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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:
Then why not fix the real problem instead of pushing the FT which only gives them more reasons to mess with the economy?
One would think that if the FairTax were to bring all the benefits its supporters claim, the retail sales groups would lead the movement.
They won't be looking for work, they just get a new job title.
Again, why would big retail oppose a bill that is supposed to bring them so many benefits? Good grief, they even get paid to collect and remit the tax.
“Q1: If the FairTax has ‘zero chance’ that congress would ever enact it, why do you anti-FairTaxers expend so much energy fighting it?”
Good luck getting an answer to that!
The SQLs say one thing and contradict themselves with their actions. So which should we believe, their words or their actions?
“Imagine the FairTax possibilities for a business like this
http://www.dinnersready.com/privateparties.aspx
Call the business a school, food becomes educational supplies, and voila, meal preparation is convenient, trouble and tax free.”
Oh yes, that would be real hard to crack down on. There are some real concerns about compliance and I think the FT would present a new set of enforcement challenges, but this is one of the weaker examples I have seen.
However, the two biggest laughers are still:
1. They’ll be smuggling real estate in across the borders!
2. Shopping centers will go dark while everyone is buying all their “stuff” off the back of semis parked in parking lots.
Yours has a way to go to rival those two IMHO.
Is FICA withholding 7.65% or 8.3%?There you go showing your math ignorance again.
Does the word "withholding" have any meaning to you?
How is it you can "withhold" 7.65% or 8.3% and have them be the same amount Einstien?
Both the employer and employee halves total 15.3%...The employer half of FICA is exclusive, is the employer half 7.65% or 8.3%?
Get it?
So thats a No?Which part of "no" did you not understand?
Tramonto, you are missing his whole point. Sales tax as we normally see it is expressed as ADDED to the price. So comparing it to INCOME tax is comparing apples to ornages and is also why it seems like you are deceptlively trying to tell us the rate is only 23% when anyone who looks at $1 item selling for $1.30 immediately thinks.
Why do you insist on calling it 23%?
I guess you're wrong about that. I had thought that your first choice was lying and peswtering people -- but I see that was only half of it -- you combined that with whining to Jim Robinson and screaming for Mods to defend you from the consequences of your running off your nasty, vicious mouth.
You started the flame war with me a long time ago. I told you to get off my back right in the beginning; but you kept at it, so don't cry about it now, when I give some of your slop bucket crap right back to you, you sniveling sissie.
I think it has some real possibilities. Back in the days when I was putting myself through school making jewelry, I needed a resale number to avoid paying the sales tax. Under the FairTax, all I'd need is a student ID.
You should start assiciating with a better class of people.
(BTW, they think its a good idea - at 10%. When I tell them its 30% on everything, they just laugh.)
You should stop lying to them and tell them the trut, the WHOLE truth, and NOTHING BUT the truth.
It really does help.
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