Save America with the ‘Fair Tax Act’

The Courier ^ | August 31,2006 | Gordon Bishop

[Man50D]

Abolish the federal income tax!

No more taxes on savings and investments!

A "Fair Tax" can completely fund the federal government, Social Security and Medicare!

You control how much you spend!

So what are we waiting for?

You, the taxpayers of America burdened with an income tax that is costly, wasteful and sinking America into inevitable bankruptcy. All current forms of federal taxation would end! You would keep 100 percent of your paycheck. You control how you spend your paycheck. It's your money. You make the decisions as to how you want to spend your money.

The Fair Tax would create more jobs and give the USA a level playing field when selling overseas. United States Senator John Linder (R-Georgia) is sponsoring the "Fair Tax Act of 2005." If enacted by Congress, it would accomplish all of the above. Simple. Easy. And affordable.

It's the best way to downsize government without disrupting the economy.

To join the "Fair Tax" movement in America, just sign the "Economic Freedom & Fairness" Petition supporting forward-thinking solutions. Go to www.grassfire.net and liberate the working class of taxpayers. Grassfire is trying to give the working class the same kind of freedom America's founders gave to those who joined the American Revolution in 1776 with the "Declaration of Independence." We won the Revolutionary War, but have lost our country since the 16th Amendment (income tax) became "Law" in 1913.

[kingu]

You have apparently fallen into the trap provided - you are not considering that your buying power is reduced before you buy today via income/payroll taxes. The nrst reduces your buying power at purchase.

Ever wonder why folks price things at $2.99 or $2.95? You and I both know that it translates to $3 a pop, but sure as rain comes from above, there's those folks who squeal out to another how this is only 'two bucks.'

Your lovely and thoughtful response happens to ignore the majority of people out there who see things as they see 'em. That $4 a gallon gas is $4 a gallon. But I guarantee you that the press will make sure they absolutely know the names of everyone who voted to increase their 'costs.'

[Principled]

offset

An agent, element, or thing that balances, counteracts, or compensates for something else.

I buy stuff and use the prebate to pay the tax. Hence the tax paid did not come from earnings. The rebate counteracts or compensates for the tax paid.

[Principled]

You didn't read my post, did you?

[Mojave]

I buy stuff and use the prebate to pay the tax.

The "prebate" doesn't equal the tax paid.

[navyguy]

Actually, there are 7 states with no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

The collection of state revenue through sales tax rather than income tax is exactly the same model as the Fair Tax model for the federal government to collect revenue through sales tax rather than income tax.

"Could you point me to the part of the Texas Tax Code where the Fair Tax model is being used? I can't find it in the nearly 300 pages that I've checked so far."

You're wasting your time if you expect the Texas tax code (here... http://www.capitol.state.tx.us/statutes/tx.toc.htm) to explicitly mention the FT. No state tax code explicitly mentions it as far as I know. But that doesn't mean it isn't using the same model, as I explained above.

Here is a list of the state income tax rates for all states...

http://www.taxadmin.org/FTA/rate/ind_inc.html

You'll see Texas has no state income tax. By definition this is the same model used in the Fair Tax.

If you do not support the FT, what tax reform do you support?

[Mojave]

The collection of state revenue through sales tax rather than income tax is exactly the same model as the Fair Tax model for the federal government to collect revenue through sales tax rather than income tax.

Bull.

The state sales taxes are not based on dishonest "inclusive" statements of rates and don't involve monthly entitlement checks from the government.

[kingu]

You didn't read my post, did you?

Indeed, I did read your post, and you must have missed my response which can be boiled down to: so what? People are stupid. They look at what's in front of them, not what's beyond, or behind them. That's why they're 'shocked' when their credit cards exceed their income. What you want them to think, and what they will think, when faced with increased prices are two completely separate things.

And you can bet the drive by media will be reinforcing it at every turn. 'Look at how much more expensive it is to buy groceries!' Not, 'look at how much more is in your paycheck.' We'll hear stories about how folks spent their 'prebate check' in less than a week!

[Principled]

But I guarantee you that the press will make sure they absolutely know the names of everyone who voted to increase their 'costs.'

But kingu, costs don't increase. They decrease.

I gallon of premium has a price tag of $3. But I have to earn $4 to buy it. That's because my buying power is reduced by the taxes I pay. The taxes I pay make it so I can't buy as much with my earnings. Precisely, I have to earn 33% more than what I want to spend because I pay 25% of everything I earn in federal income and payroll taxes.

Under the nrst, taxes reduce my buying power too. But the costs of the income tax are heavy, and when removed will allow for a 9% drop in retail prices. That $3 price tag will go to 2.75. Then include my nrst effective rate of 17%. So I'd need to earn $3.31.

Under the income tax, my buying power is reduced so that I need to earn $4 to buy a $3 gallone of gas.

Under the nrst, my buying power is reduced so that I need to earn $3.31 to buy a $3 gallon of gas.

