Ah, I see. The new tax is actually going to be hidden in the price already? Nice. No hidden taxes, huh? Just include it in the price. Wonder what else they'll be able to simply slide in there without the consumer realizing?
Maybe you should contact fairtax.org and have them correct their answer for FAQ #47, then. Even there, it plainly states "You earn $100. You keep $100. Choose to spend $77. FAIR TAX RATE 30% Gov't gets $23"
If this a true National Sales Tax, why not quote it as a Sales Tax? How is it tax relief if everyone will be paying the same in taxes and in some cases, more? How much will be added to the budget to pay for the mega-beauracracy that will be needed at each state and at the Federal level for the Adminstering Authority?
I like the way the bill eleminates the IRS and all the troublesome paperwork and reporting; "Sec.406. General Adminstrative Matters. (a) In General. -- The Secretary and each sales tax adminstering authority may employ such persons as may be necessary for the admninstration of this subtitle and may delegate to employees the authority to conduct interviews, hearings, prescribe rules, promulgate regulations and perform such other duties as are required by this subtitle." Sounds like the beginning of a monster equivalent to or worse than the IRS to me.
"SEC.501.MONTHLY REPORTS AND PAYMENTS. (a) Tax Reports and Filing Dates -- (1) In General -- On or before the 15th day of each month, each person who is -- (A) liable to collect and remit tax imposed by this subtitle by reason of section 103(a), or (B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a), shall submit to the appropriate sales tax adminstering authority (in a form prescribed by the Secretary) a report relating to the previous calender month.
It goes on to list just what all is to be all of these reports.
Also within this section under section (g), after defining Large and Small sellers, we find (g) SECURITY REQUIREMENTS -- A large seller (within the meaning of subsection (e)(3)) shall be required to provide security in an amount equal to the greater of $100,000 or one and one-half times the seller's average monhtly tax liability during the previous 6 calender months. Security may be a cash bond, a bond from a surety company approved by the Secretary, a certificate of deposit, or a State or United States Treasury Bond. ..... Failure to provide security in accordance with this section shall result in revocation of the seller's section 502 registration.
Nice and easy, no records, no paperwork, just less cost for everyone on everything. So, we'll go to the counter and buy a one dollar item, pay the Fairtax rate of 30% (as quoted at fairtax.org), send 23 cents off to the government (if it remains that low) and end up having an item that used to cost maybe 50 cents or so, before companies had to add in increased administrative, labor and compliance costs, not to mention wishing to still be profitable enough to pay shareholders. Such a deal
Again, I'll keep saying, if you want real tax reform, force Congress to cut back on excessive spending. Then, we could have a really fair National Sales Tax rate that wouldn't be anywhere near your 23% or fairtax.orgs quoted 30%.
I'm still waiting for one of you supporters of this white elephant to tell us all what the rate will be for the years after it's first year implementation of 2007.
You're the one who specified the "$1 item", not me. I was showing how much tax applied to that "$1 item". If you mis-defined it, that's your problem.
"You earn $100. You keep $100." Do you have some bone to pick with that??? Perhaps you'd rather have payroll and income tax withheld???
The FAIR TAX RATE you specify which is quoted as 30% for purposes of calculating the sales tax at it normally is calculated. In fact, the rate is calculated from the rate specified in the bill which is 23% which is t.i. (29.87 t.e.). The best rate to use depends upon the intended use.
The rate is not "hidden" in the price at all, but is clearly shown on the receipt.
"How is it tax relief if everyone will be paying the same in taxes and in some cases, more." I certainly don't know what you mean ... do you??? You can't be as stupid as that seems to indicate ... or can you??
Sec. 406 has nothing to do with the IRS. The IRS is eliminated elsewhere in the bill - which obviously you haven't read very thoroughly.
You post about Sec. 501 and say:
"It goes on to list just what all is to be all of these reports.". Had you gone on to read what was involved you'd see that the extremely large, complicated, bureaucratic report you're trying to pretend is there is nothing but about a 2 line report. Big deal!!! And the merchant is well paid to do that (which you also probably didn't read either).
Go off the deep end on your ravings elsewhere - or go post to Nightie since you seem to be birds of a feather. If you'd like to read the bill with some understanding and return and ask some genuine questions instead of trying to play "gotcha", you'd get a lot more informative answers from any of several posters.
Do you think you're the first attacker that has tried such horse-puckey??? Not by a long shot, pal. The FairTax threads have been going for 7 or 8 years or maybe more and a lot of your type have passed through on their way to nowhere. You make no sense and until you do you will certainly get few answers to any real questions you might have (if any).