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Subject:  Re: Another 2015 budget proposal impacting retir Date:  3/25/2014  12:12 AM
Author:  PSUEngineer Number:  74622 of 101513

Not by much. There is discretionary spending, and there is required spending. One would think they would be easily differentiable.

One of the proposed tax systems out there is the Fair Tax which is a federal sales tax. You responded to the earlier post about sales tax with no deductions by saying "not include non-discretionary spending like medical expenses". The Fair Tax includes medical expenses. Now you've created one exception. Someone else might say housing is a necessity of life. So exceptions are added for mortgage interest and rent. Rent is taxed under Fair Tax. Another person says food and clothing is also a necessity. So you pass more exceptions for food and clothing. Then someone objects to the broad addition of food and clothing by saying chips, soda and bikinis are not necessary. So large lists for food and clothing are created defining what is non-taxable (underwear, shoes and fruit) and what is taxable.

Soon the one exception, medical expenses, is expanded significantly to a large list of other exemptions and you then have just as complicated system as we have today.

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