We are not claiming that, we are telling you that for the 1000th time. The 23% rate is fixed by the bill only for the year 2007. The GRR rate is fixed by the bill indefinitely. The Social Security Administration determines what happens to the other rates in the following years based on some formula. Those rates WILL change every year and thus so will the COMBINED FEDERAL TAX RATE. You have been told this numerous times, so it is probably worthless to tell you again. Here is all the applicable sections that were posted to you on post 331:
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(b) Rate-
`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.
`(2) FOR YEARS AFTER 2007- For years after the calendar year 2007, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service.
`(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--
`(A) the general revenue rate (as defined in paragraph (4), and
`(B) the old-age, survivors and disability insurance rate, and
`(C) the hospital insurance rate.
`(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.
`SEC. 904. TRUST FUND REVENUE.
...
`(d) Old-Age, Survivors and Disability Insurance Rate- The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.
`(e) Hospital Insurance Rate- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.
What you seem to be saying is that there is a provision to automatically decrease the tax rate (the 23%) since with increased economic activity the proportions of the two entitlements will fall causing an automatic lowering of the 23% rate since the 14.91% GRR is fixed in the bill. If you'd like to argue otherwise - have at it.
Also, if you believe that Congress would sit still for an automatic lowering of the FairTax rate (or of a corresponding change in the GRR) without their action then I think you're kidding yourself. Congress is charged with the money raising task by the Constitution and they certainly won't punt and hand that over to "unelected bureaucrats" as you claim.
So tell me, what is it you think will happen with the FairTax rate with the percentages for both S/S and M/C decreasing??? By the logic you've presented so far, your answer would have to be that the FairTax rate would automatically decline. Do you genuinely believe that???