Table two: national FairTax rate calculation: 2003 |
Line |
Description |
FairTax base |
Source |
|
Taxable item |
Billions |
|
1 |
Personal consumption expenditures |
$ 7,760.9 |
NIPA Table 1.1.5, line 2 |
2 |
Purchases of new single-family homes |
$ 310.6 |
NIPA Table 5.3.5, line 20 |
3 |
Purchases of new mobile homes |
$ 7.1 |
NIPA Table 5.4.5B, line 40 |
4 |
Improvements to single-family homes |
$ 132.0 |
NIPA Table 5.4.5B, line 42 |
5 |
Less: imputed rent on owner-occupied housing |
$ 859.6 |
NIPA Table 7.4.5, line 3 |
6 |
Less: imputed rent on farm housing |
$ 11.9 |
NIPA Table 7.4.5, line 5 |
7 |
Additional financial intermediation services |
$ 83.1 |
Financial & risk Intermediation greater than NIPA definition |
8 |
Foreign travel by U.S. residents |
$ 39.6 |
One half of NIPA Table 2.5.5, line 110 |
9 |
Less: expenditures abroad by U.S. residents |
$ 6.6 |
NIPA Table 2.5.5, line 111 |
10 |
Less: food produced and consumed on farms |
$ 0.5 |
NIPA Table 2.5.5, line 6 |
11 |
State and local government consumption |
$ 1,058.5 |
NIPA Table 3.10.5, line 47 |
12 |
Gross purchases of new structures |
$ 213.4 |
NIPA Table 3.9.5, line 24 |
13 |
Gross purchases of equipment |
$ 51.5 |
NIPA Table 3.9.5, line 25 |
14 |
Federal government consumption |
$ 658.6 |
NIPA Table 3.10.5, line 12 |
15 |
Gross purchases of new structures |
$ 15.5 |
NIPA Table 3.9.5, line 9 |
16 |
Gross purchases of equipment and software |
$ 78.1 |
NIPA Table 3.9.5, line 10 |
17 |
Less: state and local government sales taxes |
$ 343.9 |
NIPA Table 3.3, line 7 |
18 |
Less: government education expenditures |
$ 414.7 |
Table 255, SAOUS 2003 |
19 |
Less: private education expenditures |
$ 151.7 |
NIPA Table 2.5.5, lines 105 & 106 |
20 |
Expenditures in U.S. by non-residents |
$ 86.7 |
NIPA Table 2.5.5, lines 112 |
21 |
Travel to U.S. by non-residents |
$ 33.3 |
One half, SAOUS 2003 Table 1280 |
22 |
National retail sales tax base |
$ 8,740.0 |
|
Revenues to be replaced |
|
|
23 |
Income tax |
$ 927.7 |
Dept. of Treasury; derived from Table B-81 ERP 2004 |
24 |
Estate and gift tax |
$ 22.4 |
Dept. of Treasury; derived from Table B-81 ERP 2004 |
25 |
Payroll taxes |
$ 717.8 |
Dept. of Treasury; derived from Table B-81 ERP 2004 |
26 |
Excise taxes |
$ - |
|
27 |
Total |
$ 1,667.9 |
|
Revenue-neutral rate calculation |
|
|
28 |
Tax exclusive rate (no rebate) |
19.1% |
|
29 |
Tax inclusive rate (no rebate) |
15.9% |
|
30 |
Base reduction equivalent for rebate |
$ 1,746.1 |
Total consumption allowance for 109 million rebate units |
31 |
Net tax base |
$ 6,993.8 |
|
32 |
Tax exclusive rate (with rebate) |
23.8% |
|
33 |
Tax inclusive rate (with rebate) |
19.3% |