The tax that hammers the retired. Starting with double taxation.
This retired would welcome the FairTax. When all things settled out, there probably wouldn't be much difference in the amount of my tax. But I would be relieved of the obligation of keeping detailed records for years and years and compiling, summarizing and filing a tax return every April 15 that includes intimate details of my financial situation and the charities I help support.
Retirees that have all their assets in cash accounts are in the same situation as an estate. After the assets of the estate have been taxed and accumulated, they are taxed again when the estate is settled. For those with all cash retirement assets, the main benefit of the FairTax would be a general downward drift of prices and no income tax paid on accrued interest (or anything else). Retirees that have their assets in IRA's, 401(k)'s, appreciated stock, etc should have no problem with the FairTax. These assets are mostly untaxed.
I just mentioned several gimmicks that Congress has given us to tweak the income tax. FairTax would make new IRA's, 410(k)'s, long and short term capital gains obsolete, as well as depreciation calculations, tax exempt bonds and dozens of other complicated little gimmicks. To me, much of the advantage of the FairTax is the relative simplicity.
Double taxation is not unheard of with the present system. Estates, as I mentioned, are taxed twice. Taxing dividends is a second taxing of a corporation's profits.
WRONG!!!
You got that right. With the 30%+ sales tax A new Chevy or Ford Will cost you an additional $10,000.00 + out the money you already paid tax on in the past.
They never mention that SS tax started with a tax on, I think it was, 1.5% on $3,000.00. And what Congress conjures up congress can change at their leisure.
When SS was passed there was never to be any tax on your SS benefits. Clinton put the tax on during his watch.
We have all these liberals from DU trying to act like conservatives and they just don't cut it on FR.