Posted on 09/11/2006 2:38:16 PM PDT by witchypooy
FAIRTAX CALCULATOR
www.fairtaxcalculator.org
Do you have questions on what FairTax will cost your family? Have doubts about it's progressiveness? Worried it will place an unfair burden on the poor, the middle class, the young or the seniors?
Time to put the hype aside and stop listening to all the spin. Why not just find out exactly what FairTax will mean to your own personal bottom line? It's easy. Just go to the FairTax Calculator, input your gross income. Approximate your 8 "fair tax deductions" which represent your yearly tax free spending. Give your family size to determine your "monthly prebate". In 10 easy lines the fairtax calculator will calculate for you just what you would pay annually in FairTax considering your spending habits and number of dependents. The calculator will show your net effect annual FairTax percentage rate, the dollar amount of fairtax you would pay on your income, and the amount of your family's monthly fairtax prebate under HR 25.
No one will pay 23% net effective annual rate because of the prebate factor. Actually, many will pay well under 15%, while MOST will see a reduction in taxes over what they pay today for income tax plus 7.65% social security taxes. More importantly, by personally controlling one's own spending/savings habits, ALL will have more control over the amount of sales tax they pay, effecting what their own bottom line FairTax rate will be. ALL will see the IRS out of their personal life, and freedom and privacy restored!
Exact figures are not needed. Approximations will give you a very good picture of the Fair "sales" Tax system's effect on your personal tax burden. Then, just take these FairTax figures and compare them to your current income tax bill to the IRS, using your pay stubs showing current withholding, or last year's Income tax figures (income tax + Social Security FICA withholding). Then if you like, you can also figure a FLAT 24.65% on your annual income to determine what you would pay in tax under any of the current Flat Tax Proposals (17% income tax + 7.65% FICA social security). Isn't FairTax less complicated than the current IRS income tax? Wouldn't FairTax be less costly to you than any proposed "Flat Tax"?
Young, old, retired, unemployed, self employed, student. No matter who you are or what situation you are in, there is a good chance that your bottom line under FairTax will be smaller. How? By broadening the tax base and taxing ALL those spending money in the U.S., including legal and non legal residents, the underground economy, those earning a living through criminal activities, those currently evading taxes, those using loopholes to avoid taxes, those tourists using our services. When all pay, the burden for each of us is lowered. That's the "fair" in FairTax.
Put your doubts aside. Take the time to check out the FairTax Calculator. It's easy, it's fast, and it's totally anonymous! All hype aside, the numbers show the true story so you be the judge.
Check it out!
Marlene
fairtaxsupportpa@aol.com
Pittsburgh
FAIRTAX IS MORE FAIR FOR SENIORS AND THE POOR THAN ANY OTHER TAX SYSTEM
Fair Tax is a "system" of taxation and is not done in a vacuum. You cannot look at one item, you must look at the overall big picture. This is what the fairtax calculator is for.
Try putting some low income figures into the calculator and don't forget to put married 2 for a senior couple in the prebate. If you use $30,000 or less income, I think you will find they will pay almost 0 in taxes since most of their money will be spent under the "prebate tax reimbursed" number. Seniors aren't buying big purchases, they already have most of what they need.
Also, what most don't consider, if a senior couple makes more than $40000 a year today, they are paying income taxes on their social security and pensions and capital gains taxes today. But under FairTax they would NOT be paying any taxes on their "income", so these taxes are a savings for them. There is also no gift or estate tax under FairTax. This is why whether poor, middle income or rich Seniors....most will see a reduction in their taxes NOT an increase under FairTax.
Regarding the poor: I highly doubt if a poor person as you speak of would be buying an expensive new car. Most likely they will buy a used car and pay 0 tax. The prebate will cover the taxes on their living necessities of which a refrig would probably fall depending on their other spending habits. Any used home will be purchased tax free also, not true today under the mortage taxing on principal we all labor under today.
If you have $25,000 a year to spend, most of that $25, 000 will be spent on necessities therefore fall under their tax prebate...bottom line the poor will pay close to 0% in tax. The poverty level for family of 4 is $25,000 so for this family income level they would get a prebate to cover taxes on ALL their spending, making their net tax 0%.
Today the working poor cannot get lower than 7.65% net rate because that is what they pay into FICA if they are working and they don't get that back. This is why so many choose not to work. It doesn't pay to labor. But FairTax allows them to reach 0% tax depending on their spending/savings as FICA taxes are eliminated also. The current income tax system never allows the working poor to go below 7.65%. Today the poor cannot save a penny for a down payment on a house or car without paying tax on the funds they save first. Under FairTax the poor can save what they can, possibly from a 2nd job, but save it totally tax free, in order to buy their way out of poverty, gain property, and provide a better life style for their family. Savings is NOT taxed as a new good or service.