Costs don't increase, they decrease due to elimination of income tax costs and a lower rate resulting from a larger base.

[navyguy]

Despite having asked you twice now if you have read the Fair Tax book and what alternative tax plan you support you have failed to answer either question. I can conclude 2 things from this:

First, you haven't read the Fair Tax book.

Second, you must support the current tax code because you haven't offered an alternative.

[navyguy]

Its pretty clear that you don't understand the Fair Tax.

For the third time: Have you read the Fair Tax book???

[Mojave]

You keep repeating absurd and refuted falsehoods. You're a Fair Taxer.

[kingu]

Gosh, you're right! They don't charge income tax! They charge fees on telephone service, utilities, gasoline, franchise taxes (but only for corporations and the like), sales tax, property tax, use fees...

Actually, it looks like most of the states you list do exactly the same thing. A retail tax supplemented by taxes on just about everything. Is this the model you're talking about? We'll have this huge retail sales tax, plus all the fees, taxes, etc on the side?

[xcamel]

The myth that somehow "everything is different yesterday" grates on people like nails on a chalkboard.

[RobFromGa]

Welcome to Florida!

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Do You Own Stocks, Bonds, Money Market or Mutual Funds?
Will You Buy Merchandise?
Do You Own Real Property?

Do You Own Stocks, Bonds, Money Market or Mutual Funds?

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Intangible Personal Property Tax
Every Florida resident who (on January 1) owns, manages, or controls intangible personal property must file a Florida Intangible Personal Property Tax Return for Individual and Joint Filers (Form DR-601I), unless the tax due, before discount, is less than $60.

"Intangible personal property" is defined as all personal property which is not in itself valuable, but derives its chief value from that which it represents, including but not limited to: stocks, bonds, mutual funds, money market funds, loans, notes, and certain accounts receivable.

It is an annual tax based on the market value as of January 1. The return can be filed as early as January and is late if postmarked after June 30. Discounts apply for early payment; penalties and interest apply for late payments.

Will You Purchase a Home or Business Property, Apply for a Mortgage or Loan, or Purchase Bonds?

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Documentary stamp tax is levied on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. This tax is typically paid to the Clerk of Court at the time the document is recorded.

Documentary stamp tax is also levied on notes, certain renewal notes, bonds, and other written obligations to pay money executed, signed or delivered in Florida and mortgages and other liens filed or recorded in Florida. The tax is paid to the Clerk of Court if the document is recorded, or sent directly to the Department of Revenue, if not recorded.

Will You Buy Merchandise?

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Sales Tax
Florida's general sales tax rate is 6 percent. Each retail sale, admission charge, storage, use, or rental is taxable, along with some services. Some items are specifically exempt. Some counties impose a discretionary sales surtax in addition to the 6 percent state tax. The county tax rates can range from .25 to 2.5 percent, and are levied on the first $5,000 of the purchase price. The $5,000 limit does not apply to commercial rentals, transient rentals, or services. Consumers pay sales tax and any county-imposed taxes to the seller at the time of purchase.

Use Tax
Unless specifically exempt, merchandise purchased out of state is subject to tax when brought into Florida within 6 months of the purchase date. This "use tax," as it is commonly called, is also assessed at the rate of 6 percent. Examples of such taxable purchases include purchases made by mail order or the Internet, furniture delivered from dealers located in another state, and computer equipment delivered by common carrier. Items purchased and used in another state for 6 months or longer are not subject to use tax when the items are later brought into Florida.

No use tax is due if the out-of-state dealer charged sales tax of 6 percent or more. If the dealer charged less than 6 percent, you must pay the difference to equal 6 percent. For example, if the dealer charged 4 percent, you must pay the additional 2 percent to Florida. Complete an Out-of-State Purchase Return (Form DR-15MO) to file and pay use tax. To obtain this form, see "For Information and Forms" on the back panel. If the tax owed is less than $1.00, you do not have to file.

Do You Own Real Property?

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Ad Valorem (Property) Tax
If you purchase a home in Florida, you will pay ad valorem or "property" tax based on the taxable value of the property. Ad valorem taxes are assessed by the county property appraiser and collected annually by the county tax collector's office.

A $25,000 homestead exemption and cap on assessed value is available to homeowners who meet certain requirements. Certain exemptions are also available to blind persons and other physically challenged residents. Call your county property appraiser for details.

Motor Vehicle Registration and Taxes

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Florida's 6 percent use tax applies to and is due on motor vehicles brought into this state within 6 months from the date of purchase. If the purchaser resides in a county that imposes a discretionary sales surtax, that tax also will apply. Use tax and discretionary sales surtax do not apply if a like tax equal to or greater than 6 percent has been lawfully imposed and paid to another state or District of Columbia.

It is presumed that a motor vehicle used in another state, territory of the United States, or District of Columbia for 6 months or longer before being brought into Florida was not purchased for use in Florida. To qualify for exemption from use tax, you must provide documents to prove that the vehicle was used outside Florida for 6 months or longer.

