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To: Hostage
Who Filo can live off of $391 a month? Who?
Where is it written it's not an entitlement if you can't live off of it.

Every example given from your own Fairtax calculator shows more "spendable income" than gross income earned...What do you call that exactly? And where exactly does that extra "spendable income" come from? The Obama money tree?

How does a rebate increase your spendale gross without taking it from someone else? Answer that one Hostage.

275 posted on 05/13/2009 9:01:59 AM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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To: lewislynn

“And where exactly does that extra “spendable income” come from?”

The extra income comes from the FairTax rebate! It is a refund of FairTax National Retail Sales Taxes (NRST) paid in spending up to the poverty line.

Where does it come from? Where did the Bush Tax rebates of last year come from? From tax revenues! Of course!

And so it is that a person’s FairTax rebate will also come from tax revenues! Eureka!

And most qualified persons and families will be paying much more in FairTax NRST than they take in from rebate checks.

As for your last question, it’s already answered in the above, it comes from tax revenues.

For example, using the example previously of a married couple, two children, employed and filing jointly, earning a gross of $40,000, no deductions, paying $1,510 in federal income tax and $3,060 in payroll taxes and receiving a FairTax family rebate of $6,297. This family will pay 23% NRST or $10,648.31 on their ‘Net Spendable’ of $46,297.

On a monthly basis, the federal government will take in 1/12th of the $10,648.31 in NRST or $887.36 yet only cut a rebate check to this family for 1/12th of $6,297 or $525.

For the one-time case calculation of the FIRST MONTH of FairTax operation, the federal government can either pay up front for the month ahead or pay at the end of the first month.

If the rebate is paid up front, then the federal government can run a short-term deficit of $525 to this family, short-term because the federal government will be repaid this deficit amount within two months after this family is paying the NRST.

If the federal government pays at the end of the month, then this family example has a ‘Net Spendable’ of about 1/12th of $40,000 per year or $3,333 for the first month only. Spending $3,333 on retail will generate 23% NRST revenue of $766.67 per month from which the government can rebate $525 for the next month of spending.

And the government revenues will grow because the tax base of spending is much larger than the tax base of wage earner income. And that’s not even accounting for what prominent economists have agreed that the GDP will be boosted by 10% under the FairTax!


278 posted on 05/13/2009 10:55:34 AM PDT by Hostage
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