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To: HitmanLV

You are focusing on the existing savings and ignoring the future of that savings and your ability to save faster under the FairTax.

Look at $100K existing savings, where you are able to add $5K each year under the PIT but would be able to add $10K each year under the FT.

In 5 years, the PIT would leave you with $165K if it earns 10% and then you pay a 25% PIT. The FT would leave you with $225K at that same 10%.

Since FairTax inclusive prices will be 115% of the old prices, you just got a great deal. Instead of being able to buy $165K worth of 'stuff' you'll be able to buy that same stuff for $144K, pay $44K in FairTax, and have another $37K left over to spend on more 'stuff'.

Only under very special conditions -- like Roth IRA's -- where there would be little/zero PIT owed, or you have no time left for the savings to grow, does the FairTax hurt your existing savings.


74 posted on 05/15/2006 1:08:53 AM PDT by Kellis91789 (I don't make jokes. I just watch the government and report the facts. --Will Rogers)
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To: Kellis91789; HitmanLV
In 5 years, the PIT would leave you with $165K if it earns 10% and then you pay a 25% PIT. The FT would leave you with $225K at that same 10%.
$225 minus 23%(current teaser rate) = $173,000 to spend and if the "basic rate" was 4% you'd pay an additional 30% tax on the remaining 6% earned...Yes there would be a sales tax on some interest earned AND or paid not to mention the new 30% tax on any bank fees.
79 posted on 05/15/2006 4:17:41 AM PDT by lewislynn (Fairtax = lies, hope, wishful thinking, conjecture and lies. (no it's not a mistake)
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