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To: ancient_geezer

Can you post that graph of effective Fair Tax rates by spending level?


32 posted on 03/05/2005 8:41:31 AM PST by Principled
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To: Principled

Can you post that graph of effective Fair Tax rates by spending level?

Glad to oblige:

Under the Fair Tax Act with its FCA, a family of four, for an 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.

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 tax law, (NRST Expenditure = income; 2004 individual income tax on wages plus FICA/MC taxes, standard deduction, personal exemptions,child credits, and EITC):

 

If you do not see the graph, click here

H.R.25 "The FairTax Act

Not only does every family receive a FCA based on family size, not income, but they will also receive 100% of their paycheck.

76 posted on 03/05/2005 9:48:10 AM PST by ancient_geezer (Don't reform it, Replace it!!)
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