Linder makes headway with proposed FairTax

Gwinnett Daily News ^ | April 13, 2004 | Camie young

[ancient_geezer]

Linder makes headway with proposed FairTax
Camie young

As tax day approaches, John Linder says he’s making some headway on the FairTax plan.

The Congressman from Duluth held a press conference with U.S. Sen. Saxby Chambliss earlier this week to talk about the legislation, which would dismantle the Internal Revenue Service and impose a national sales tax.
“The current tax code is ridiculously complex and desperately needs a major overhaul,” Chambliss said. “As April 15 approaches, it’s painfully clear that simply tinkering with the current system is no longer an option. The FairTax is a fairer, simpler tax code that allows every American the freedom to determine his own priorities and opportunities.”

Linder thanked Senator Chambliss for introducing a companion bill in the Senate saying that this marked “a major step toward reforming our broken tax system.”

“I've introduced the FairTax in the last three Congresses and I am more encouraged than ever that we are even closer to making it a reality,” Linder said. “There is a desire to get rid of the intrusive IRS and implement a system that will generate economic growth and help create new jobs.”

[ancient_geezer]

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a pure consumption tax:

H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer: http://www.fairtax.org & http://www.salestax.org

[eyespysomething]

"The current tax code is an 8 million word mess."

"The Fair Tax legislation does not tinker around the edges. It boldly attacks the issue."

Herman Cain, Republican candidate, US Senate seat in GA

http://www.cainforussenate.org

[Bikers4Bush]

As long as it doesn't apply to food I'm all for it.

[Principled]

I'm handing out pamphlets at the post office....
:0)
Fair Tax bump!

[Principled]

Of course you know your food is already being taxed at a 25% clip or so, don't you?

[Blood of Tyrants]

There are literally MILLIONS of politicians, lawyers, lobbyists, accountants, and businesses who thrive from the current system and will not give it up easily (similar to the Sunni Muslims in Iraq who profited under Saddam).

[ancient_geezer]

As long as it doesn't apply to food I'm all for it.

It applies to all goods and services, but provides a monthly payment for taxes up to the povertyline of consumption for all households in lieu of exempting specific articles from the tax.

All legal residents will receive a FCA equivalent to the FairTax paid on essential goods and services. The FCA will be paid in advance, in equal installments each month. The size of the monthly FCA will be determined by the government's Poverty Level for a particular family size, multiplied by the tax rate.

Every year, the Department of Health and Human Services [HHS] determine the "poverty level" for each family size.

The 2001 "FairTax" Family Consumption Allowance Figures
Family Size	HHS Poverty Level	Annual FCA	Monthly FCA
One	$8,590	$1,976	$165
Two	$17,180	$3,951	$329
Three	$20,200	$4,646	$387
Four	$23,220	$5,341	$445
Five	$26,240	$6,035	$503
Six	$29,260	$6,730	$561
Seven	$32,280	$7,424	$619
Eight	$35,300	$8,119	$677

1) Federal Register: February 16, 2001, Pages 10695-10697).

[ The monthly FCA for each adult is .23 * (HSS poverty level for a single person)/12 to assure no marriage penalty due to the manner in which the poverty level is dependant on family size. The monthly FCA for each child is .23 * (the incremental increase of HSS poverty level for a family with one child over no child) ] A. Geezer

A family of four, for example, could spend $23,220 per year free of tax because they will have received over the course of the year rebates totaling $5,341. $5,341 is the amount of sales tax paid on $23,220 in expenditures. A family spending double the "poverty level" or $46,440 per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.

The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.

To illustrate the plan's progressive nature we can examine the tax burden that a family of four will have at various annual income levels (or in this case, annual spending levels).

H.R.25 "The FairTax Act

Not only does every family receive a FCA based on family size, not income, but they will also receive 100% of their paycheck:

Fedup Smith makes $39K per year...once the FairTax is the law of the land he will receive an instant increase in pay of $200.00 per week. Since he has a family of four, he will receive a FCA of $445 per month, for a total of $1,305.00 additional income per month that he can do with as he sees fit

[Salgak]

Sorry, EVERYTHING is taxed. That's what makes it the "Fair Tax": the same rate for everything for everyone.

HOWEVER, everyone ALSO gets a monthly "pre-rebate" of taxes paid on essential goods and services, based on the federal poverty rate and the number of people in your household.

So, let's say you're a family of 4, and make $50K.

The poverty level for a family of 4 is (pulling answer out of my butt) $12K. So you'd get a monthly pre-rebate check for $230. (12K/12 months = 1K /month income, assumed all is spent on essentials, 23% of 1K = $230/month "prebate". . . )

[Bikers4Bush]

Not in Ohio it isn't, unless of course you're referring to some hidden tax.

[ancient_geezer]

There are literally MILLIONS of politicians, lawyers, lobbyists, accountants, and businesses who thrive from the current system and will not give it up easily

OTOH, there are TENs of Millions of taxpayers and voters who despise the income tax and IRS.

Nothing ventured, nothing gained.

Taxes & Government Spending:

• "The income tax in effect makes us vassals to the government – the politicians decide how much income we can keep. No mere “reform” of this slave tax, such as flattening the rate, can correct its fundamental denial of control over our own money. Only the abolition of the income tax itself will restore the basic American principle that our income is both our own money and our own private business - not the government's."

• "Replacing the income tax with a national sales tax would rejuvenate independence and responsibility in our citizens. True economic liberty and moral revival go hand in hand."

• "A national sales tax would also put the American citizen back in control of national fiscal policy. The best way to curtail government spending is to cut taxes, because they can’t spend what they don’t get. But with a sales tax, we could deny funds to a spendthrift government – and give ourselves a tax cut – whenever we make the private choice to alter our spending and saving habits."

[Bikers4Bush]

Well then I'm against it. Food should not be taxed.

[Blood of Tyrants]

Corporations don't pay taxes, they collect them from their customers. Corporate taxes of all types are hidden in the price of everything you buy and passed on to you as a cost of doing business.

[Blood of Tyrants]

because they can’t spend what they don’t get

I hate to burst your bubble, but they simply borrow as long as anyone will lend it to them.

[Bikers4Bush]

Unnacceptable, this is just another tiered tax strategy and it is not fair at all.

All goods and serviceds with the exception of food should be taxed. That would be fair.

This plan makes exceptions, that makes it not a fair tax plan at all.

[meadsjn]

There are literally MILLIONS of politicians, lawyers, lobbyists, accountants, and businesses who thrive from the current system and will not give it up easily (similar to the Sunni Muslims in Iraq who profited under Saddam).

In that case, send in the Marines.

[ancient_geezer]

Not in Ohio it isn't, unless of course you're referring to some hidden tax.

The following article covers the mechanism on how the current Federal tax system propagates and is embedded into consumption expenditure.

DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation

The full impact of the federal tax system(taxes in gross wage/salaries & other compensation + business income/payroll taxes) added onto the base price(without taxes) of retail consumption goods and services is 36% for federal taxes alone. Why? Because all income and the taxes on it is paid for out of sales receipts to business,(i.e. consumption expenditure).

[ancient_geezer]

Well then I'm against it. Food should not be taxed.

DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation

[Bikers4Bush]

Well I pretty much figured that part out it goes for all items when you think about it, what I'm talking about is a sales tax at the register.

[Protagoras]

Food should not be taxed.

No sales tax on food in your state? There is in most states.