[ancient_geezer]

There is no way that you can ID those that make too little, and exempt them from the tax,

Don't have to:

 

All legal residents will receive a demogrant called the Family Consumption Allowence(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 paid to all households regardless of income or actual expenditure.

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 examine the tax burden that a family of four will have at various annual expenditure levels as compared to that same family under the current system:

 

H.R.25 "The FairTax Act

[baseball_fan]

I had never heard of the FairTax before. Adding it to Wikipedia, the online encylopedia under the tax area, might make it easier to understand systematically, give it more visibility, and allow its comparison with other tax alternative methods. There are more than a million articles posted there now, so it is becoming quite a resource. Here is the tax area:

http://en.wikipedia.org/wiki/Tax

[bigeasy_70118]

I'd really like to support a national sales tax. But this proposal is insane. The idea that the government is going to mail a tax rebate check every month to every American family seems so replete with the opportunity for malversation by the democrats.

Furthermore, I think as soon as Hillary begins her reign in 2008, the 30% rate will go up at least another 15%.

[Final Authority]

I loved it when Keyes tried to explain the goals of the so-called FairTax in a debate with Obama the othe day and did indeed suggest that one of the benefits of the tax is that there would be a guaranteed income for the lowest on the economic rungs.I did not know that Keyes was a socialist but he surly was playing one the other night.