Posted on 10/19/2006 5:11:50 PM PDT by pigdog
As specified in Congressional bill H.R. 25/S. 25, the FairTax is a proposal to replace the federal personal income tax, corporate income tax, payroll (FICA) tax, capital gains, alternative minimum, self-employment, and estate and gifts taxes with a single-rate federal retail sales tax. The FairTax also provides a prebate to each household based on its demographic composition. The prebate is set to ensure that households pay no taxes net on spending up to the poverty level.
Bill Gale (2005) and the President’s Advisory Panel on Federal Tax Reform (2005) suggest that the effective (tax inclusive) tax rate needed to implement H.R. 25 is far higher than the proposed 23% rate. This study, which builds on Gale’s (2005) analysis, shows that a 23% rate is eminently feasible and suggests why Gale and the Tax Panel reached the opposite conclusion.
This paper begins by projecting the FairTax’s 2007 tax base net of its rebate. Next it calculates the tax rate needed to maintain the real levels of federal and state spending under the FairTax. It then determines if an effective rate of 23% would be sufficient to fund 2007 estimated spending or if not, the amount by which non-Social Security federal expenditures would need to be reduced. Finally, it shows that the FairTax imposes no additional real fiscal burdens on state and local government, notwithstanding the requirement that such governments pay the FairTax when they purchase goods and services.
(Excerpt) Read more at people.bu.edu ...
What a dream, eh?
It is as I said, the prebate is a rebate, not an entitlement. The fact that you (or the Tax Panel) can't use a dictionary is your problem, not mine.
I have an unqualified right from my creator. Stuff it.
Hence the advertised "greater progressivity". More commie sh*t.
This doesn't help see what your tax situation would be under the FairTax an apparently you don't wish to use the calculator for some reason.
Is the above a correct description of what you're said? If so, what would you consider to be a comfortable amount of money to spend over the next 20 to 30 years? Are you married? With/without children? Do you have any other income after you retire? If so, who much - or is it only S/S?
Did you notice that it was your quote I responded to? If you want to keep the discussion focused on the FairTax, then don't derail it.
You're known for lying frequently.
The so-called "prebate" monthly entitlement check would have nothing to do with what the recipient would actually pay in "Fair" taxes.
Really? Who was the quote from that I cut and pasted?
A Karl Marx wet dream.
Now who's attacking whom?
I realize that a big, difficult concept ... but try to understand!!!
That's merely another of the FairTax bashers (one of your bedfellows) attacking me ... but I thought you knew that.
So go try your "momma knows best" trash someplace else. I didn't discuss the income tax - you did.
Which quote and which cut and paste do you refer to?
No, we just point out what an obnoxious little whiner you are.
The tax consequences of government policy are of great concern to me, as it affects my ultimate real return greatly. It is quite enticing to a trader's mindset to obviate trading profits, I would like that - no taxes on selling, but I would not like the trading gains I've achieved to be taxed again, and then at a retroactively imposed, absurd rate, I would not like that at all. I would certainly not take the capital risks I currently take, and would withdraw from the US market in quick time. Why the hell invest in the US when emerging markets are returning at least twice the return of that in the US, albeit at a higher political risk - unless it is for safety and consistency of policy.
Should the US government impose or introduce or even threaten to employ 3rd world inconsistency on investment returns - it will ultimately achieve 3rd world results.
As I said, I asked you for no quotes.
Oh, I see ... the attacks are fine so long as they are directed at a FairTaxer but not the other way around ... very interesing. Sort of a unilateral bash-fest, eh?
A retroactively enacted tax on accumulated assets - a commie wet dream, I like that.
Yep, that's the invented word used by the NSRT cultists to misrepresent their entitlement scheme.
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