Fair Tax Act 2023: Is this really fair?

/////////////////////////////////////////////////
Get answers FASTER...
Join this channel to get access to perks:

Chat on discord:

Support on Patreon:

-----------------------------------------------------

Our financial planning process is an ongoing relationship because as you grow, your financial plan grows with you. At Sickle Hunter Financial Advisors, we believe that saving and making sound financial decisions will help improve your life’s changing needs and objectives. Retirement, college planning, wealth building, social security, and career benefit packets are only a few of the financial decisions that you may face in your lifetime and we’re here to help guide you.

TRAVIS T SICKLE, CFP®, EA®, AAMS®, CRPC®, RICP®
CERTIFIED FINANCIAL PLANNER™

twitter: @travissickle

Sickle Hunter Financial Advisors
1646 W Snow Ave.
Suite 144
Tampa, FL 33606
-------------------------------------------------------

Partnership referral links

All Amazon links are affiliate links
____________________________________________________________________________
Information in this video is for educational and entertainment purposes only.
____________________________________________________________________________

#travissickle

[bradkohl]

I would only back this if we get a UBI and Switzerland's Health Insurance Mandate Style System to get Universal Healthcare in this country. By law you have to use a percentage of your UBI to buy your own Insurance. If we got these two policies I would back The Fair Tax Act in a heartbeat!!!

[aaronhughson]

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.

[Jason-hhmq]

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.

[GTRx]

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.

[buster]

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.

[williamfraleyiii]

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

[jimsteele]

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

[STB]

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!

[MGBDCM]

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?

[kennethholifield]

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

[truross]

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

[bradkohl]

No they said it was 23% did I miss something?

[ewetyube]

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.

[robinalford]

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!!!

[Nareimooncatt]

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.

[freenow]

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.

[joshhoward]

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.

[Anna-kxdl]

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?

[underground]

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

[NWOslave]

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.