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.

[xcamel]

in case you missed in amidst all of the "din"

http://www.taxreformpanel.gov/final-report/
(see section 9)

[RobFromGa]

Another way the FairTax is different than the Florida plan:

Who Is Exempt from paying Florida Sales Tax?

Federal, state, county, and city governments; and qualified nonprofit organizations, such as religious, charitable, scientific, educational, or veteran organizations (as defined in section 212.08, Florida Statutes) do not have to pay sales tax on certain purchases.

[Man50D]

It doesn't matter how much more people take home, or how big the prebate check is. People see the prebate check once a month, and their paycheck once a week. They'll see the increased prices they pay each and every day of the week.

People have 7.65% payroll taxes and 7.65% employer matching deducted from their paychecks each week currently with the income tax. They also pay the cost of embedded value added taxes on each product or service. People will receive 100% of their paycheck because The Fair Tax will eliminate both of the above taxes. Your pricing examples fail to consider three points:

1. People will no longer pay the the embedded value added taxes(VATS) because business to business taxes will be abolished. Due to competition companies will be forced to pass on the savings to the consumer.
2. The prebate will cover taxes on necessities, such as milk, up to the poverty level.
3. People will not be taxed for used items.

[balrog666]

[Principled]

Sorry Kingu. It is not my intent to convince anyone. I'm here to gather and share information. You're not helping.

Your own anti-nrst crowd stipulates to the 9% drop in prices. That's not me who says it, it's your camp. I think it will be more, but I'm willing to use 9% for discussion.

So here we are back to you not knowing what you're talking about. Fat free or something?

If you choose to lump yourself in with a large group who you say "can't get it", fine. That's your decision. I simply observed it, but chose not to say it.

You can take up the 9% drop in prices with the other anti-nrst posters. LOL!

[Principled]

So scamel, about the information on your mythical flat tax. You said it was 19.5% or something? You never answered...

Does that include employee fica? employer fica? What about business taxes? Does your flat tax have them? Is it border adjusted? Does it retain withholding?

You never answered any of those questions, nor did you provide a link to it. You've already said there is no bill... so where's the information on it?

Surely you don't want us to accept and embrace it when you can't tell us anything about it!

I do want to hear about alternatives, but you won't share any information on it. Why's that?

The best alternative IMO is the nrst. But I'd like to hear about the flat tax you're imagining....

[Principled]

The guy is a 10th grader. He is clueless. Have fun with him.

[Principled]

Do a google on "competition". It may help... ('course, it may not LOL!)

[xcamel]

Sorry, P, I'm not playing down your list of "stupid liberal debate tricks"

[kingu]

1. People will no longer pay the the embedded value added taxes(VATS) because business to business taxes will be abolished. Due to competition companies will be forced to pass on the savings to the consumer.

Embedded taxes - the NRST folks love to fling that around. I already explained how embedded taxes increase, but let me spell it out once again. Yes, the employer will not have to kick in the 7.65% in for social security. Lovely. So let's take a pure service industry, say, tax preparation. Labor costs are still only 30% of the final price to the consumer. So you've got a final price reduction of 2.295 percent. (30% * 7.65%)

Any imaginary tax compliance costs savings you can throw out the window - companies still have to generate the same sales data for other taxes and normal business practices. Filling out the actual IRS forms is a negligible portion of the costs of doing business.

Meanwhile, the cost for all the various forms of insurance (liability, fire, theft, flood, worker's comp, health, dental), utilities, leases, rents, etc just got hit with a 23% inclusive increase in cost. Benefits typically are half the salary of an employee, so if you take that 30% labor cost, cut it in half to get the benefits rate, 15%, and then multiply it by .29, you get a labor cost increase of 4.35%. Subtract your 2.295 percent and you have an end increase, not counting increases in utilities and rents, of just over 2%. No reduction.

2. The prebate will cover taxes on necessities, such as milk, up to the poverty level.

Prebates are great for the week when people get the check, but short term memory is the hallmark of the American public - they won't remember that when they're paying for stuff with the NRST added in.

3. People will not be taxed for used items.

Used milk? Used rent? Used what - eBay folks will be pleased as punch, but honestly, not many people buy used things. If this does pass though, I'm starting a repair business - fixing that fridge will be a heck of a lot better deal (especially if they trade it in for a 'refurbished one' so I don't have to charge them tax on the repair labor.)

[Your Nightmare]

A poverty level person making 26,400 would spend all his earnings and would then have a $6072 tax bill. That $6072 is what he gets in rebates. Hence, he pays no tax. UNLESS he chooses to absorb the tax and buy with it.

But he hasn't bought $26,400 worth of goods. He's bought $20,328 worth of goods and paid $6,072 in FairTax. Show me how he can buy $26,400 worth of goods.

[Principled]

I am genuinely interested in a flat tax without the problems I've mentioned. Either there is one or there isn't. I've asked for information on it and you have called it a "stupid liberal debate trick".

That's odd. Isn't it a liberal trick to make a claim in hopes of deflecting the main issue only to ignore the claim when asked about it?

So, what's the skinny on the flat tax you're talking about? Did you make it all up?

[Principled]

Does someone who pays 26400 for something today get 26400 worth of goods?

This is back to ignoring the effect of income and payroll taxes on purchasing power. Cute.

[xcamel]

Nobody, but nobody, who has been on these forums for more than about 2 seconds believes a single word of what you just posted.

[navyguy]

Straw man argument. Fees on telephone service, utilities, gasoline, franchise taxes, etc have absolutely nothing whatsoever to do with the Fair Tax. EVERY state has those.

The Fair Tax isn't intended to eradicate, change or address ANY of those taxes. The ONLY the FT does is change the way the federal gov't collects revenue. Some states have already successfully adopted this same approach.

It's obvious to me that you haven't read the Fair Tax book and that you actually know very little about it.

If you do not support the Fair Tax then what sort of tax reform do you support?

[navyguy]

You refuse to answer my very simple questions. I'm all done with you.

[Zon]

Principled: These guys don't care about truth.83

Mojave/Roscoe: What an amazing thing for you to write.

HA!! You're the one that has multiple screen names. What other screen names have you used besides Mojave and Roscoe?

[xcamel]

I bet he has multiple fingers on his hands and multiple keys on his keyboard too...

What's your point?

[Zon]

You know. Thick as thieves you two?

[xcamel]

Well... if you can't just answer a simple question...

/snicker