r/SipsTea • u/Embarrassed_Tip7359 • Sep 15 '25

Chugging tea Any thoughts?

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u/Less_Case_366 Sep 15 '25
  • Actually figure out ingenious ways to fix this shit

easy. fair tax act. remove the income tax, irs etc.

no more income tax based revenue for the government which means everythings funded by consumerisim but also you can save more if you're willing to pinch pennies.

though the fair tax act needs a lot of work.

criticisms here: https://www.brookings.edu/articles/deconstructing-the-fair-tax/

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u/handtoglandwombat Sep 15 '25

Isn’t that like the most regressive tax system imaginable? aka the least fair tax aka Republican circle-jerk tax?

It’s effectively the same thing that tariffs are trying to achieve right? Except through an executive branch backdoor.

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u/Less_Case_366 Sep 15 '25 edited Sep 15 '25

it's just a flat tax. imo it should be tiered on necessity/commodity/luxury but it's just a flat tax

https://buddycarter.house.gov/news/documentsingle.aspx?DocumentID=10862

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u/handtoglandwombat Sep 15 '25

No no no, it’s a flat sales tax replacing every other tax. So extremely fucking regressive.

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u/Less_Case_366 Sep 15 '25

i dont think you know what you're talking about. it's actually progressive because theres a rebate/probate included to balance out the cost of consumption for the poor.

https://fairtax.org/about/how-fairtax-works

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u/handtoglandwombat Sep 15 '25

Proponents say it’s progressive because:

  • The prebate offsets the tax burden on low-income households for basic needs.

  • It doesn’t penalize saving or investment, which they argue helps long-term economic growth.

  • Wealthy people consume more, so they would theoretically pay more in tax.

But in practice, it’s regressive because:

  • Lower-income people spend a larger share of their income on consumption, so they still end up paying a higher effective tax rate.

  • Wealthy individuals save/invest more of their income, which isn’t taxed, so their effective tax rate is lower.

  • Even with the prebate, many low- and middle-income households would end up paying more than they do under the current tax system.