Posted on 11/04/2004 7:08:31 PM PST by MNJohnnie
WASHINGTON (AP) - Contending Americans have embraced his conservative agenda, President Bush pledged Thursday to aggressively pursue major changes in Social Security, the tax code and medical malpractice awards, working with Democrats if they are receptive and leaving them behind if they're not.
"I earned capital in the campaign, political capital, and now I intend to spend it," Bush said a day after a decisive victory that made him the first president in 68 years to win re-election and gain seats in both the House and Senate.
"I'll reach out to everyone who shares our goals," said Bush, who 24 hours earlier had promised to try to win over those who voted for his Democratic opponent.
(Excerpt) Read more at apnews.myway.com ...
Bookmark.
Good point.
I think that rather than giving people full exemption, which would indeed be an incentive for fraud, they could keep track on the card of the purchases, and exempt the first 1,000 spent from taxes, then if they don't show the card, or show the card, it could be seen that they are spending over the allotted non-taxable allotment and they would have to pay the sales tax.
I don't like graduated sales tax, but taking your idea of the card modified as above could work well.
I was thinking about the poverty income thing. Instead of rebates, why couldn't the IRS or state DOR issue a card, a kind of ATM/Drivers' License type card, with the persons photo ID and Soc. Sec. #, to those who qualify. At the point-of-sale the customer gets his/her card scanned/swiped/whatever, and is exempted from paying the tax. The card would need to be 'renewed' periodically (to deter fraud if a poverty person finds a better job).
Nothing so complicated is required. Single rate at the cash register fixed payment each month to all households regardless of actual income or expenditure based only on household size.
No ID necessary for purchases. At the cash register everyone is treated precisely the same. The NRST is administered and collected exactly the same as state retail sales taxes are today, single rate, all new goods and services are taxed with no exception.
For the progressivity side, all legal residents will receive a demogrant called the Family Consumption Allowence(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 paid to all households regardless of income or actual expenditure.
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 $24,980 per year free of tax because they will have received over the course of the year a demogrant totaling $5,745. $5,745 is the amount of sales tax paid on $24,980 in expenditures. That family spending double the "poverty level" or $49,960per 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%.
To illustrate examine the tax burden that a family of four will have at various annual expenditure levels as compared to that same family under the current system:
"it would be viewed as fair, that it would be a fair system, that it wouldn't be complicated, that there's a -- kind of that loopholes wouldn't be there for special interests, that the code itself be viewed and deemed as a very fair way to encourage people to invest and save and achieve certain fiscal objectives in our country, as well. "
That sounds good to me:
http://www.fairtax.com
got yah on the pinger.
Now getting off, that may be another matter ;O)
If a child/teenager, under 18, still living with their parent(s), had a job, would that child get their own FCA?
...or would that childs' income need to be reported by the parents?
"it would be viewed as fair, that it would be a fair system, that it wouldn't be complicated, that there's a -- kind of that loopholes wouldn't be there for special interests, that the code itself be viewed and deemed as a very fair way to encourage people to invest and save and achieve certain fiscal objectives in our country, as well. "
Think maybe he's been talking to somebody? LOL.
H.R.25Fair Tax Act of 2003 (Introduced in House) |
YEP...it's MY MONEY!
If a child/teenager, under 18, still living with their parent(s), had a job, would that child get their own FCA?
Person selected by the household would receive the payment for all members of the family in the household.
H.R.25Fair Tax Act of 2003 (Introduced in House)
`SEC. 301. FAMILY CONSUMPTION ALLOWANCE.
`SEC. 302. QUALIFIED FAMILY.
|
...or would that childs' income need to be reported by the parents?
Income is not a factor, thus not reported for anyone in the family. Just household size and SS#s and ages and where and to whom to send the check.
Neither income nor wealth are taxed nor the basis of qualifying for the FCA.
As a point of fact registering for the FCA is not mandatory. If you don't want the FCA, you are not required to file squat.
OK, sounds good.
So you think Dubya, by using the word 'fair' a lot today, was hinting that he would propose a plan like 'Fairtax'?
Hmmmm, would Barbra Striesand apply for an FCA or not?
He definitely has been briefed on the legislation, and knows it well.
You can't hardly run as a Pubbie for national office out of Texas without knowing about it ;O)
Hmmmm, would Barbra Striesand apply for an FCA or not?
Ask her. She take personal tax exemptions and deductions under the income tax?
Well the Dems would definitely dig their heels on the 'one rate for everybody' idea.
Also, you'd have to make it next to impossible for Congress to tinker with it,
otherwise the tax bureaucracy snowball would start all over again.
Good point, would you still need the IRS to administrate 'Fairtax'? (I'd think it could be downsized quite a bit)
ping
The good thing is once people start to pay-as-they-go, everyone will be converted to tax hawks instantly!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.