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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:
SO EXACTLY WHAT IS Earned Income Tax Credit NOW??????
And how does your comment relate to the trashing of the 4 and 5th amendments which occurs when you are required to set out your income status and swear it's veracity under penalty of perjury? Or the use of the tax system to reward lobbying and punish political enemies?
your comment is entirely ridiculous and could be compared as equivalent to a comment made by a yapping little fool. Or perhaps it is disingenuous and you might be a Communist dupe...
Then the IRS rate calculated the same way is also 30% of what's left after taxes."30% of what's left after taxes"?...Does that really make any sense to you?...Really?
Then where will the additional monthly entitlement payments come from? We're not getting them now.
It's not a universal entitlement.
More welfare, more poverty.
The 30% rate (as you insist) is adequate to cover the cost of the prebate.And the 23% embedded taxes, and the personal income tax, and the personal payroll tax, not to mention the death tax, the gift tax etc.?
So the Fair tax would be higher than the income tax, but will involve more welfare payments to compensate.
Less taxation by higher taxation, less socialism by more socialism.
Orwellian.
Why don't you humor me and ask an honest question without false planted assumptions in it?
Not yet...Oh yes it is. It is if you don't declare it as income.
And your reference for this allegation is:HR25 The Fairtax Act. Education expenses and used products are the only exemptions from the tax....Read it sometime.
Enroll in our one hour driving safety course. The price of instruction includes a new car!
Its just an apples to apples comparison for a '30%' Fair Tax as opposed to the 23% version.
If the Fair Tax ever becomes law, it would be good to report it using the traditional sales tax method because it will make people want to pay less. For comparative purposes though, the 23% version is more accurate.
believe the term is "revenue neutral", not "bring in the same amount of money". The FairTax, AFTER paying the prebate, results in a net tax to the Feds equal to what is now collected.IOW, more has to be collected to pay the (GAG!) "prebate" than is collected now...I know that must be true because AFFT has a graph that shows more money paid out for negative taxes under the Fairtax than even the EITC.
The false assumption being that you spend all your money on taxable goods and services? Ok, but you have to help me formulate the question then. What percentage of you income do you spend on items that would be taxable under the Fair Tax?
So the fake 23% rate is doubly false.
You "fair" taxers are just full of entitlement demands.
There's the rub. A Republican won't always be in charge of the FT number. Or, if current events serve notice, a Conservative Republican won't alway be in control of that number. Also, if the 16th Amendment isn't repealed, we could end up with both an Income Tax and a Sales Tax. The Dems would cream over that.
Its just an apples to apples comparisonNo it isn't. It isn't anything and doesn't compare to anything.
If the Fair Tax ever becomes law, it would be good to report it using the traditional sales tax method because it will make people want to pay less.Oh right, but first we have to trick them, even lie to them, use fraudulent math, then, when after it passes, we can be honest about it...
Got it.
Ok, so you won’t answer a simple math question because it uses the assumption that 100% of income is spent on taxable items. Since you wouldn’t spend all your income on taxable goods and services you think the question is unfair. LOL
Are you just joking around? Why should anyone take anything you write seriously when you make such absurd excuses to not answer a simple question?
BTW, which candidate did/do you support?
Its not a matter of tricking them, its a matter of making an accurate apples to apples comparison between a sales tax and an income tax.
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