To: NC28203
While a plan may allow for a refund of a certain dollar amount to low income, I'm guessing it would not wipe it out completely for all households.
The prebate, under the FairTax (if that is what you are speaking about) is given to EVERY family on an amount up to the poverty level set by Congress.
Everyone pays "their fair share" (as you put it) because there are no exemptions and/or loopholes in the law to exempt anyone. Individuals pay the tax. Businesses pay the tax. Government entities pay the tax ... on all purchases. Tourists pay the tax ... on all purchases. EVERYONE PAYS - no one can get out of not paying. Plus, no one gets refunds.
Additionally, the 23% rate is replacing Income Tax, Social Security Taxes and Medicare Tax. Plus it repeals these taxes (a constitutional amendment is needed to get the 16th Amendment repealed) and thus does away with the current tax code. K Street is also out of business.
If it is the FairTax you are talking about. There are many plans out there and many have bills filed in the US Congress.
25 posted on
04/23/2010 7:40:21 AM PDT by
K-oneTexas
(I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
To: K-oneTexas
>>>EVERYONE PAYS - no one can get out of not paying.
Right. So you have a situation where many households go from paying no incomes taxes to paying tax in excess of a prebate. Thus, higher taxes on the middle class. Now again, everyone paying their fair share might be the correct goal, but that implies that some are not currently paying their fair share and would be required to pay more taxes. Since the poor are likely to be exempted prebate, credits, etc, it will be the middle class that will be paying more.
27 posted on
04/23/2010 7:48:37 AM PDT by
NC28203
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