Originally Posted by Hands Sandon
I suppose WalMarts upped it's pricing so much because it's paying very close to the full corporate tax rate?-
"Before taxes, the world's largest retailer banked $22.1 billion in profit. After deductions and factoring in its international operations, the company still paid just under a third of that back in taxes to various governments.The federal tax rate for corporations is 35%. Wal-Mart's effective income tax rate came in just under that, at 32.4%"
So Wal-Mart should pay 32.4% in taxes? Really? A THIRD?
The Uk has VAT (value added tax) and an income tax. VAT is at 20%. Add just 3% for your unbelievably titled "Fair Tax" and you'll have to massively cut programs... you know, like defense and education, healthcare etc whilst making the poor and middle class pay a much higher percentage of their income in taxes whilst the rich pay a much much lower percentage of theirs in taxes.
Can you prove that in some way? Remember that almost half of our population pays nothing in taxes now. They cannot avoid them under the Fair Tax system.
As for how much income goes to taxes, I agree. But remember, all withholding would stop. Someone grossing $2800 a month and bringing home $2000 a month would immediately start bringing home $2800 a month (or close to it). That's just one advantage. One of the others is that the tax cannot be avoided. I don't think you're really getting into the numbers here. The poor and middle class would be better off and could decide where to put their money.
Like the info from posts above shows, the bottom 50% income earners in the US currently pay just 2.5% of their income in taxes. Do you think they save much? Nope they don't. They spend what thy have and often get into debt too. The rich on the other hand invest, save and many lavishly live, but that expenditure is a small piece of their income.
The 2.5% number is debatable, though I do take your overall point. The problem we have is that nearly 50% of all Americans pay nothing in taxes. How can that be? Imagine the lost revenue.
The rich would do great, the middle and lower would suffer, the debt would never be paid off and the economy would TANK.
Correction: the average income tax rate is about 2.5% for the lowest 50% income earners according to the earlier posted figures. The total tax rate for that group is somewhere around 10%. That's more than half yhe 23% figure of the "Fair Tax" and obviously the poorer ones in that group will pay even less of a percentage.
Yes, but with the Fair Tax, they don't automatically pay. They only pay on what they purchase. In that vein, we could exempt certain necessities like food, clothing and shelter. I disagree that the economy would tank and that middle and lower income brackets would suffer. If I plug in my own numbers, the results are astoundingly positive. And I am upper-middle income.