Posted on 11/06/2005 10:58:26 AM PST by Eaglewatcher
The Fair Tax Act of 2005 – HR 25/S 25 plain English summary
The Act is called the “Fair Tax Act of 2005.”
As of Dec. 31, 2006, it repeals all income taxes and payroll taxes, specifically:
*The individual income tax (including capital gains taxes and the alternative minimum tax)
*The corporate income tax
*All individual and employer payroll taxes including Social Security, Medicare and federal unemployment taxes
*The self-employment tax (a self employed person pays both the individual and the employer portions of Social Security and Medicare taxes)
*The estate and gift tax
Effective January 1, 2007 it replaces the above taxes with a national retail sales tax on all goods and services sold at retail, except that used goods are not taxed. The tax rate is set to be revenue neutral – at the level necessary to replace the revenues generated by the repealed taxes.
A 23-percent (of the tax-inclusive sales price) sales tax is imposed on all retail sales for personal consumption of new goods and services. Exports and the purchase of inputs by businesses (i.e., intermediate sales) are not taxed. The sales tax must be separately stated and charged on the sales receipt. This makes it clear to the consumer what the amount of the tax is and that he or she is paying it.
The FairTaxSM provides every family with a rebate of the sales tax on spending up to the federal poverty level (plus an extra amount to prevent any marriage penalty). The rebate is paid monthly in advance. It allows a family of four to spend $25,660 tax free each year. The rebate for a married couple with two children is $492 per month ($5,902 annually). Therefore, no family pays federal sales tax on essential goods and services and middle-class families are effectively exempted on a big part of their annual spending.
Funding for Social Security and Medicare benefits remains the same. The Social Security and Medicare trust funds receive the same amount of money as they do under current law. The source of the trust fund revenue is a dedicated portion of sales tax revenue instead of payroll tax revenue.
States can elect to collect the federal sales tax on behalf of the federal government in exchange for a fee of one-quarter of one percent of gross collections. Retail businesses collecting the tax also get the same administrative fee.
Strong taxpayer rights provisions are incorporated into the Act. The burden of persuasion in disputes is on the government. A strong, independent problem resolution office is created. Taxpayers are entitled to professional fees in disputes unless the government establishes that its position was substantially justified.
tax ping
It appears that there is some confusion on exactly what the FairTax is.
Only among its opponents as far as I have seen.
The FairTax legislation has been on the scene and before Congress since 1998 when it was first introduced as a retail sales tax replacing all federal income/payroll and gift estate taxes as clearly laid out in the text of its introduced bill, H.R.25.
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
confusion by the lawyers and judges -- who else cannot understand what the meaning of the word *IS* is?
When the scum suckers are gone, the world will be a much nicer place to live.
Most lawyers and judges are afflicted with "patriophobia" --- a deathly fear of freedom loving Americans.
What has happened on this since it went to the House Ways and Means Committee back in January. Is there new activity?
please add me to your list
Let me give a very plain simple explanation to all of this;
All of your monies,land,childern,ect... belong to the federal goverment and we own you all & there is nothing you can do about it either!
Welcome aboard! you are now on the pinger.
Please put this pig eating infidel on the ping list as well TIA - Give us the fair tax or get out of our country.
All of your monies,land,childern,ect... belong to the federal goverment and we own you all & there is nothing you can do about it either!
And thus we should all just go in the corner and cry like good little slaves.
| I discussed the importance of abolishing the income tax because of its tendency to form a habit of servility in the souls of a people that accepts it. Servility of soul is bad not only in itself, it is also an open door through which will soon walk the abuses of ambitious government power. Leaders who find themselves with governmental power over a servile people will be quick to conclude that such a people exist to serve them. |
Got yah covered! welcome aboard.
Past time to chuck the IRS yoke. The Fair Tax is the only game in town. It's the ONLY way to tap the underground economy, which if anyone in DC operated with any logic whatsoever, one would think they'd be all over this. Of course, if you profit from the underground (ILLEGAL's, Drug War, etc...,) one would fight this tooth and nail. Heck, one might even come onto a Conservative forum and champion the IRS remaining intact with some bull about a Flat Tax, wouldn't one!? Blackbird.
Another reason to support Fair Tax is that by abolishing the IRS, we remove a resource used by Hillary and her ilk who use it to intimidate, punish and coerce.
I'm not for protecting specific industries, but one has to remember that much of the economy is based on the whim of consumers. Are there any other countries that have instituted such a tax where we could look at the results.
You do have a great point about tapping into the "off the books" economy. I would like to see those people have to pay tax as well.
I doubt it, but who know's? Maybe short term. Don't forget, all retail items already have an enourmous Tax burden built into the price. Think about taking your FULL paycheck home every week. Most of US are born Consumer's, so I do doubt there will be any long term impact on any retailer. Just my opinion of course. ancient_geezer could probably shed a little more light on the specifics of that. Blackbird.
They are an oppressive bunch. Maybe shutting them down would have an impact on some of the other ABC goon squads and their political attitudes? Blackbird.
Good point about the tax burden on prices. I did not think about what might happen to retail prices when the companies providing the products don't pay payroll tax.
best places to keep up with the FairTax are: Americans for Fair Taxation website http://www.fairtax.org or the Neal Boortz website http://boortz.com/.
Stick a fork in it; it's dead.
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