Consumption taxes replacing income taxes would DRAMATICALLY shift the tax burden from those that make higher incomes to those who make lower incomes.
You haven't bothered to read the legislation or find out about the NRST have you.
All legal residents will receive a FCA equivalent to the FairTax paid on essential goods and services. The FCA will be paid in advance, in equal installments each month. The size of the monthly FCA will be determined by the government's Poverty Level for a particular family size, multiplied by the tax rate.
Every year, the Department of Health and Human Services [HHS] determine the "poverty level" for each family size.
The 2001 "FairTax" Family Consumption Allowance Figures |
|||
Family Size |
HHS Poverty Level |
Annual FCA |
Monthly FCA |
One |
$8,590 |
$1,976 |
$165 |
Two |
$17,180 |
$3,951 |
$329 |
Three |
$20,200 |
$4,646 |
$387 |
Four |
$23,220 |
$5,341 |
$445 |
Five |
$26,240 |
$6,035 |
$503 |
Six |
$29,260 |
$6,730 |
$561 |
Seven |
$32,280 |
$7,424 |
$619 |
Eight |
$35,300 |
$8,119 |
$677 |
1) Federal Register: February 16, 2001, Pages 10695-10697).
[ The monthly FCA for each adult is .23 * (HSS poverty level for a single person)/12 to assure no marriage penalty due to the manner in which the poverty level is dependant on family size. The monthly FCA for each child is .23 * (the incremental increase of HSS poverty level for a family with one child over no child) ] A. Geezer
A family of four, for example, could spend $23,220 per year free of tax because they will have received over the course of the year rebates totaling $5,341. $5,341 is the amount of sales tax paid on $23,220 in expenditures. A family spending double the "poverty level" or $46,440 per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.
The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.
[71] To illustrate the plan's progressive nature we can examine the tax burden that a family of four will have at various annual income levels (or in this case, annual spending levels).
Not only does every family receive a FCA based on family size, not income, but they will also receive 100% of their paycheck:
Fedup Smith makes $39K per year...once the FairTax is the law of the land he will receive an instant increase in pay of $200.00 per week. Since he has a family of four, he will receive a FCA of $445 per month, for a total of $1,305.00 additional income per month that he can do with as he sees fit
No change any repeal of the 16th Amendment
LOL, not enough anyway, read the article again.
gets a floor vote in either house anytime soon, much less receive 2/3 of each house and 3/4 of the states to ratify.
That is why it is necessary to work for replacement of the income tax statutes first. Make the income tax obsolete, the appropriate amendment to PROHIBIT all income and payroll taxes will happen much sooner.
We are much closer than you may realize to the repeal of the statutes and the NRST.
Last session of congress there weres only 7 co-sponsors and a bill in the house.
Today there are the sponser & 43 co-sponsors with a bill in the house 2 sponsors for the sister bill introduced in the senate.
As well as support growing through out both houses of Congess,
and among challenger running with the NRST in their campaigns.
Time to put that stake in the heart of the income/payroll tax system and the IRS, and the National Retail Sales Tax bill HR25 is the way to do it.
Congress Critter's In the News
Senate
Herman Cain, position regards tax reform, May 9 2002:
House
Dennis Umphress, libertarian (California 16th District)
With more out there each day the election season advances.