To: groanup
I did. You wrote that the FairTax is not tied to the elimination of the income tax. It most certainly IS tied to it.
No, it is not. There is no bond there. There is no obligation to repeal the 16th in the current legislation. There is a suggestion, maybe, but no obligation.
The taxation of qualified plan withdrawals is NEVER as a capital gain. It is ALWAYS taxed at the ordinary income tax rate. That is basic. You should know that.
True, that. For qualified plans the interest is taxed as income and is usually expected to be withdrawn at a lower rate than earnings, enjoying a lower tax rate under the current system.
The 15% would be for investments outside of retirement plans.
Sorry for my confusion. ;-)
That and the rest of your paragraph don't add up to 20% sales tax.
I didn't say it was a sales tax. I said that my local and state tax burden approaches 20%.
8.25 sales tax, 7-8 state income tax, 2.5 property tax, 2% misc which, at the very low end, add up to 19.75 (8.25+7+2.5+2) Real results are likely much higher.
And now you're telling me that what I save after all of that will again be taxed at 30% plus state and local burdens when I buy something after FT is implemented? Ain't gonna happen.
That is simply wrong...
Yeah, I've read the studies and the posts here. I agree that prices may fall somewhat and that most companies might let the employee keep their share of the tax burden, but the end result isn't going to be "purchasing power neutral" for the consumer.
Even if it was there are still losses incurred on any and all previously taxed savings.
And that's all before the government starts "fixing" the Fair Tax like they did the income tax.
The advocate's predictions are pie in the sky, at best.
51 posted on
02/05/2008 12:32:40 PM PST by
Filo
(Darwin was right!)
To: Filo
As I said the purchasing power of retirees who were dumb enough to only save after tax dollars is going to be hurt. They didn’t violate any rules and the bill should address that.
52 posted on
02/05/2008 12:48:13 PM PST by
groanup
(Don't let the bastards get you down.)
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