[The FairTax bill requires Social Security payments to be increased by the amount of the FairTax.]
Wrong. "This section makes sure that the cost of living adjustment for Social Security benefits includes
price increases, if any, caused by the FairTax." You see the "if any" part ? No increase in SS benefits if there is no increase in prices.
[Pensions would be an "employee benefit" and would be taxable.]
Wrong again. Contributions INTO a government pension are taxable. Payments FROM a pension are not.
[I'm assuming the state and local governments are actually going to spend the money. If the amount doesn't increase, ...]
The FairTax has no provision for increasing block grants to State and local government. Let's stick to the actual provisions of HR25, shall we ?
[Again, the money spent for research grants (research is not "tuition for primary, secondary, or postsecondary level education; or job-related training") would be taxable.]
Wrong again. If the grant for research is to a not-for-profit organization, then there is no FairTax. There is no FairTax on contributions to not-for-profit organizations in general. A for-profit company like Genral Dynamics would charge the FairTax on a research CONTRTACT but a University would not charge FairTax on a research GRANT. Is that clear ?
[Like what?]
How about foreign aid ? Or Katrina relief ? Or anytime the government is just handing out money rather than purchasing stuff ? Sure, the recipient may not be able to buy as much stuff with the government check, but that doesn't automatically mean the government check must be larger.
Wrong. "This section makes sure that the cost of living adjustment for Social Security benefits includes price increases, if any, caused by the FairTax." You see the "if any" part ? No increase in SS benefits if there is no increase in prices.You're wrong. I don't see the language you quoted anywhere in the bill. Read Title III, Sec. 303 (the one entitled "Sales Tax Inclusive Social Security Benefits Indexation"). It states:
if the Consumer Price Index (as so prepared) does not include the national sales tax paid, then the term `CPI increase percentage', with respect to a base quarter or cost-of-living quarter in any calendar year, means the percentage (rounded to the nearest one-tenth of 1 percent) by which the product of--Basically, either the CPI includes the FairTax or the bill adds it on. Either way "the FairTax bill requires Social Security payments to be increased by the amount of the FairTax."
`(I) the Consumer Price Index for that quarter (as so prepared), and
`(II) the national sales tax factor [the exclusive FairTax rate],
exceeds such index for the most recent prior calendar quarter which was a base quarter under subparagraph (A)(ii)
Wrong again. Contributions INTO a government pension are taxable. Payments FROM a pension are not.Really? Where do you read that? The bill states that the "terms 'wage' and 'salary' mean all compensation paid." That sounds like when it's distributed. A hint is that the bill specifically requires pension payouts to be reported as wages to the SSA.
The FairTax has no provision for increasing block grants to State and local government. Let's stick to the actual provisions of HR25, shall we ?The bill requires state and local governments to pay the FairTax so it is a provision of HR25.
Wrong again. If the grant for research is to a not-for-profit organization, then there is no FairTax.Again, you are wrong. Not-for-profits pay the FairTax on their purchases unless they are for resale. (Are you sure you are up on the specifics of the FairTax?)
How about foreign aid ? Or Katrina relief ? Or anytime the government is just handing out money rather than purchasing stuff ? Sure, the recipient may not be able to buy as much stuff with the government check, but that doesn't automatically mean the government check must be larger.Not automatically, no.
Nor does it have a provision for increasing federal spending that gets subject to the tax, but does anyone seriously doubt that this would happen?
It's naughty of you to disabuse Nightie of his favorite Chicken Little pontifications. He thinks people are stupid enough for his "stuff" to scare their socks off.
If you keep that up, he may bust a blood vessel - or say something bad at you.