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To: junaid
1) People who now pay no income tax will contribute to federal revenues through their purchases. This should add some more money to federal coffers.

They get a "prebate" of the tax that they will pay, so they still pay nothing. THe supporters of the plan are careful to point out that the freeloaders will not pay taxes. And the middle class will pay less, and the rich will be better off, and the government will still have the same amount of revenue.

157 posted on 08/03/2005 8:10:26 PM PDT by RobFromGa (This tagline is on August recess...)
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To: RobFromGa

I was actually referring to the drug dealers, illegals, etc. who pay no income tax. These people will now contribute through their purchases. I understand that unless prices rise these people will not notice a difference, but the goods they buy will now contribute to federal coffers, not just to state and local coffers through their respective sales taxes. I would hope the illegals would not get the prebate--but I would also hope they wouldn't get drivers licenses either. Some politico, I'm sure, would find a way to give them their prebate since they have to buy food like the rest of us. But I digress.


160 posted on 08/03/2005 8:22:55 PM PDT by junaid
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