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Locked on 02/18/2008 10:17:33 AM PST by Religion Moderator, reason:
Childish behavior |
Posted on 02/16/2008 3:30:21 PM PST by xcamel
One solution to the nation's long-term fiscal problems that has gained support in recent years is the idea of replacing all federal taxes with a 23 percent national retail sales tax called the FairTax. Unfortunately, the administrative problems inherent in this proposal make it impossible to take seriously, says Bruce Bartlett, former deputy assistant secretary for economic policy at the U.S. Treasury Department.
For example, under a FairTax scheme: A worker now netting $800 per week would immediately get a $200 raise and start taking home the full $1,000 gross wage that he is paid; instead of paying income and payroll taxes, workers would pay their taxes when they buy things.
The FairTax would impose a 23 percent tax on all goods and services (this is not really correct, but for now we'll accept it at face value for analytical purposes).
Whether he is better off or not depends on what his effective tax rate is: Assuming he spends all his income and no more than that, he will be no worse off if he now pays 23 percent of his income in taxes. That is, his effective tax rate is 23 percent; in this case, the FairTax is a wash, the worker is no better off or worse off in terms of taxes than he is now.
But what if the worker is now paying less than 23 percent of his income in federal taxes? In this case, he is clearly worse off, says Bartlett: The prices of the things he buys will rise by more than his income rises from the elimination of income and payroll taxes. Conversely, if one is wealthy and in a tax bracket above 23 percent, that person would be much better off. His income and payroll taxes would fall by much more than the prices of goods and services he consumes would rise.
Source: Bruce Bartlett, "Why the FairTax Won't Work," Tax Notes, December 24, 2007.
For text:
HAHAHAHAHA You wouldn’t know “a rational, thinking person” if one fell off a rood and landed on top of your head.
All local, state and federal governments put together need to provide is courts, a military , police , and border enforcement and a fence. At maximum that would be around a 5% sales tax and not the 50% of our income we are paying in in federal income tax, property tax, sales taxes, social security tax, Medicare tax,state income taxes, excise taxes, gasoline taxes etc.
No sales tax in American history has been "calculated" the FT way.
wrong..if milk costs $1 now, it will cost $1 under the fair tax, only the tax is included in the $1..Since we should assume the author of "the book" did the slightest bit of research and he should know, I can safely say the author is lying.that’s how I understand it..and I’ve read the book..can you show me where you learned it’s added on and from what source?
I have proof anyone (including Boortz) can find with a mouse click.
One word. Prebate.
Also, most naysayers do not realize that it is a constitutional replacement for the present income tax... it will never be an "extra" tax on a resurrected income tax.
A legitimate concern is expenditures from savings accounts where citizens have already paid income taxes to amass savings. However, I suspect this has been addressed and I am just not up-to-date on it.
I may never see it. But, I hope my grand-children live in a world without a politically manipulative income tax.
And, April 15th is really just "another day".
And yet FTers always demand that critics "read the bill".
Apparently that is all you have ever done is “read the book” - without any research into the bill itself. Swiss cheese should be so lucky to have as many holes..
23% is currently buried in the cost of the item..so removing it, and replacing it with the fair tax would result in the same $100, only the receipt would showI'm honestly not dogging you but some of you are so mislead by "the book" it's unbelievable.“purchase $77”
Tax $23Total $100
First of all the Fairtax replaces ALL federal income taxes and your payroll taxes.
Maybe you could explain how the 23% rate will replace the 23% embedded taxes AND your personal income tax AND your personal payroll tax And send you a government check every month ON REDUCED PRICES?
Yes. Of course. You are mixing apples and donkeys. I am for a flat tax.
we cannot and must not continue with the present system of taxation. This is a good start. Accept it and if it has some problem spots, fix them and get on with it.
Intersetingly enough, I understand the few countries which have adopted the Fair Tax are well pleased.
That's still a lie -- just like it was the first time it was posted by one of you twisters.
“For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase.”
1 dollar purchase, 30 cents tax.
Liar.
Don’t you dare say that the Emperor has no clothes!
Your unkind response has not gone unnoticed... I suspect you know more about the holes in Swiss cheese than you do about the Fair Tax since you offered no substantive response.
If you want to know the truth — for heaven’s sake don’t ask xcamel — about anything.
I’ve read Boortz’s book.
Personally, I prefer the Flat Tax.
The problem is Congress. The Flat Tax does *not* address the real problem.
I'd be interested to know which one of those lies do you believe that we believe -- and why do you think so?
That’s what the prebate is for.
Next question....
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