FairTax cut for 2-parent families

WorldNetDaily.com ^ | January 19, 2008 | Howard and Raymond Richman

[Man50D]

During an election season, one of the first losers is the truth. The current misinformation campaign against the FairTax has been particularly virulent. Last month the FairTax was being panned by some columnists as a "crackpot scheme," even though it could be collected exactly the same way as its close cousin, the value-added tax, which is the most successful tax in the world. This month the FairTax is being vilified by various columnists as a tax increase for the middle class, even though it would provide a substantial tax cut for two-parent middle class families. Specifically, in a recent column, George Will asked, "Do you want a president (Mike Huckabee, proponent of a national sales tax of at least 30 percent) pledged to radically increase the proportion of federal taxes paid by the middle class?" Similarly, Time magazine's business and economics columnist Justin Fox wrote a blog piece entitled, "The FairTax and its big break for the $200,000-plus crowd."

The FairTax is a national sales tax that would replace the income taxes, the payroll taxes, and the gift and inheritance taxes. It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption. To help you pay the tax, you would get a prebate check or a debit card credit at the beginning of each month equivalent to the amount you would pay when buying necessities. In 2007, that amount would have been based upon $10,210 spending per adult and $3,480 spending per child.

[baybabe]

The VATs are collected at the point of sale as a percentage of the transaction with any difference being that the VATs will typically tax business to business purchases while the FairTax does not. That makes the VATs a cascading tax that boosts prices which the FairTax does not do.

The method of calculation is simple for either tax but the FairTax is superior since it doesn’t enforce the bureaucratic mess (and evasion opportunity) of applying to the government to plead your case for a refund of overpaid amounts. Both are vastly easier to calculate and collect than an income tax system.

[Eagle Eye]

LOL...thanks but as a civilian my service to the military doesn’t count since we was mercenaries profiting obscenely from the war machine yada yada yada....

Thanks, you know I was kidding.

[Mojave]

I get a refund of a portion of the taxes I paid

Even if you didn't pay 'em!

[baybabe]

Ugh yourself. Please lear whereof you speak. The tax is not 30% but 23% tax inclusive as a comparative figure to your rate under the income tax.

You seem to fall for the pretense that it is 30% and paid on everything. Neither lie promulgated by opponents is true and in fact your effective tax rate under the FairTax will almost always be lower than it is under the income tax.

[Eagle Eye]

Doesn’t take any effort at all for a family of five to spend $3000 each month. Do the math. That family paid the taxes. The prebate is their own money.

[Mojave]

The tax is not 30% but 23% tax inclusive

Why aren't any of the sales taxes in the country "tax inclusive"?

[groanup]

What is the advantage of being a tax haven?

LOL!

Jobs, growth, industry, the usual stuff.

[baybabe]

Nonsense - and I believe you're one of those who know better but choose to pretend otherwise.

Didn't your grandma tell you not to tell fibs???

[Always Right]

It is a 30% sales tax no matter how you spin it.

[Mojave]

Doesn’t take any effort at all for a family of five to spend $3000 each month.

Or an FTer living in his Mom's garage not to.

[Eagle Eye]

Funny thing is that the same characters that oppose serious tax reform also oppose reforming the war on drugs and also seem to be for gun control.

Ok not exactly all but you get my drift.

[baybabe]

Much, much lower of course.

And in any giver year the IRS budget is about $12 billion. And the amount of tax the IRS admits it does not obtain (but should) is something like 27% of all income tax revenue. A horribly expensive and inefficient system.

[Mojave]

Or even an FTer living in his Mom’s garage smoking pot not to.

[Paladin2]

"What is the advantage of being a tax haven?"

Also hot money and crooks.

Low corp taxes are a good thing, especially as Europe seems to be reducing theirs. It's a good thing to be competitive. Low tax rates help too. Corp taxes can be reduced without going to THE FT(30% just for the Feds is just a little too high).

[savedbygrace]

it is ok to give labels but not ok when getting one?

I didn't get one. You tried, but because you are 100% wrong, the label didn't stick. You don't know me and your B/W thinking got it wrong.

You have no clue.

[Eagle Eye]

Are you really so afraid that a few losers in garages (who will eventually spend their money and pay the taxes) are so important that you’d oppose serious tax reform and getting rid of the IRS?

Yes, you are.

Just like a child worried that someone else’s cake has microscopically more frosting instead of just enjoying what is on your plate.

[Eagle Eye]

And you have no humor!

But wait, isn’t that what you accused some others of, having no humor?

[groanup]

Corp taxes can be reduced without going to THE FT(30% just for the Feds is just a little too high).

You're right. Corporate and individual income taxes should be zero. Investment income, capital gains income, labor income and earnings income taxes should all be zero.

Replaced with a tax on consumption.

[baybabe]

But keep in mind - it's not comparatively a "30%" tax and it's not on every purchase. To compare to the income tax you need to use the 23% tax inclusive rate since the income tax is tax inclusive also. If the IT were stated in tax exclusive rates (as the FT opponents try to do with the FT) you'de be shocked at the rate.

There are many, many things not taxed under the FairTax - in effect, deductable. This helps to greatly lower your effective tax rate.

Among the things not taxed under the FairTax are:

1) annual amount paid out for loan payments, including both principal and interest. (include existing mortgage, auto, and all other loan payments.)

2) annual tuition payments made for education for any age, any level. Include annual student loan payments

3) annual amount of all funds deposited to any savings account or retirement account through a government plan, through your employer, or privately, and all funds used to purchase any stocks, bonds, business, or investment vehicle of any kind.

4) annual amount of all funds you have donated to any Church, profit or non profit charity or organization, or given to any individual through a gift, inheritance, donation, or court order, including child support.

5) estimated annual amount of all taxes paid to any State, County, City, Municipal, Township, and other local governments. Include state income and sales taxes, property taxes, school district taxes, deed transfer taxes, occupational taxes. Include both State and Local taxes paid throughout the year, through payroll deductions and estimate those paid on your own, such as sales taxes.

6) annual estimate of funds spent on purchases of used items (jewelry, clothes, used real estate, used cars, used furniture, antiques, etc.).

7) donations as a political contribution to an individual or political party

[Mojave]

Are you really so afraid that a few losers in garages

The FT welfare scheme would be the largest entitlement program in history.