Forum Post: Tax exemption for poor on flat tax rate
Posted 13 years ago on Oct. 25, 2011, 9:43 a.m. EST by fraudstreet
(3)
from Staten Island, NY
This content is user submitted and not an official statement
If a flat sales tax rate is initiated, we need a limited tax exemption card for the poor and low income elderly. Without this this would kill the poor which is possibly the intent?
What we really need to do is end The Federal Reserve. The real tax on the poor is inflation, and The Federal Reserve does nothing but create more and more of it.
That is normally how flat taxes are proposed - with a built in prebate (pre + rebate) amount to make it zero tax to the poor.
In MA, we have a sales tax that is exempt for necessities, such as groceries and clothing. That way you can get by without paying sales taxes if you are so poor that you need that kind of a break. If you have enough money to buy luxuries you have enough money to be taxed.
Yes there has to be a means test at some level.