Posted on 10/19/2006 5:11:50 PM PDT by pigdog
As specified in Congressional bill H.R. 25/S. 25, the FairTax is a proposal to replace the federal personal income tax, corporate income tax, payroll (FICA) tax, capital gains, alternative minimum, self-employment, and estate and gifts taxes with a single-rate federal retail sales tax. The FairTax also provides a prebate to each household based on its demographic composition. The prebate is set to ensure that households pay no taxes net on spending up to the poverty level.
Bill Gale (2005) and the President’s Advisory Panel on Federal Tax Reform (2005) suggest that the effective (tax inclusive) tax rate needed to implement H.R. 25 is far higher than the proposed 23% rate. This study, which builds on Gale’s (2005) analysis, shows that a 23% rate is eminently feasible and suggests why Gale and the Tax Panel reached the opposite conclusion.
This paper begins by projecting the FairTax’s 2007 tax base net of its rebate. Next it calculates the tax rate needed to maintain the real levels of federal and state spending under the FairTax. It then determines if an effective rate of 23% would be sufficient to fund 2007 estimated spending or if not, the amount by which non-Social Security federal expenditures would need to be reduced. Finally, it shows that the FairTax imposes no additional real fiscal burdens on state and local government, notwithstanding the requirement that such governments pay the FairTax when they purchase goods and services.
(Excerpt) Read more at people.bu.edu ...
You are, simply, wrong once again.
If the gross wages are $100,000 then there is a FairTax of $23,000That would be a percentage on. The Fairtax is a percentage of, maybe you missed "the clear language of the bill"...doesn't matter, the difference between a tax of or a tax on is obviously beyond your capabilities to comprehend.
What's really sick, aside from your obsession with the rate, is even if your 23% non-sense was correct (which it isn't) you think the governments having to suck an additional 23% out of the economy is a good thing...
30% or 23% doesn't change the fact you and your sock puppets are fools for falling for or cheering on any part of it.
If you don't believe that see post #838 where it's clearly proven that:
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages.
It's been proven to you many times by many posters on this and numerous other threads that:
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
Your constant and purposely misquoting of the bill (in an attempt to mischaracterize the fairtax, and not successful I might add) doesn't change the fact that:
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
government non-educational wages are taxed at 23% of the gross wages
The post was to illustrate the Principled was wrong in 795.
Principled post 795: There is no "fairtax" on government wages.
pigdog post 860: No Looey - it's a 23% tax on non-educational government employees.
See you guys are saying two completely different things. My post illustrated Principled was wrong and pigdog confirmed it. Of course pigdog is too busy thinking I was ignorant to see what I was illustrating.
see post 864
As long as by 'gross wages' you mean what the employee recieves plus the fairtax, you are correct. But that is 23% inclusive tax, or a 29.87 exclusive tax. Just what everyone has been saying all along. Of couse by gross wages we mean what currently shows up on their paycheck and you are talking about something else that includes the new fairtax. We are talking exclusive and you are talking inclusive.
Sorry Nightie. The derivation in the economic study shows these wages are taxed at 23% for this class of employee rather than the 29.87% (or more you were all insisting upon).What is the post number where you think you showed this?
I think this was revealed to pigdog by voices in his head.
Anyone who actually read the bill knows all the bill talks about are taxes on 'gross payments' which by defintion includes the fair tax. All fairtax amounts are inclusive rates. But trying to get truth out of these guys is impossible.
The definitions of taxable employer and taxable service operate together to require that wages paid by a government agency (as a taxable employer) are taxable and the tax must be remitted by the government agency to the state sales tax authority.When you aren't wrong your lying when you aren't lying your wrong.
The part of the bill that taxes government wages is not a taxable sale. That makes it different than the "fairtax" on a cleaning lady - who sells a service.
You're wrong. I'm happy to let you continue. A little reading would help you. I have no interest in helping you understand.
Again, you and robbie are the only ones saying this. YN doesn't say it because he understands. He just enjoys word games. Read his posts carefully. You and Rob are alone, ignorant on this.
Well if it counts, Pigdog says it too. And why does Kotlikoff include government wages as part of the fairtax base. I did a little reading, and what I read supports my position. There is no exceptions for most government wages.
Of course, you mean like drug dealers do now. How silly of me - every merchant will set up shop on Main Street, will be legal, will have a certificate, and be audited.
Neither you nor anyone else has ever presented a serious study that defines any sort of "black market" activity as being anything but a minor amount financially (if that). And a seller intentionally violating the law will have many tools arrayed against him.
There you go again, its minor when we're talking about the virtues of the FairTax and huge when we're talking about taxes evaded by black market activity now.
And there certainly aren't "so many" people thinking black market as you claim. The only ones I notice doing so are those like you who are trying to find any sort of tool to bash the FairTax with whether valid or not ...
You've got the parts right, but in the wrong order - potential for black market activity is one of the glaring flaws in the FairTax that is glossed over by the FairTaxers and makes the scheme unworthy of support.
See, the flaw is noticed first, questions are asked, answers are unsatisfactory, scheme looks like a bad deal.
Both things are true.
OK, great. We're making progress.
Now that you've recognized the FairTax black market potential, what action will government take to plug the holes?
During the energy crisis in California, interest in solar power exploded. Companies doing home installation were booked solid 6 months in advance. Dairy farmers, who require a reliable supply electricity to stay in business, began generating their own from methane gas produced from cow dung.
It would be interesting to see if the 30% tax on utilities is high enough to stimulate another round of consumers abandoning the grid.
As an aside, an electric car is being produced and sold that can be recharged through a rooftop solar unit.
Again, you and robbie are the only ones saying this. YN doesn't say it because he understands.There is a tax on noneducational government wages. The exclusive rate is 29.87%.
I've backed up everything I've said across numerous threads, I see no reason to attempt to explain any of it to you again.
You are welcome to your opinion that I have no credibility on these boards, I feel the same about your lack of credibility and that of the handful of FairTax proponents that will create any deceit necessary to try and prop up this misguided double-counting pathetic tax scheme.
Of course, a 30% FairTax would cause price inflation. And of course a 30% FairTax would seriously deflate the value of after tax saved dollars. Your arguments to the contrary are just wrong.
You sound like a barking moonbat when you start doing your late-night posts...
There is a tax on noneducational gov't wages, but...
Your statement is ambiguous (purposefully). Your old boss knows it's 23% of wages, and so do you.
What would be required by law to remit on $100 of noneducational government wages?
Nice insults Rob. But thanks for refraining from posting animals screwing again.
Great answer. Sort of like a lib losing an argument and calling someone a "reactionary"..
Still waiting for those econmic reports whenever you're ready.
Except I didn't lose any argument, I was just responding to your post comparing me to Howard Dean and calling me a shill...
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