Posted on 01/20/2008 6:29:07 AM PST by 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.
(Excerpt) Read more at worldnetdaily.com ...
In fact, most people understand it quite readily when I've explained it in townhall meetings, etc. The concept is already familiar in the form of sales tax.So you tell them, in the form of sales tax, the rate is 30% not 23%...good for you.
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.That's just an outright stupid statement.
I could say all you fairtaxers are nothing but scientologists shilling for AFFT...makes as much sense and at least there's a known connection.
1) annual amount paid out for loan payments, including both principal and interest. (include existing mortgage, auto, and all other loan payments.)Interest is taxable under the Fairtax (including on any existing loans)...Follow your own advise, read the bill. It's a simple read.
There is no progressivity to it anyway.Don't take our word for it;
FAQ #49
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....
There are some businesses where it is customary to quote prices on a tax inclusive basis presently.That would be illegal for a business to do under the Fairtax...You really do need to be better informed. The bill # is HR25.
It's good to see that one like you can actually learn (finally).You think you're very clever, you always have.
The prebate is estimated (just like the imputed income the IRS calculates for some - and then taxes them right or wrongly). As others have pointed out, to be truly fair in a Marxist, progressive fashion, the prebate would have to take into consideration the cost of living locally. The prebate in and of itself would create a bureauracy similar in scope to the IRS.
Another poster from the Ready!, Fire!, Aim! school of discourse.
Well, this is certainly encouraging. Where's the freaking science?
I believe that it has already been demonstrated that “she” (no one knows who or what you are on the ‘net) may be much less clever than she believes.
Do you have ANY comprehension of :
Marginal tax rate?
Average tax rate?
How to interpret a plot of average tax rate vs. income, spending, AT investments in hand to be spent later?
Fortunately, the gov't (the IRS is just a witless tool of Congress) doesn't impute work you do for yourself as income and send you the bill.
From what I've seen on the 'net in the last few months, there's alot of that going on in Hollywood, CA. Perhaps the trend is spreading to other parts of the state?
Since I'm so math challenged (if you only knew), please give us some quantitive estimate of how much we can expect to see from this (being a skibum and all) on an individual basis - a range.
baybabe has been shown to be citation challenged.
both can easily be marxist.
(event with your confusion as to years and marx’s life)
this is not a either or situation. BOTH are bad.
grow up.
Not one person has defended or said the current system is good. This fair tax scam is insanely wrong.
The proposal is a falure with the flaws disected and exosing the plan as seriously wanting.
Dump HR 25 and start again.
The alegation of 20 million being spent to examine this has been shown to be a sham.
The organizations headquarters is a hole in the wall office in houston texas.
The redistribution embeded in HR 25 with the rebate/prebate is an entitlement via wealth redistribution.
babette, you do seem to be conceptually challenged. I still think you are a FT bot. Especially if you don’t address this issue using, say, some math, equations, logic, etc.
Please describe and estimate the number of folks who won't benefit. Use math.
It says:
Many FairTax supporters are wildly enthusiastic about the plan, and some have certainly made fantastic claims in its name that have no economic merit.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.