[If a government employee makes $50K today, it will cost the government $50K plus $15K under the fairtax.]
This would still not add 30% to the current cost of government employees, however, as LL implies.
Currently, a $50K salary costs $50K * 1.0765 to include the SS/M on the employer side. So $53,825 is the current cost of the $50K employee.
So $65,000 minus $53,825 = $11,175 which is 21% increase in cost to government.
So if government salaries now total $150 billion, then they would jump up a whopping $30 billion ? Or if they were currenly $300 billion, it would add $60 billion ?
How much exactly are we talking about in additional spending ? Anybody have a figure handy for the total current Federal spending on salaries ?
This would still not add 30% to the current cost of government employees, however, as LL implies.`(17) WAGES AND SALARY-Currently, a $50K salary costs $50K * 1.0765 to include the SS/M on the employer side. So $53,825 is the current cost of the $50K employee
The terms `wage' and `salary' mean all compensation paid for employment service including cash compensation, employee benefits, disability insurance, or wage replacement insurance payments, unemployment compensation insurance, workers' compensation insurance, and the fair market value of any other consideration paid by an employer to an employee in consideration for employment services rendered.You want to include the employer half into the wage? Then the tax is $53,825 plus 30% or $69,954 not 65,000. Thanks for the clarification.
Employee benefits, disability insurance, or wage replacement insurance payments, unemployment compensation insurance, workers' compensation insurance, and the fair market value of any other consideration paid...Once again, thanks for pointing that HUGE extra cost out.
With few exceptions, all government purchases are taxed. So it is just not government salaries that get tax added on to them. There could be as much as $300 billion added to federal government spending alone because of the fair tax. Of course it is all just an silly trick to try to keep the fair tax rate artificially low. It is only a fool who thinks government paying itself actually raises money. Its like me paying myself $1 million dollars and then claiming I am $1 million richer. Totally fraudulant.
How much exactly are we talking about in additional spending ? Anybody have a figure handy for the total current Federal spending on salaries ?What makes you think the words "any government" refers to only federal spending on salaries? And what makes you think it's only salaries? The way I read the definition from the bill the tax also taxes retirement pay/benefits for "any (all) government" employees.
You claim it's 21% increase and then poo poo that as if it's miniscule because it's not 30%...guess what, a 21% increase in ALL, as in local, state and federal (that's what "any government" means) government payroll alone, not counting the tax on all of the other benefits and employer costs, would be devastating.
My opinion is the phoney (gag!) "prebate", the Taxable Employer, the Trust Fund Revenue and the Sales Tax Inclusive SS Indexation clauses (clauses that you all purposely overlook) negate by 10 everything else that could be good .