5th Alabama Congressional District Meeting (Fair Tax)

Three of six Republican candidates for the 5th Alabama Congressional District are supposed to attend. Local FairTax volunteers are working on the other three and the two Democrat candidates as well.

This event does not require an RSVP. Registered users can request event reminders.

snippits from: http://www.factcheck.org/taxes/unspinning_the_fairtax.html

There is no such thing as a Fair tax. What they don’t tell you is a new Chev or Ford will cost over $10,000.00 more in federal sales tax. Plus the state sales tax. If you don’t believe it do the math yourself.

"the bipartisan Advisory Panel on Tax Reform had “calculated that a sales tax would have to be set at 34 percent of retail sales prices to bring in the same revenue as the taxes it would replace,

A new Chevy can cost upwards to $40,000.00, times a least 30% federal sales tax. 12,000.00 plus the $40,000.000 makes a new Chev cost 52,000.00. Add your state sales tax to the $52,000.00. And hold your hat for the Fair Tax lie.

Plus double taxation for the retired.

The 23 percent number in H.R. 25 is the equivalent of the 4.8 percent in the previous example. To calculate the real rate of the sales tax, we have to determine the original purchase price of an item. We can begin with the same $100 item, keeping in mind that a price tag that reads $100 has sales tax already built in. If our tax rate is 23 percent of the tax-inclusive sales price, then of the $100 final price, $23 of those dollars will be for taxes, meaning that the original pre-tax price of the item is $77. To get $23 in taxes on a $77 item, one must impose a 30 percent tax. In other words, a 23 percent sales tax on the tax-inclusive sales price is equivalent to a 30 percent tax on the actual price of the item.

many FairTax supporters (about 15 percent of those who wrote to us, for example) do not understand that the 23 percent figure is tax inclusive.

Even if Kotlikoff is correct that a 31.2 percent rate is revenue-neutral, there remains some reason to doubt that the rate actually would be that low. The FairTax proposal assumes a 100 percent tax base on consumption. By way of contrast, most states that have sales taxes have roughly a 50 percent tax base. With the FairTax’s 100 percent base, consumers would pay taxes on a great many things that may not intuitively seem like consumption. The list would include:

* Purchases of new homes
* Rent
* Interest on credit cards, mortgages and car loans
* Doctor bills
* Utilities
* Gasoline (30 percent in addition to current taxes, which would not be repealed)
* Legal fees

At today’s prices, gasoline would cost almost $1 per gallon more. A $150,000 new home would run $195,000 – plus the 30 percent tax that the buyer would pay on the interest on the mortgage. In short, the FairTax taxes everything that one buys, with the one notable exception of education. Any exceptions to the tax base (for instance, eliminating rent or credit card interest from the tax base) would require an offsetting increase in the rate. We stand behind our earlier analysis of the FairTax. The proposal to which Gov. Huckabee referred is not a 23 percent tax, but rather a 30 percent tax. And it is revenue-neutral only through an accounting trick. It will collect more money from those earning between $15,000 and $200,000 per year and less from those earning more than $200,000 per year. It is possible that the FairTax would make most people better off, but much of that gain would be a direct result of making the tax code less fair." http://www.factcheck.org/taxes/unspinning_the_fairtax.html

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