The full amount of use tax (6 percent) applies and is due on any motor vehicle imported from a foreign country into Florida. It does not matter if the motor vehicle was used in another country for a period of 6 months or more prior to the time it is brought into Florida. Furthermore, Florida does not recognize tax paid to another country when calculating the tax due. The tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price.

For information on registration costs, regulations, driver licenses and minimum liability insurance coverage requirements, contact the Department of Highway Safety and Motor Vehicles. Visit their Internet site at www.hsmv.state.fl.us/dhsmv/newflres.html or call 850-922-9000.

Payment of tax due on motor vehicle registrations and the purchase of Florida license tags may be handled at the local county tax collector's office.

Other Taxes and Fees

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Florida does not impose personal income, inheritance, or gift taxes. However, there are other taxes and fees that, in certain counties or circumstances, Florida residents may be required to pay, such as: convention development tax, local option tourist tax, fuel, communications services tax, gross receipts tax, lead-acid battery fee, new tire fee, motor vehicle fee (Lemon Law), or rental car surcharge.

[Mojave]

Caught their new myth? It seems that Florida and Texas are now using the Fair Tax model, according to the cult.

[xcamel]

Sorry, IRS rate tables are not inclusive. Never will be. If they were, they would be impossible to calculate.

Gross income - deductions = AGI
AGI * tax rate = amount due.

that's about as simple as it gets.

Items consumed are priced as "corporate tax/fee burden included", but that is in effect a flat tax, as it is the same for anyone would potentially consume that product.

You have an "apples and oranges" argument going.

[xcamel]

Noted.

"Believing in the Far Tax Book is as intelligent as believing in Farenheit 9/11"

[kingu]

But kingu, costs don't increase. They decrease.

I gallon of premium has a price tag of $3. But I have to earn $4 to buy it. That's because my buying power is reduced by the taxes I pay. The taxes I pay make it so I can't buy as much with my earnings. Precisely, I have to earn 33% more than what I want to spend because I pay 25% of everything I earn in federal income and payroll taxes.

This is kinda like trying to explain nutrition to someone who's really excited about the 'fat free' designation on the bag of candy. Some people focus on things SO well that they neglect to actually pay attention to what they're saying. Your explanation is wonderful, and it'll gaze over the eyes of 70% of the population of the United States.

As to the drop in retail prices: Yeah. Right. I have as much confidence in that occurring as I do in people somehow becoming brighter than a dim bulb.

Let's take apart the concepts: Less paperwork means less costs! Not for a business it doesn't. You still have to do the paperwork - we've got state taxes in all but seven states (and most tax anything other than a single owner.) Retail 'tax collectors' will get nabbed from credit card transactions - the quarter (or half, I can't remember all of a sudden) of the NRST doesn't cover the 2.5% that credit card companies charge.

Businesses will lower costs because they won't be paying social security taxes! Granted, but they've also just developed NRST on all their leases and rents and utilities - their cost of business just went up. NRST applies to insurance, health coverage, dental coverage, workman's comp insurance - actually, pretty much everything except what is involved in actually producing products or services. So please, tuck away this stupid notion that the price of goods goes down; economists, even good ones, never actually ask business owners to spell out costs of doing business. They like little tables instead.

[RobFromGa]

And most services are NOT taxable in Florida I believe. The last time they tried to change this, and tax services, the voters almost lynched the whole mob of them.

[RobFromGa]

In Florida, a tax is imposed on:

• retail sales, rentals, use, consumption, distribution or storage for use or consumption in Florida of tangible personal property and the rental or furnishing of taxable things or services
• renting or granting of a license to use living quarters, sleeping or housekeeping accommodations for six months or less
• leasing or renting motor vehicle parking, boat docking, or storage spaces for either
• renting or leasing real property unless the property is used for agricultural purposes or used exclusively as dwelling units
• admissions, including membership fees and dues
• any facility or device used primarily for the control of pollution or contaminants from manufacturing or industrial plants
• charges for telegraph, long distance telephone calls, telecommunications service, television system program service, installation of telecommunication and telegraphic equipment, and charges for electrical power or energy
• detective, burglar protection and other protection services
• nonresidential cleaning and pest control services

Sales and use tax rate. The Florida sales and use tax rate is generally 6 percent. (In addition, make sure you contact your local governments in Florida because they are allowed to assess a local sales and use tax.) Some of the other various tax rates are as follows:

• 2.5 percent tax. Self-propelled or power-drawn farm equipment is taxed at 2.5 percent.
• 4 percent tax. The use of coin-operated amusement machines is taxed at 4 percent.
• 7 percent tax. Charges for telecommunication service and electrical power or energy are taxed at 7 percent.

Tax-exempt items. Florida has many specific items that are exempt from sales tax — for example, food and drink for human consumption and certain prescription medications are exempt from Florida sales tax. You'll want to check and see if you are exempt from the sales tax.