FairTax is the MOST progressive tax that has ever been considered in congress. The current income tax is less progressive than you think with all the loopholes and tax avoidance available. The Social Security FICA tax system is the most REGRESSIVE tax against the poor that has ever been devised in the world, taxing the poor at 7.65% while taxing those over $92,000 in income a less and less net effective tax rate as their pay goes up, as they pay nothing on that portion of their income over $92,000. It is without understanding that liberals today who pretend to care for the poor, will fight to the death to maintain the regressive social security taxing system that charges the poor a greater percentage (%) of income than the rich.
Marlene T.
witchypooy@aol.com
The poverty level for family of 4 is $25,000 so for this family income level they would get a prebate to cover taxes on ALL their spending, making their net tax 0%.Show my how a family of 4 can get $25,000 worth of stuff tax free under the FairTax.
I apologize, I thought you were blaming the IRS for your troubles.
Wow! What a story. I hate the IRS, and every time I deal with them I literally feel like throwing up because they are so abusive and irrational.
My sister ended up nearly getting a lien put on her assets because of $51 they said she owed them - which she did not, of course. It was actually a numerical error the IRS had made, they said they had corrected it, and then they announced out of the clear blue that she was in arrears and they were going to slap her with a lien. For their addition error!
Dealing with them makes you feel like you're losing your mind. It's all circular, you can never make any progress and you always find you are back to the very point you started from.
I'm glad you're almost out of their clutches. I have another $16,000 to go, and maybe I'll finally get caught up. Sometimes I wish I had never started to work for myself - I like being independent, but they tax you so punitively and deal with you so harshly you really wonder if it's worth it.
Umm-- It's about what we pay in taxes right now. That's with SE tax.
Oh forgeeeet it! That was what brought me into that mess in the first place, they thought I cheated on my taxes, and I had to hire lawyers and go through absolute hell. Finally they agreed that I didn`t after they checked out my accountant who was pulling all this crap to get people huge refunds. What saved my ass was I immediately returned the refund once I got it, once I found out what this psycho did, otherwise I`d probably still be locked up. Oh yeah, and get this...After I found out about it, she was telling me "oh don`t worry, they never check, I`ve been doing this for years and they never audited me.." Can you believe that? Granted I alerted the IRS, but can you imagine if I listened to her and the IRS found out by themselves? Forget it! i`d still be in jail right now. If there is the sliiightest chance of going to prison, I don`t give a damn how safe and secure something seems, I never in a million years will take that chance . I`ll be damned if I spend years in a cage. Look at that idiot from the TV show Survivor... He wins a million bucks and doesn`t report it. Now he`s doing 10 years in a cell. Lot of good that money is to him now.
$25,000/12 = $2,083 per month prebate. Easy. No annual out of pocket expense for the poverty level family of four.
And bake income taxes into the sell price either. It is stooopid for corporations to pay taxes. The consumer is always the ultimate customer.
$25,000/12 = $2,083 per month prebate. Easy. No annual out of pocket expense for the poverty level family of four.Not so easy. The "prebate" would be 23% x $25,000 / 12 = $479.17 for the monthly prebate.
$25,000/12 = $2,083 per month prebate. Easy. No annual out of pocket expense for the poverty level family of four.LOL! Who said it wasn't an entitlement?
$25,000/12 = $2,083 per month prebate.Principled is that you?
BWAHAHAHAHAHAHAHA!!!
I tried the calculator and it says:
"taxable income left to spend 0."
In other words I get nothing while I have to pay like $180 to the government.
Seems this type of tax is not amiable to to low income taxpayers.
No, that really does make sense. That means your effective FairTax rate will be 10.7%. the continual claims that the FairTax will tax "everything" at 23, 29.87 or even 30% asr completely untrue. It is as the lead-in article says - most will have a lower effective tax rate (and greater purchasing power) than at present.
The truth hurts sometimes, Nightie.
There's even one poster who'll telly you there's "nothing inherently wrong with an income tax" so I guess he'd probably say you made that all up I'll bet.
Seems to me that your gruesome tax rings all too true.
Not anymore.
The real facts aren't important to yeou, eh?
The guy who's giving you such "sympathy" is a massive fan of the present system as you'll see.
Even the FairTax opponents have stipulated this extra cost or hidden tax or embedded tax amounts to 9% so that means that not only will the prices of things drop under the FairTax (prior to imposing the tax) but your effective FairTax rate will be much less that at present and you'll end up with greatly increased purchasing power as many comparative studies have shown on these threads.
Falling for the favorite claims of the FairTax opponents that "everything will be taxed at 23%" (or 29,87%, 30% or more) is simply NOT true. Your purchase price at the cash register will be the item price plus the FairTax marginal rate (23% tax inclusive) but Uncle will be in effect standing right there with the prebate and what the item actually COSTS you (the amount out of your pocket) is the price of the item plus the effective rate (and not the marginal rate). Just as with he income tax the effective tax rate in a given year is what actually comes out of your pocket and so it is with the FairTax.
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