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To: lucysmom
Does the FairTax calculator say what your tax rate will be if you get laid off

That bring up an interesting point about 'the effective fair tax rate'. If I am a retiree with very little income, but lots of savings, my 'effective fair tax rate' could easily be 3000%! The fairtax calculator assumes I can only spend what I make, not what I save. Another fraud of the fairytax calculator.

403 posted on 10/22/2006 7:25:59 AM PDT by Always Right
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To: Always Right
Shhhh! You're not supposed to notice. Look at the prebate!
404 posted on 10/22/2006 8:19:52 AM PDT by lucysmom
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To: Always Right
"That bring up an interesting point about 'the effective fair tax [sic] rate'. If I am a retiree with very little income, but lots of savings, my 'effective fair tax rate' could easily be 3000%! The fairtax [sic] calculator assumes I can only spend what I make, not what I save. Another fraud of the fairytax calculator."

You're mistaken once again, Always Right. the calculator makes no such assumption. If there's a problem relating to that it's with the "nut that holds the wheel" - not the calculator.

As to your questionable "example", that's merely more hype as such a percentage could only happen with considerable difficulty and only if your "retiree with very little income but lots of savings" had such big-spending habits he deserves to pay the tax on that consumption. If his "very little income" were, say $5,000 per year, your inflated hype would have him spending $150,000 per year. He'd be foolish, indeed to do that - and that's even ignoring the prebate he'd receive. But, hey, it's his money and the FairTax gives all the freedom to blow what they have if it pleases them.

He'd do much better following the path that most would take which would be to invest his savings and spend some part of those receipts together with his other "very little income" since it's all tax free income and build his "savings" even more. He could certainly do quite well that way. You also undoubtedly haven't considered the effects of his normal spending in reducing his effective FairTax rate either. All in all, not too convincing.

413 posted on 10/22/2006 9:14:26 AM PDT by pigdog
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