzing the FairTax! I'm one of the volunteers for American's for Fair Taxation, the group behind the FairTax. As such, I like to scour the web looking for discussions on the plan, and it's a breath of fresh air to see someone actually working through the plan and putting examples together, rather than making a bunch of lies and omissions because they have some vested interest in the current system. I.e. In one of your videos on this, you wondered why democrats don't support the plan because it promoted recycling. Some did over 20 years ago, but identity politics and desire to maintain control over us with the tax code has caused most politicians to turn away from it. 11:15 That said... housing. You said you didn't know how the tax would impact it, so I'll try to explain. If you buy a new house with cash, you would pay the tax on it. If you buy used, there would be no FairTax applied. This is no different than buying a new or used trinket. If you mortgage one, it gets a little convoluted. The above two situations apply the same in regards to the house price itself, but mortgages and other loans would have a tax applied to them regardless of new vs used. In the bill, H.R. 25, there is a definition of intangible property in Title II, which includes debts, and intangible property would not be taxed. In chapter 8 of that title, it covers financial intermediation services. It effectively states that service fees for banking services are taxable. Right now, the mortgage payment you pay covers the debt as the principle, with the service fee and investment pools blanketed as your interest payment. With the FairTax, the principle debt would remain split out as non-taxed intangible property (keep in mind a new home would still have the tax, this just doesn't double tax it), but now lenders would have to split out the interest into its service fee and investment pool components in the bill. The investment pool would not be taxed because investments in general are not taxed. That means the sales tax would only be applied on the service fee portion of a loan. At 13:00 where you mention people estimate interest rates would go down, this is why. You are no longer covering all the embedded taxes on the entire interest payment, and only paying a visible sales tax on the service fee portion of the payment. I could see this also leading to more competition between lenders with this greater transparency in what you are actually paying for. Also keep in mind, all this only applies to the principle home price itself. If you have inspections done on a used home, those would be a taxable services. If you buy a used home with a remodel bundled into the sale, the remodeling would also have the tax applied as a new product/service. Same with other things, like buying a used car. If you buy a used car from the dealer, but they installed new tires to make it road worthy to sell, the tax would apply to the tires and installation fee, but not the entire car. Hopefully this helps you understand it better.

I just wanted to say I’m just a kid trying to wrap their head around these events and you’re a huge help In understanding, keep up the work!

People may not stop spending, but they will start planning better for their large purchase items. but if the federal tax increases, you really can't plan for that.

ok, so the premise at 12:00 is inaccurate. New home prices will not go down because of the tax. They will go down if the mortgage tax credit goes away. In reality the tax not being applied to "used" homes means that your resale price on a home will go up to closer resemble the new home price per sq. ft. So home prices (and values) will go down drastically when the mortgage tax credit goes away, and I do not know this tax plan well enough to know if it does or does not do away with that credit. Home prices generally will not go down because of how the tax is applied. Used home costs may go down slightly but new home prices will not "fall to meet the market" of used homes.

I can see eBay and Amazon taking off if or when this Fair Tax Act gets implemented.

What about retired people who depend on social security and Medicare . Are they now toast even if they paid their dues for life?

88% of all homes are pre existing no tax on used or pre owned., stuff

I am a retailer & wholesaler in Minnesota, for those taxable, I have seven counties, each with their own rate. It ranges from 0.675% to over 8% On this premise, what is the ACTUAL rate?

I like your open minded and fair approach to this topic. I agree that for someone who has little savings in Roth and non-qualified accounts this could be a very favorable bill. It does suggest that a person should probably favor traditional tax deferred accounts. If a person saves heavily in tax deferred accounts and the government raises the tax brackets in a couple of years it might mean getting hit for a few extra percent. If a person saves heavily in Roth and non-qualified then the implementation of the fair tax means getting taxed twice on the same savings, once as it is earned and then again when it is spent.

If this passes and everyone pays less in taxes and companies pay no tax, would the country go further in debt? Wouldn’t social security n Medicare go bankrupt?

This would be a tax burden towards people who are retired and on a fix income.

How will this effect Lebrons Legacy

Tax should be completely automated. Governments would make more money and people would experience more freedom.

Say a person makes 55,900. Wouldn't that person pay only 11.5-20% to federal, instead of say 23% for goods and services which is currently 0%? The only few goods and services that I know the government charges the consumer is gas, air travel, alcohol, and cigarettes. Isn't it true that lower income individuals would least benefit and anyone making over 170k a year benefit the most?

End the IRS 2024

How does this raise the same revenue since saved income is not taxed and high earners will not spend 100% of earned and unearned income

I'm wondering what the impact would be for disabled veterans that can't work and live off of their disability pay which currently isn't taxed?

