Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: tumblindice
And he's another one of the people who'd be better off by having greater purchasing power under the FairTax ... and that can be demonstrated with concrete numbers.

Is he married, have any kids, and what CBO quintile does his gross income (includes all forms of income) fall into:

Q1 = $14,800
Q2 = $34,100
Q3 = $51,900
Q4 = $77,300
Q5 = $184,500

With this approximate information we can give you a very close assessment of how his purchasing power will increase or decrease under the FairTax compared to the income tax - and it's almost always an increase. This allows each person to get a good reading of the effect of the FairTax on a particular income situation. The quintiles shown are from the COB effective tax rate structure for 2003 - the most current one.

293 posted on 07/27/2006 1:59:58 PM PDT by pigdog
[ Post Reply | Private Reply | To 267 | View Replies ]


To: pigdog; tumblindice
Under our income tax, employers can save a lot using illegals and illegals can earn enough to live.

Under the income tax:
an illegal earning 34,100 today keeps 34,100.
the illegal has no federal tax withheld - he's paid cash.
The illegal costs the employer 34,100 - the employer does not remit the 2608.75 in employer fica either).

Under the nrst:
an illegal earning 34,800 would only keep 26,800.
the illegal would provide $8000 in federal taxes. Would he work for $8,000 less?

Maybe. Maybe he'd ask for more. Maybe the employer would be just as well hiring a legal resident?

Since he's illegal, he doesn't get the monthly tax rebate to offset tax on necessities, so he bears a greater tax burden than legal residents.

A legal resident OTOH would fare much better. The same 34,100 (assuming a family of 4) would keep 32,329 as this legal family's rebate offsets much of their tax.

319 posted on 07/27/2006 6:17:07 PM PDT by Principled
[ Post Reply | Private Reply | To 293 | View Replies ]

To: pigdog

Do you have any data to work from to show how the FairTax benefits taxpayers as requested in #293???


322 posted on 07/27/2006 6:29:52 PM PDT by pigdog
[ Post Reply | Private Reply | To 293 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson