Posted on 04/04/2006 2:17:28 PM PDT by Eaglewatcher
The FairTax (HR 25 in the US House and S 25 in the US Senate) is a federal retail sales tax that replaces the entire federal income and Social Security tax systems, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
More FairTax benefits:
No tax on used goods. No tax on business inputs. With the FairTax, if you choose to buy any new good or service, the sales tax is charged just as state sales taxes are computed today. If you choose to buy used goods - used car, used home, used appliances - you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no FairTax. So, in deciding what to buy, you get to choose whether or not you pay the FairTax.
No federal sales tax up to the poverty level means progressivity like today's tax system. Furthermore, to ensure that no American pays tax on necessities, the FairTax plan provides a prepaid, monthly rebate for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?
All Americans take home their whole paychecks. Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks. Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay. Did you know that hidden income taxes and the cost of complying with them currently make up 20 to 30 percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices - from 20 to 30 percent higher than they would otherwise be - for everything you buy.
Tax criminals - don't make criminals out of honest taxpayers. Today, the IRS admits to 25 percent non-compliance with the code. However, this does not take into account the criminal/drug/porn economy, which conservative estimates put at one trillion dollars of untaxed activity. The FairTax taxes those engaged in the underground economy capturing their income at the cash register. The substantial decrease in points of compliance - from every wage earner, investor, and retiree, down to only retailers - also allows enforcement to concentrate on following the money to criminal activity, rather than making potential criminals out of every taxpayer struggling to decipher the code.
The income tax exports our jobs, rather than our products. The FairTax brings jobs home. Most importantly, U.S. exports are not burdened by the FairTax, as they are with the current income tax. So the FairTax allows U.S. exports to sell overseas for prices 22 percent lower, on average, than they do now, with similar profit margins. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation in U.S. manufacturing sectors. At home, foreign imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries' value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.
YOU are in charge! The FairTax moves us from a system that taxes what we earn to a system that taxes what we spend. Under the FairTax, you control your tax liability, not the government. The FairTax puts "we the people" in charge of our money, and puts us all on the path to economic freedom!
To enact the FairTax and unleash the full economic potential of the U.S., we must apply Vocal and Persistent pressure on Congress each week.
Email, call or fax your members of Congress today. Send them this simple message: "Please support replacing the federal income tax code and become a co-sponsor of HR 25 or S 25, the FairTax."
(12) Taxable employer-
`(A) IN GENERAL- The term `taxable employer' includes--
`(i) any household employing domestic servants, and
`(ii) any government except for government enterprises (as defined in section 704).
`(B) EXCEPTIONS- The term `taxable employer' does not include any employer which is--
`(i) engaged in a trade or business,
`(ii) a not-for-profit organization (as defined in section 706), or
(iii) a government enterprise (as defined in section 704).
Reference: H.R.25
Note the exceptions are any trade or business that has employees. lewislynn wanted it to look like almost everybody was being taxed rather the miniscule category of household servants.
You intended for the reader not to read the EXCEPTIONS because it contradicts you. In other words, your intent to deceive the reader has backfired and you exposed yourself a fraud.
Side note: It's obvious why you didn't provide a source link to H.R.25. It would be too easy for the reader to check your veracity, or, as is the case, lack thereof.
You are sooo easy. Read my tag line. It is spot on target.
Pigdog started responding to dozens of comments around post 310 to three days old comments and most of his arguements [sic] were void of any substance.
How old the comments are a person responds to is irrelevant and you know it. So typical of you to make something out of nothing. pigdog's arguments were on topic and IMO of substance -- they certainly were on topic whereas Shalom Israel's comments to pigdog were definitely off topic. And, Shalom Israel's posts to me were personal attacks. You had no comment about his personal attacks yet I think it safe to assume that you think those personal attacks are as acceptable, if not more so, than his off topic posts.
Or yours.
No, I did not.
I have no idea what you mean by that.
That's exactly what I have been saying about yours.
We need to get realistic about this.
Yes, we do. Compromising with those that have usurped authority is not a solution. Rather, it extends the problem. Akin to voting for the lesser of evils -- it always begets evil. The FairTax is not a compromise. It is the first step in route to the people retaking control of the federal government.
A fair tax will never never pass. It has too many opponents, IE democrats and AARP,
Usurped authorities.
and way too many chances of complete failure.
Because it doesn't play the bogus authorities' rules?
You might end up with income tax and sales tax,
That can happen right now. The FairTax eliminates the income tax and abolishes the IRS, the muscle.
and there's is a huge chance that democrats will raise the prebate, effectively making this a high income only tax.
chance, chance chance. It's not huge, its tiny. Once the people mobilize to demand the FairTax and get it they will be invigorated to never again rest on their laurels. In this fight to take back the government this first battle will be the most empowering.
I propose a flat tax. Almost Everyone pays 15% on their gross minus the poverty level income. Then we find an objective mathematical formula for what the poverty level is. This would make the system fair and cut taxes by a huge percent. This is also much easier to pass than the fair tax. You could market this to the masses by telling how you pay your fair share, and it doesn't matter how good your accountant is.
How far along are you on your proposed flat tax "plan"? What is the bill number in the House and Senate? I notice your proposed "plan" keeps the IRS muscle. The IRS turns justice on its head by deeming its victims guilty until proven innocent.
