Replies

Now, in my real life, I have already paid tons of income taxes on my considerable post-tax savings and you now want to change the heavy tax burden in the coming years when I retire from the earners to the spender. So, I will have carried the heavy tax burden when I was an employed earner and then I will carry the high tax burden AGAIN as an unemployed retiree when I spend my ALREADY TAXED savings in retirement.........Polybius

************

This line of attack has already been debunked.

Really?!?

You mean I haven't paid any income taxes all these years and that the Fair Tax will not tax what I buy?

Any time you take your ‘savings’ (if indeed you really have any) out to purchase something, there are already embedded taxes in the product you are buying. All the FairTax does is bring it out into the open.

WTF does that have to do with the $150,000 in Federal income taxes I paid this past year in order to be allowed to keep the AFTER-TAX dollars I then put in savings?

You seem to be surprised that anybody actually has any savings. If that is the case and you live paycheck to paycheck, then then you do not really have a dog in the fight of the Fair Tax double taxation.

You’re not going to convince anyone that your savings have already ‘paid its tax’.

Are you an adult or a child whose only source of income is the untaxed allowance that Mommy gives you?

In this past year, the price that Uncle Sam extracted from me to allow me to keep the dollars that I earned and later used to live, have fun and put away in my non-retirement portfolios was $151,000 (one hundred fifty one thousand) in Federal income taxes.

Yes, Junior, my savings have been taxed.

The interest on your savings is presently taxed. And every purchase you presently make has a federal tax in it. The only person you’re fooling with this angle is yourself.

So, let's take $1 million of my savings and, to keep it simple, put in in a 5% CD. That is a taxable income of $50,000.

What is the income tax on $50,000?

Is it worth figuring out?

But, to save that tax, you want to impose a 23% tax if I spent that $1 million of post tax dollars that has already been taxed at the top tax rate.

That comes out to an additional $230,000 tax on money that has already been taxed under the top income tax rate.

When you are not living paycheck to paycheck without any savings or living off the untaxed allowance that Mommy gives you, get back to us to discuss the tax rate that the money that we savers put into our portfolios is taxed at.

Are you an adult or a child whose only source of income is the untaxed allowance that Mommy gives you?

I am betting he is the latest in the line of paid for shills from the fairtax organization, who are paid to post here. I have asked him several times and he ignores the question.

You’ve hit on the biggest weakness of the FairTax. Try convincing the Boomers that the money they’ve saved, after a lifetime of having their income taxed, will now be taxed AGAIN as they spend it in retirement.