And furthermore, I don't think that most retirees pay anywhere close to 17% federal taxes on their withdrawals from retirement accounts.
Rob Rob Rob --- Oh Rob
Come on; you know the facts and you know the whole package.
And furthermore, I don't think that most retirees pay anywhere close to 17% federal taxes on their withdrawals from retirement accounts.
You know the answer before I waste time telling you an answer you have already heard form others.
PREBATE - PREBATE- PREBATE.
In Fact, I wll show you an example where the Senior couple has a 0% federal income tax rate and still comes out better with the Fair Tax and a conservative 10% price drop.
Look at this Senior couple living solely on Social Security.
http://www.fairtax.org/tax_returns_ss.html
Now lower the price drop(embedded taxes) by more than half to my conservative 10%. That means a price drop on spending of +$2594 and a Fair Tax Sales tax total of -$6980 and a prebate of $4,402.
Even with the more conservative adjustment, This Social Security couple with a 0% federal income tax rate comes out ahead by $16 for the year.
Not hurt at all in this scenario. Plus they have the option to buy used on many things to save.
But the Senior couple with no Savings and No IRA and a 0% federal income tax rate comes out better or neutral with the Fair Tax switch.
Leaves a much better tax system for their Grandchildren.
And, presumably, since you're so hooked on documentation you have the documentation for that but just "forgot" to include it.