You are correct, it is a complete failure, as proposed, in that it will promote a criminal black market, provide incentive for government to increase the cost of goods, double tax many Americans and necessitate an enormous increase in government in order to ensure compliance.
Yeah, that's it.
There are a half dozen nay-sayers here like you who are the truly enlightened and the rest of us are all blind and out for ourselves.
Large numbers alone do not make us right, but there has been hundreds, if not thousands, of discussions here and the 6 of you have failed to make your case. You project fears, protect narrow self interests, or argue for 'no tax' at all but you can't refute the truth.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Amen. Thanks.
Note the exceptions are any trade or business that has employees. lewislynn wanted it to look like almost everybody was being taxed rather the miniscule category of household servants.Note that the exceptions don't include governments! Governments would be paying the FairTax on the wages of their employees (which is the point lewislynn was trying to make). This means your statement that "the FairTax (H.R.25) explicitly taxes only retail goods for consumption" is false.
Shalom's personal attacks were over the top, but those were several days old. Most of his recent posts were just off-topic posts to responds to anal comments from pigdog. Let's look at some of pigdog's comments, and the 'substance' they contained.
pigdog post 310: Nonsense, Finial. You've had it pointed out several times that the prebate is not a "guarantee" of anything, but is a refund of part of the taxes you'll have paid. Just like your April 15 tax refund presently.
A person/family qualifies for a prebate by being a citizen and applying. To say that it is a refund for taxes you'll have to pay is a lie. You get it no matter if you pay taxes or not.
pigdog post 312: Hi, Rightie. I see that you persist in you old, shopworn tactic that anyone in favor of the FairTax is a lian and thief - and has bad breath to boot. You may actually sucker a few who are uninformed and can't read into falling for that, but for the most part you're losing your battle to protect your little income tax niche.
Not even a hint of substance here, just personal attacks. You wouldn't even know that pigdog is attacking me for stating a well-founded truth, that Jorgenson's embedded tax number included taxes paid by the employee. Pigdog has no response to that often repeated lie by fairtaxes, so he just attacks and offers zero substance.
pigdog post 313: Sorry, Finial, it's no dole. It's a refund of some of the taxes you've paid.
Now pigdog repeats the same lie of 310 to bump the thread nonsensically.
pigdog post 316: In fact, Rightie, most people will be better off with respect to disposable personal income under the FairTax.
Pigdog ignores my comment about those with savings and fixed incomes will lose purchasing power. I agree, most will be better off, but not the ones I specifically pointed out. Just another pointless comment to shill for the fairtax and bump the thread.
pigdog post 317: Almost entirely rong Rightie. Savings are not taxed by the FairTax - consumption spending (or some part of it since not everything is taxed) is taxed. Savings & any earnings thereof remain untaxed. At present, whenever you buy something using tax or untaxed savings you still get nicked with the taxes embedded in prices since there's no free lunch, poddner!
pigdog making false claims. No where did I ever say savings are taxed by the FairTax.
pigdog post 318: You should talk to more people, then, and urge them to investigate what happens with the FairTax by visiting the FairTax website which has a wealth of economic data: http://www.fairtax.org/research.html Or get them a copy of The FairTax Book to read. Don't merely let them stick their heads in the sane like an ostrich. Help them learn.
Typical pigdog response. People can only oppose the fairtax if they do not accept the Fairtax propaganda hook, line and sinker. No substance, just a backhanded insult.
pigdog post 319: Then he's as misinformed as you. Help educate him.
pigdog being a bit more straightforward with his insult from the previous post.
pigdog post 322: No, I believe you're misunderstanding what he said. Perhaps you should read the bill and draw your own conslusions: http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:
The poster made perfect sense, and all pigdog does is imply they are ignorant of the facts. Posts nothing of substance, just shameless promoting.
I could go on and on and on, but the picture is clear. Pigdog spams post after post to ignorantly bump the thread to shill for the fairtax. Zero substance, spinkled with insults and false accusation and outright lies.
"In case you don't understand it, it's your 30% (not 23%) fairtax imposed ON wages, salaries and benefits of "any government employee"....And it's HUGE!OH and you also omitted the tax on financial intermediation services which includes some interest, both earned and paid. And withholding of tax from non-resident aliens and foreign corporations (which begs the question, why would a foreign corporation want to do business here after the Fairtax?)
You are sooo easy. Read my tag line. It is spot on target?...Read it yourself. Your ommissions and deceptions of what the Fairtax does tax is bastardizing your own tag line.
Read my tag line, it fits you to a "TEE".
Note that the exceptions don't include governments! Governments would be paying the FairTax on the wages of their employees (which is the point lewislynn was trying to make).
Having read and reread it appears that government employer will pay the sales tax on employees. I wonder if that is akin to the sales tax applied to a domestic servant that provides a service.
Thank you.
Shalom's personal attacks were over the top, but those were several days old.
But... But they were several days old is irrational excuse. Your "but" negates nothing. They were personal attacks.
Most of his [Shalom Israel] recent posts were just off-topic posts
That's the point. Shalom Israel's posts were off topic. pigdog's posts were on topic.
You don't like the Admin Moderator's decision to ban Shalom Israel then take it up with the AM. It's your problem -- not mine. Deal with it, or don't. I couldn't care less about your problems with the AM.
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