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To: Your Nightmare
No, the prebate is not taxed UNLESS it is spent - but that's not the discussion. With the Calculator, the use of the prebate is to reduce taxes to give one an accurate comparison between the two systems.

We seem to be saying different things. You're saying the prebate can be spent and certainly it CAN. It can also be saved and not spent. Either is beside the point of the use of the prebate in the Calculator where it is intended to reduce taxes paid - it's conceived use as a tax rebate - so that an accurate comparison between the two systems can be made on an even basis.

It isn't an "error" at all but, apparently, a use which you do not understand. If anything, forcing in into spending would be an error from the standpoint of the Calculator since that would increase spendable income with no offsetting increase in spendable income on the income tax side thereby biasing the results in the Calculator.

563 posted on 10/23/2006 11:53:44 AM PDT by pigdog
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To: pigdog
It isn't an "error" at all but, apparently, a use which you do not understand. If anything, forcing in into spending would be an error from the standpoint of the Calculator since that would increase spendable income with no offsetting increase in spendable income on the income tax side thereby biasing the results in the Calculator.
No, by not including all the FairTax a person would pay you are reducing the gross tax paid. And then when you reduce the gross tax by the "prebate," you get an erroneously small net tax paid.

What a shock it is that this error benefits the FairTax comparison.
564 posted on 10/23/2006 12:02:43 PM PDT by Your Nightmare
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