Get it?
This post has to do with the implications of replacing the Federal income tax with a Federal flat value added tax, and everything that you posted has to do with a system that would be scrapped.
This thread has to do with a National RETAIL Sales Tax, replacing all federal income and payroll taxes (e.g. SS/Medicare).
No VAT is involved as the retail tax is collected only from sales of goods and services for final consumption, and is not collected on purchases for business use as VATs are collected.
The NRST implemented by the FairTax legislation would be collected from the consumer, not from intermediate sales of good or services used for business purpose.
As I understand the Fair Tax Bill employers will no longer "deduct "my" taxes for me.....so instead of receiving $70.00 out of a $100.00 paycheck I will receive $100.00.
So....before, the most i had to spend was $70.00 for that week
Now I have a hundred....the item I bought last week for $70.00 left me $0.00.....
This week i have a $100.00 in my pocket to spend......I go and buy the same $70.00 item PLUS 23% NRST and I spend....$86.10 w/tax.....or $90.91 w/tax if it is an inclusive tax (a little confused on how the tax is figured) (as a sidde note: if i go out and buy an upgraded item on credit for 100.00 plus NRST i am an idiot...but that's another discussion.....there is a learning curve involved under the NRST......)
Either way i have $9.09 - $13.90 left over in my pocket....which i can go spend on something else...."living paycheck to paycheck here....LOL"
Regardless....i am better off....i have more money to save....spend....burn....whatever.....and this does not take into accout..... POSSIBLE LOWER RETAIL PRICES!!!!!
This post has to do with the implications of replacing the Federal income tax with a Federal flat value added tax, and everything that you posted has to do with a system that would be scrapped.Not a VAT either.Not sales tax. Period.
Don't take my word for it...Here's from the Fairtax bill (HR25)
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.`(b) Rate-
`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.