Once again, if you breath, you are "eligible" for the prebate which is calibrated SOLELY on the number of people in the household - and that is all you have to report.
The prebate goes to you whether you make 20K or 20 million. It's calibrated to cover the sales tax on amount of money spent for food, clothing, and other necessities up to a predetermined poverty level.
After that, how much one pays out in sales tax is pretty much up to them. You want a new yacht? Pay the tax. You want a secondhand boat/car/existent home = NO TAX. Repeat after me: NO TAX on any secondhand purchases.
The FAIR TAX is a consumption tax. The prebate ckeck will cover the taxes for necessities. Thereafter, it up the consumer what taxes they pay.
This means the millionaires will actually be paying their FAIR SHARE - no loopholes.
The illegals wont get the prebate check and will be paying the tax from dollar one - gotta love it. Ditto the drug trafficers etc.
Sound pretty dam* FAIR to me.
And the freedom of no KGB/IRS - how can anyone not want that?
The prebate goes to you whether you make 20K or 20 million. It's calibrated to cover the sales tax on amount of money spent for food, clothing, and other necessities up to a predetermined poverty level.
Yeah, and if you make over that predetermined poverty level, you shouldn't get it, based on a sliding scale which claws a percentage of it back the more you make beyond that poverty point until your prebate=0
It simply doesn't make sense to send out a prebate check to every single American, if they are making 100k+ a year.
If that is the case, then that is a big waste of money, needless government workers and offices.
I understand what you mean though. It is someones idea of trying to simplify a problem concerning low income earners. It is just as simple, (=spending less tax dollars) to have people send in for a rebate or "prebate adjustment" each year , a single piece of paper, rather than recycling money like we do now with tax returns. That way only those that need it get it, and it maximizes revenue, wastes less time and paper, size of the government office, because it only serves a part of the population rather than all of it.
This is a part of the deal that brings up lots of questions for me. If you pay no tax on anything secondhand, then won't this at least for 5 or so years harm our economy? If no one is buying new houses, cars, home appliances because they can get recent models at a much cheaper price then won't a lot of employees of construction firms, manufacturers and retail outlets be layed off and many existing small businesses go out of business?
Someone told me that construction companies would turn to their business to remodeling old homes, but if they built any new rooms or additions to a house wouldn't these have to have some kind of tax put on them? I realize that you will pay tax on any new materials added to the house, but when you buy a new house you aren't just paying for the materials that were put in the house, you are paying for the total value of the house and a new addition will increase the total value of a house.
Another thing that bothers me is the tax on services. If you have to pay tax on your doctor's visits, prescription medicine, and hospital operations then insurance companies will raise their premiums. You have to be living in lala land if you think doctors are going to suddenly lower their fees. The government will also have to pay the tax, so what they pay into medicare and medicaid will have to go up. If they exempt these things won't we lose a big chunk of money that has to be replaced somewhere else?
Another thing that bothers me is how much time will Congress spend fighting over and hashing this whole thing out. The ending bill will look nothing like the original proposal when they are through with it. I think with a war going on I’d rather not have Congress tied up in this and making a mess out of things that causes budget shortfalls when the welfare of our troops and security of our nation are at stake.
It’s all ass-backwards anyway. We need a President that is going to focus on cutting government spending, so the government needs less revenue from tax payers, period.