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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:
Well I’m not sold on it either yet but something has got to change. I can’t see much worse than the IRS.
I don't spend all of my income or all of my after tax savings on new retail items.
Wrong. The bottom line is that the 23% of embedded corporate taxes that is the inclusive rate becomes the 30% tax exclusive rate with The Fair TaxWhere does the personal income tax and the personal payroll tax the Fairtax replaces fit into your calculation?...not to mention the monthly government check ...I didn't see that part, I only saw the embedded tax part.
BTW, all businesses aren't corporations.
No one has trashed ANY of my arguments lest of all you as you have never MADE an actual argument.
Every word I said in my previous singular post to this thread is true and the Mods need to know it!
You ran to the mods begging them to silence arguments you have consistently proven incompetent to address.
First there is no "entitlement program" and secondly the money for the tax prebate comes form the exact same place as your standard deduction under the income tax does. Taxpayers!
Just raise it to 30 percent.
Nothing of the kind! I informed the mods of the abuse of the system by some and nothing more.
The President’s Advisory Panel for Federal Tax Reform cited the rebate as one of their chief concerns when analyzing their national sales tax, stating that it would be “the largest (entitlement program) in American history”, and contending that it would “make most American families dependent on monthly checks from the federal government”.
http://www.taxreformpanel.gov/final-report/TaxReform_Ch9.pdf
You just got spanked again.
If you spend all of your income on taxable items.....
Its a word problem similar to what high school students have to solve. It requires reading comprehension and the ablility to do simple math.
Why don’t you just try to answer the question?
I don't.
Math isn't your strong point, is it?Gee, I hope you aren't referring to this from your #73 as an example of your math strong point:
(See post 73)
In other words, for ever dollar spent, an additional 30 cents would be charged. That's 23%,not 30%.Next you'll try to tell us there's an exclusive rate on income.
If people won't go for the NRST as a means of structuring a system of taxation which will provision the government without ripping the bill of rights into little shreds, I guess we should just argue government operated tax systems have little legitimacy and argue for the banning of all taxation. Gov't should instead run on donations from folks who think we need an income tax or property tax .
Just so folks know what the alternatives are...this nonsensical trolling has got to stop. Go find something else to slip on instead, like a banana peel.
23% of the dollar, another 23% of the 23% of the dollar, another 23% of the 23% of the 23% of the dollar...
It’s easy!
If haven’t read this book then you can’t really say much about the fair tax.LOL! Oh, OK.
Yes, let's add a right to a monthly entitlement check to the Bill of Rights. Smaller government through socialism!
LAME
False premise.
Don’t they call those groups Circle Jerks?Bookmark for where the name calling begins.
The Presidents Tax reform panel did not evaluate the FairTax proposal at all! What they DID evaluate was an NRST of their own construction and YOU already know that as well!
Hundreds of thousands of FairTax supporters were deeply dismayed and angered to learn that the President's tax panel ignored millions of dollars worth of solid, independent research on the FairTax legislation, research completed by some of the nation’s top economists over the last decade. Despite access to the FairTax legislation and all of the research, the panel itself virtually overnight created an alternate and severely flawed national retail sales tax plan, which they then scored and condemned"
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