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To: RavenATB
Okay, so the fact that the amount that's being 'prebated' isn't exactly what I would be taxed on basics that's irritating you?
No, the entitlement mentality irrtates me.
So, one month I might get back $10 more than I would if someone audited all my receipts, and the next month I might get back $15 less than what I actually pay.
Actually you get the same amount every month based on your family size whether you spend any money or not...you know, like a welfare check.

Why not increase the (GAG!) prebate and eliminate the tax on everything?

For this we should condemn ourselves to a progressive income tax system
FAQ #48

Is the Fairtax progressive?

Do the rich pay more and the poor pay less as a percentage of their spending? Absolutely, as you can see in Figure 6 below – where the graph shows annual expenditures for a family of four and the corresponding FairTax effective tax rates. The poor actually pay less than zero-percent retail sales tax on their spending. Much like with the earned income tax credit of today, the rebate may give them more money than they actually spend on retail taxes. Especially if they are frugal and buy mostly used products. On the other hand, the wealthy approach a maximum of 23-percent retail sales tax on their spending.
So I guess socialism is OK as long as you beleive you're getting your share...or more
275 posted on 05/17/2006 8:03:15 AM PDT by lewislynn (Fairtax = lies, hope, wishful thinking, conjecture and lack of logic)
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To: lewislynn
Naaaah.. Can't be.
Just like all those big bad VAT taxes in Europe never started out as simple sales taxes...
Trust the Klu Tax Klan - they know what's good for you.
276 posted on 05/17/2006 8:21:12 AM PDT by xcamel (Press to Test, Release to Detonate)
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To: lewislynn

Ah, but Looey - it's not "socialism" or anything like it. Nor is it an entitlement but a refund of part of your taxes paid so it certainly is nothing like "your welfare check".

And so you miss the obvious point that to increase the prebate the FairTax rate must be raised ... and that means raising it for everyone. Your GAGing must have blinded you to the truth.


278 posted on 05/17/2006 8:42:58 AM PDT by pigdog
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To: lewislynn
Hmmmm... you think the prebate is worse than the "entitlements" doled by our current system? You'd be wrong.

So many people have a negative income tax rate. The vast majority of those same people would have a positive nrst rate.

Yes, part of the reason is that it's easier to cheat the income tax by underreporting income than it is to evade sales tax.

Look at this. It shows that even those who report FAR less than the poverty level actually spend up to the poverty level. That means they're cheating the income tax to get "welfare" in the form of tax refunds/credits by underreporting income. It also shows that those same cheaters would not gain from the rebate - they spend up to the poverty level.

I don't know that there is a single group in the data that will gan from the rebate.

The group reporting 0- 5k in income spends over 20k.
The group reporting 5-10k in income spends over 16k.
The group reporting 10-15k in income spends over 20k.
The group reporting 15-20k in income spends over 25k.
The group reporting 20-30k in income spends over 28k.

All those people you think will have a negative sales tax rate don't exist.

285 posted on 05/17/2006 6:46:45 PM PDT by Principled
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