The Fair Tax would be Unconstitutional. Why? Congress cannot just tax anything that it wants. Congress is limited in its taxing authority to the US Constitution. Congress only has the authority to lay and collect taxes in the form of Duties, Imposts, and Excises per Article 1, section 8 of the US Constitution. Imposts and duties are taxes on imports and the shipping of imports. Excise taxes are, according to the Supreme Court in Flint vs Stone Tracy, "Excises are taxes laid upon: "the manufacture, sale or consumption of commodities within the country, upon licenses to pursue certain occupations, and upon corporate privileges; .. the requirement to pay such taxes involves the exercise of the privilege and if business is not done in the manner described no tax is payable...it is the privilege which is the subject of the tax and not the mere buying, selling or handling of goods." Examples of excise taxes are the taxes on gasoline, alcohol, tobacco, firearms, electricity, plane tickets, cell phones, etc. The Fair Tax would encompass hundreds of new taxes on almost everything you buy like furniture, televisions, etc. The Government simply cannot tax everything that it wants. And the Fair Tax claims it would eliminate the IRS. Well, if the IRS is eliminated, then who would enforce the Fair Tax? It's just silly.

Yah! It’s about me me me. I don’t care about what someone else pays. I don’t want to pay more tax than I’m paying now. You charge me 30$ per hundred on everything I buy I’ve got less money to spend.

How about people's selection in picking either Traditional or Roth IRA? Are the Roth people just out of luck?

Not 100% sure if my assessment is correct as I haven’t done the research but hear me out. What’s typically everyone’s largest monthly expense? Housing. Whether in the form of rent or a mortgage, it’s typically housing. I would assume that a mortgage/rent payment is not falling under the good/service and therefore not subject to the 23%. So if you make 10,000/month and pay 3,000 in rent/mortgage and spent everything else on goods and services, you’d be paying the tax on only the $7,000 instead of the full amount. Perhaps another video that reflects this?

I would like to see everyone's face if that gets passed when everything will increase in price because that is exactly what it will do. 30% tax hike on everything. You will be paying 30% more at the grocery store, 30% more for a house, and 30% more for a car. I looked through that bill as soon as I heard about it. Sounds like everyone on here as well as the person that made this video, are in a higher tax bracket than me and other people that I know that are trying to survive off of social security. And if you read all of the bill, the IRS will be defunded! So who is going to make sure the rich pay their fair share? This is the reason Trump wanted to be POTUS, he doesn't want to pay taxes, PERIOD!!! That is why he hides his money in foreign banks. And it will also defund Social Security and Medicare. So if you have a relative in a nursing home, you will have to go get them and care for them yourself. WHY? Because nursing homes are funded totally by Medicare and Medicaid. A lucky few will have insurance to foot the bill. But if a nursing home knows that person has a home and car and savings, you can kiss that goodbye because the state will and can take it. I know this for a fact because that's what I did for 10 years working in a nursing home. Nursing homes are heartless and they want to make money. And if someone can't pay their bill, out the door they go. There is also a video on youtube where a Republican running for office tells a room full of senior citizens that he wants to do away with Social Security. That's what Republicans are looking out for, the rich!!!

This still makes no sense. The employer is not going to give you their share of fica that they pay. They gonna keep their money in their pocket. Consider this if you have no income but you have 1 kid and you try to file taxes the government is not going to send you a check back for 2k. You clearly get the 2k off your taxable income so if it were 15k it would now be 13k Still think you explaining this all wrong

You keep saying it's 23%. It's not. Its 30%.

Ok I think the way you are explaining this makes no sense to do. If you make six figures now and the bill passed you’re still gonna make six figures. To government isn’t going to give you money. They’re just not going to take it. And your employer would not take and give from your check they would give 100% of what you made. But here’s the thing. No one today can live on by not buying a new car or house or new anything else so these people will be paying much higher taxes than me cuz I don’t spend like that.

The bill talks about goods and services. Would internet bills, phone bills, Amazon prime, etc be hit with a monthly 30% tax?

So with the proposed Fair Tax Act would the 23 or 30% apply at the gas pump every time you gas ⛽ up? If so that's crazy 😧, middle class Americans can't afford that. Please tell me I'm not understanding this correctly. If this would be the case say hello to a 30% increase to fill up those rv's, trucks and don't get me started on airfare and price of goods most items are transported in trucks and that 30% would apply there as well. Who ever thinks this is a good idea has not applied this logic to everyday life.

Cherry picked view

Buy used stuff, how does that help the economy. People are buying used cars right now at higher prices due to the chip shortage. If you limit people to buying used everything that will crash the economy. It won’t allow people to buy new goods. The economy will go to shit.

The more I research this the more I like it. But one question I do have is how it effects state taxes?