Posted on 08/17/2005 4:28:06 PM PDT by witchypooy
Wrong-O, Nightie ... and most people with common sense realize this so you may as well stop the nonsense. Your defenses of he Status Quo is both misguided and humorous.
No, they won't. The FairTax is no a VAT and cannot be made into one. It is far more simple, efficient, less costly, and transparent that a VAT.
In addition the FairTax taxes only end use consumption rather that cascading (as does a VAT). The VAT then requires the buyer to attempt to get his money back through various supplications to the government. We all have had enough of supplications to the merciful and loving IRS.
Wrong-O, Nightie ... and most people with common sense realize this so you may as well stop the nonsense. Your defenses of he Status Quo is both misguided and humorous.You're kidding, right? Are you really questioning this?
"Questioning" it - no. I'm saying you're wrong and the most likely result is for for prices to rise ... it's called "embedded tax costs" and most people with a grain of common sense recognize that to recover these costs prices will rise.
You're kidding, right? Are you really questioning this?
This is just proof that the truth doesn't matter to you.
But then, you've routinely and repeatedly demonstrated that on these threads.
So tell me, is ignorance truly bliss?
If so, Nightie, you should be happy as a lark for many decades to come.
This is just proof that the truth doesn't matter to you.Either way it doesn't amount to very much...but don't take my word for it.
"A couple of the opinions attempt the "... it's a wash ..." argument that you seem to prefer. It looks no better in their opinion that in yours and is easy enough to refute by taking, say, a $100 drug sale. The sale is not taxed under either IT or FairTax. Under the FairTax when spent by the drug dealer, the tax revenue gained is $23. Under the IT, the ONLY revenue gained (if any) would be at most the profit on the thing sold to the drug dealer ... let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75. This falls far short of the $23 tax "contribution" under the FairTax so the "it's a wash" arguments are nonsense no matter who makes them."We both know a "margin" isn't all profit and that a "margin" is for profit AND overhead...but giving benefit of doubt, even if a "good margin" was all profit it's at best 3.75% tax....again don't take my word for it, pigdog said so himself.
That's fine, Looie, if you wish to define profit as only part of margin; that'll just reduce the "tax contribution" from $3.75 to something even less and make the example even mo' bettah' in favor of the FairTax. Shall we say the profit is, then, 15% - making the "tax contribution" $2.25???
Or perhaps you'd like to do the arithmetic (and no, Looie - it's not math; its arithmetic).
under the present system a max of half of social security income can be taxed and it is taxed at your marginal rate, in my case 10% for a max tax on my expected social security payments of about $950. under the fair tax system assuming i spend my social security payments the full amount would be taxed at approximately 23% for a total tax of about $4000 on social security payments alone.
as i said, they will have to fix this or it won't fly.
NO income is taxed under the FairTax until (and if and when) you spend it on taxable things ... and not everything is taxed. You need to inform yourself more thoroughly on how the FairTax operates. And recognize also that you receive a prebate each month (which also is not taxed until, etc. spent).
You have far more faith in elected representatives than I do.
When the dems are back in charge they'll go at the Fair Tax with hammer and tongs. Since no IRS will exist, the quickest way to raise taxes is to convert the Fair Tax into a VAT.
It's not a matter of "faith" at all.
Once the FairTax is law it will have a VERY large constituency in the form of millions and millions of taxpayers who then realize for sure that it was indeed a "good thing" and allowed prices to be lowered and takehome pay increased - not to mention relieving us of the IRS.
A VAT type of law would drastically change all of that and have the effect of raising prices as well as administrative expenses and political mischief which cannot be present under the FairTax but presently is in many VAT countries.
A VAT is, by nature, a greatly hidden tax system while the FairTax is a greatly visible one. After enjoying the FairTax benefits, the politicians would be tarred and feathered to even try to institute a VAT.
With the FairTax, Big Brother has left the building.
nobody is lieing to me. i am just reading the law. i intend to spend every nickel of my social security payments and i will therefore be taxed at approx 23% on all of it vice the current 10% on a max of half of it. i would have liked this law when i was a wageearner but i hate it now that i am retired and ready to draw my social security.
If you spend it all you'll have to be sure you spend it all on taxable things and that you spend so much that you're way above where the prebate decreases the effective rate. That would be a good bit of spending over and above just your S/S.
You should check the FairTax website and figure out your efective rate might be with the prebate etc. It's frequently quite a bit less than the maximum 23%.
http://www.fairtax.org/tax_returns_ss.html
In addition, though, when you spend that S/S amount under the present system you'll actually be paying a lot more than the 10% you state in the form of prices that are raised by 20-25% by the effects of hidden taxes which are embedded tax costs that raise all prices - that's also a tax that is eliminated with the FairTax.
Actually a lot better than even a year ago. The voluntary Comments sent to the Presidents Tax Panel by those supporting the FairTax outnumbered all the rest supporting other tax plans combined.
It is becoming widely known and as more and more people understand it it will gain even wider support. The recent book called The FairTax Book which will be #1 on the NYT Best Seller List for at least two weeks in a row is gathering even more support as we speak and the number of those joining the FairTax movement is now 5,000 new folks each day - and it was already 600,000 some time ago.
So hang in there - the fight is about to begin ...
cool. thanks!
ping for later
Looks like I'm one of the 10%.
I wish I had your faith brother.
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