So, in effect, if I'm a blue collar worker with a family of six to feed and groceries cost $400 a week, then under the Fair Tax plan, I could end up spending half my take home pay on food. Conversely, if I'm a rich guy feeding my family of six, groceries will cost about 1/10 of my weekly income?
So, in effect, if I'm a blue collar worker with a family of six to feed and groceries cost $400 a week, then under the Fair Tax plan, I could end up spending half my take home pay on food. Conversely, if I'm a rich guy feeding my family of six, groceries will cost about 1/10 of my weekly income?
Yep, and both receive the FCA sales tax rebate, covering the NRST up to the HHS povertylevel of consumption.
Married six kids, the sales tax rebate for that family of 6 kids would be $723 per month covering taxes on $3,143 expenditures per month.
Instead of opening the political and administrative rats nest of excepting specific items or persons from paying the NRST at the cashregister, the Fair Tax Act(H.R.25) provides what amounts to a personal exemption in the form of a demogrant that all legal residents and dependants will receive; a monthly amount called the Family Consumption Allowence(FCA) equivalent to the FairTax paid at the HHS defined poverty level of expenditure. The FCA is paid in advance, in equal installments each month by check or electronic tranfer to bank account from the Social Security Administration.
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, and paid to all households regardless of income or actual expenditure. The HHS poverty llevel is a well-accepted, long-used poverty-level calculation based on the cost of a healthy diet comprising 1/3 of total family budget value Essentially, the poverty level is defined to be 3 times the retail cost of food.. The HHS povertylevel statistic is fixed in 1969 dollars updated annually for CPI including sales and excise taxes and published annually in the Federal Register.