[Smokin' Joe]

1) The Federal Reserve have no control over tax policy, period. To mention them in a tax discussion is the most crimson of red herrings.

Actually, SAJ, if the interest charged on a loan is a taxable service fee, which I have read it would be if the item purchased is new, then the Fed's rate setting would amount to setting the rate of interest on the loan indirectly, and would affect the amount of tax paid on any purchase made on credit.

Needless to say, the big ticket item market would be bit twice, once on the principle and once on the interest, which the Fed controls by controlling the prime rate.

Near as I can figure, anyway. Tough to tell from the smoke and mirrors.

[SAJ]

Joe, I believe you're spot on; any actual influence the Fed have is derivative, and certainly does not come from statute.

However, who the devil knows the whole score, eh? The 'fair' taxers are, presumably deliberately, keeping lots and lots of detail either unspoken or in the dark.

Drill the Bakken for all it's worth, m'friend. G-d knows we need SOME bloody production in this nation!

Best to you, as ever.

[lewislynn]

Actually, SAJ, if the interest charged on a loan is a taxable service fee, which I have read it would be if the item purchased is new, then the Fed's rate setting would amount to setting the rate of interest on the loan indirectly, and would affect the amount of tax paid on any purchase made on credit.

Actually the tax on interest is on any loan (new or used) purchase. The tax is 30% ON the difference between the rate you pay (or earn) and the coresponding Fed fund rate, which is determined monthly by yet another appointed pinhead called a secretary.

Go to HR25: `SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT. under `(3) IMPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES.

You can be one of very few to ever read it including the chest pounding, book thumping Fairtax parrots.