Posted on 09/03/2006 5:18:40 AM PDT by 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.
(Excerpt) Read more at bayshorenews.com ...
If he was trying to sell the Brooklyn Bridge there'd actually be a bridge. More like he's trying to sell the Golden Hudson bridge, or is it the Hudson Gate Bridge?
Why do you keep saying this? The FairTax certainly does add 30% Tax to everything, including all government purchases, salaries and benefits. This means state and local governments will pay the 30% tax as well.
If an item in the FairTax world has a $100.00 shelf price, the price that you pay will be $129.87, which is a 30% tax.
And this Fair Tax rate is way too low and would need to be substantially higher.
That much I can agree with. The prebate is an ugly idea, ripe for corruption. That said, not every american will get it... only those at or below the poverty line (depending on family size, etc...) But I still don't like it.
As for the 16th Amendment... if we put enough pressure on our reps it can be done (we did it with prohibition).
"Why do you keep saying this? The FairTax certainly does add 30% Tax to everything, including all government purchases, salaries and benefits. This means state and local governments will pay the 30% tax as well.
If an item in the FairTax world has a $100.00 shelf price, the price that you pay will be $129.87, which is a 30% tax."
You are TOTALLY WRONG. You CLEARLY do not understand the FT or the difference between inclusive and exclusive taxation. If you buy a widget today, under current tax law, for 100 bucks, then under the Fair Tax that same widget will cost you 100 bucks. Your statement assumes the FT is an exclusive tax. YOU ARE WRONG. The FT is purely inclusive.
You need to do some research and educate yourself.
This is not true. It puts every single one of us on the dole. For now, that would be one of the first things to go though when the revenue failed to materialize-- prebates for anyone above the poverty line.
When was the last time you used algebra to fill out your 1040, if indeed you ever have?
I can't put any pressure on the Reps from California, New England, or the Upper Midwest where it will be very tough to come up with the level of support needed to amend the Constitution. If this was accomplished before the FairTax were enacted, that would remove that one issue. But I still don't believe the FairTax can work.
Your falsehood about Florida's sales tax crumbled.
Instead of a monthly entitlement check? Well, heck!
I would suggest that you read the FairTax website a little more. You are an example of what I have said over and over-- the rank and file FairTax person is woefully uniformed about the misrepresentations made by the FairTax people in the past, and the backpedaling they have done in the past year. The prices will stay the same MYTH has been abandoned.
If you buy a widget today, under current tax law, for 100 bucks, then under the Fair Tax that same widget will cost you 100 bucks.
How in the world do you think that the widget is going to drop in shelf price from $100 to $77, so that when the 30% FairTax is added it will still be $100?
He punked out.
"Everything will be different yesterday, and free beer tomorrow."
Did you know that Texas has a state cement tax? A bingo tax? An inheritance tax? Texas taxes mixed drinks at 14% of gross receipts.
" would suggest that you read the FairTax website a little more."
Show me where I'm wrong. Lets hear it.
"How in the world do you think that the widget is going to drop in shelf price from $100 to $77, so that when the 30% FairTax is added it will still be $100?"
You've made the exact same mistake again. You either don't understand the difference between inclusive and exclusive taxes or you do and you're just playing a game. My bet is that you don't understand the difference. You also don't seem to understand the idea behind the elimination of embedded taxes. Until you understand the difference there is little point in arguing with you. You are making the most common mistake I hear from anti-FT supporters. Educate yourself.
This is the simple truth you can not get your head around my friend.
This applies to most government purchases too, so all the employee salaries (except teachers), their benefits, and everything purchased by the government- state, local AND FEDERAL will cost about 20% more than now. This will cause the size of government to grow about 20% in real dollars, not counting the additional costs added by the prebate. So, the 23% FairTax rate will not be sufficient to fund the new larger government.
And state and local tax revenues will have to be increased about 20% too, to pay the Federal Fair Tax on all salaries (except teachers), their benefits, and all purchases including road repairs, parks, and community services.
Sales taxes are exclusive. Except for the one proposed to fund the NRST entitlement scheme.
I understand both fully and I am not playing any games. You also don't seem to understand the idea behind the elimination of embedded taxes. Until you understand the difference there is little point in arguing with you. You are making the most common mistake I hear from anti-FT supporters.
I suggest you take a look at the other threads I directed you too, and then you can decide whether I don't understand the "idea behind elimination of embedded taxes". You are actually making a common mistake we used to hear from ALL Fair-Tax supporters but they have been forced to stop making the claims you are still making.
Educate yourself.
As a FairTax sales professional, you owe it to yourself to stay current on what they are claiming for the plan, it is a moving target as people dig deeper into the misrepresentations that have been made. I have educated myself, you should do the same and understand that the claims have changed.
"You can not simply snap your fingers and "eliminate" something that has already been applied (in some cases, many times)."
