You think my numbers are at the extreme margin ? I had no idea I was so well-off -- considering I still can't afford better than a townhouse in SoCal.The median income for nonelderly childless households (that seems closest to your situation) was ~$44,000 in 2002. $125,000 may not be much in SoCal, but you'd be a real playa here in Houston (a really nice 3,500 sq. ft starter castle in the suburbs would cost you about $300k).
[Your analysis is still lacking. You still have to PIT example paying too much in IT. (And why, exactly did you add pension and SS to the scenario?)]
$18,000 is too much income tax for $80K taxable income ? Or the $80K is too much taxable income for a single-filer starting with $132K ? I completely excluded the A-T account's withdrawals of principal, as well as half the SS income, then also deducted the mortgage and property tax. $80K seems about right.
I added the pension and SS to show that the ordinary income tax owed on the 401k withdrawals would be at a relatively high marginal rate. It isn't like it is going to be anybody's sole income. It would be misleading to pretend there was no SS or pension -- that would be a rude shock to find out I had applied too low a tax bracket to my 401k withdrawals.
[$125,000 may not be much in SoCal, but you'd be a real playa here in Houston (a really nice 3,500 sq. ft starter castle in the suburbs would cost you about $300k).]
Yep, that might be a plan after I retire. In the meantime, my 1300sf 2bd townhouse is worth $450K and a 2000sf house with a yard starts about $750K.
And why, exactly did you add pension and SS to the scenarioThat's what Kellis does. skew the numbers to make it appear favorable to the fairtax.
Haven't you noticed? If this, then that...If that, then this. Like when he throws in the 3/4 of states payroll is educator's and the educator's wages salaries and benefits aren't subject to the new excise tax...Well, yes they are, only tuiton isn't subject to the Fairtax, there's nothing about "educator's" wages, salaries and benefits being exempt.
But what does that matter when your only argument is - if this, then that, if that, then this and neither this or that is factual but by doing this, then that he keeps moving the goal posts?