Wrong. This is exactly how the federal income tax we have now was applied... literally overnight on a specified date.
Here is what Boortz and Linder said on the subject last summer:
THE FAIRTAX --- STRAIGHTENING OUT SOME CONFUSION
When Congressman Linder and I were busy researching and writing The FairTax Book we knew full well that it would one day become the focal point for those opposed to this tax reform idea. We tried, therefore, to make sure that our numbers and claims were correct and consistent with the research that went into the drafting of HR 25.
On review, and after reading the critiques of opponents to the FairTax plan, we have concluded that there is one element of the FairTax that could have been present with more clarity in the book; the concept of embedded taxes and keeping 100% of your paycheck. Those who have much to lose if the FairTax were to become law will focus on these areas in an attempt to undermine support, so let's put their objections and distortions to rest by addressing those matters here and now.
We explained in the book that the FairTax plan was revenue neutral. By this we meant revenue neutral for everyone ... the government, businesses and individuals. You can't put more money in the pockets of one without taking money out of the pockets of another. The harsh reality is that politicians would not support the FairTax if it meant less revenue for the federal government; business leaders would not support the FairTax if it meant a decrease in corporate earnings and profits, and the people would most certainly not support the FairTax if it meant a decrease in their income. Taking an snapshot view of our economy, an increase in income in one of these sectors would necessarily mean a decrease in another. This is why the FairTax was designed to be absolutely revenue neutral – leaving everyone pretty much where they are in terms of income or revenue. To put it more bluntly, there is no free lunch in the FairTax plan. There is no "something-for-nothing."
This brings us to the question of embedded taxes in the cost of consumer goods and services, and your paychecks.
As explained in The FairTax Book, there are taxes embedded in everything we buy. Every entity which provides a product or service in the design, production, marketing, distribution and sale of every consumer good or service will incur some tax liability as they perform their particular function. This tax liability will be incorporated into whatever these individuals or business entitles charge for their services, and will all passed through to become a part of the final cost of the product or service.
Now here's what we didn't explain well in the book.
Every employee of any company involved in American commerce is also a provider of a service, and, as such, the employee incurs a tax liability as a result of his or her work. This tax liability is incorporated into what the employee charges the employer for their services, and is eventually incorporated into the final retail cost of the employer's product or service. Each employee is essentially a separate business entity providing a product, be it physical or mental labor, to the employer.
The extensive research behind HR 25, The FairTax Bill, shows that the average embedded taxes in every consumer product or service is about 22%. In some industries, such as leather goods, the embedded tax is smaller. In other industries, such as homebuilding and construction, the embedded tax is higher, but it averages out to somewhere between 22 and 23%. With the passage of The FairTax Bill, those embedded taxes disappear. These embedded taxes include the combined tax burdens of all entities involved in bringing those goods or services to market, and that includes you, the employee, and the taxes you incur as a result of your employment.
We write in The FairTax Book that the competitive pressures of the marketplace will force prices down when embedded taxes disappear from the cost of retail goods and services, and we cite 22% as the average amount of those embedded taxes. Does this 22% include the income and payroll taxes that are paid by employees? Yes, it does. So ... what does this mean to your paycheck after the FairTax becomes law?
When the FairTax is implemented, and when business and personal income and payroll taxes disappear, your employer is going to have to make a decision. He will either take some or the entire amount he had been withholding for federal income and payroll taxes and add it to your weekly check, or he will readjust your pay figures so that your entire paycheck will be equal to what you used to call "take home pay" before the FairTax. The employer may also decide to do a little of both. Either way, you can see that the amount of money you actually receive as pay – the amount you can put into your bank account – will not decrease, and may actually increase.
On a larger scale real wages will rise to the extent to which the nation's employers decide to return the embedded costs of their employee's income and payroll taxes to the employee. Likewise, the cost of the products or services produced by the employer will be reduced to the extent to which that employer retains all or a portion of those income and payroll taxes together with the other taxes on capital and labor eliminated by the FairTax. Once again, a zero-sum, revenue neutral game.
Now, let's elaborate on the "keep 100% of your paycheck" line that appears in The FairTax Book. It is certainly true that after the FairTax becomes law there will be no more withholding from your paycheck for any federal taxes. What you earn is what you get. This is not to say that your gross pay will equal what it was before the FairTax. This will depend on what your employer does when the embedded costs represented by the tax burden you have passed on to your employer disappear. One thing is certain: You will suffer no decrease in real or net earnings --- the amount of each paycheck you deposit into your bank account every other week. The "keep 100% of your paycheck" concept can more easily be applied to those who either change jobs or come into the labor force after the implementation of the FairTax. A new worker will negotiate a wage with an employer knowing that the amount negotiated will be the amount that worker receives every two weeks ... no deductions. Likewise, when you change employers you, too, will negotiate a wage that will not be subject to withholding, and you will get 100% of your wages in each paycheck.
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