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To: K-oneTexas
>>>Under the FairTax everyone will pay their portion, period. Will it be an increase, yes. One they should have been helping with all along paying for the running of their government

So you are confirming my point that this will raise taxes on some of those households in the middle class that are currently not paying income taxes. Again, I think that is a hard sell for Republicans to make even if it is necessary.
33 posted on 04/23/2010 8:50:37 AM PDT by NC28203
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To: NC28203

It will raise on those not paying income tax before. If they worked they got the tax taken out of their paycheck and then they got it back.

The same happens with the prebate. What is the difference. Net sum equals zero.

How does it raise taxes on the middle class when they will no longer have payroll taxes taken out of their paycheck AND they too get the prebate.

Your arguing a non-happening.

It is not a hard sell if it was explained to the people. It’s a hard sell for those uninterested in learning. It’s a hard sell because it can be demigoged so easily by those who think they have a bargain in the current tax code.

You make it sound as though there is an increase in taxes being paid. There is not.

An example for us to look at (assume single no state withholding):
You earn $2,000.00 per week ...
Federal Withholding - $ 408.33
Social Security - $ 124.00
Medicare - $ 29.00
Net Pay - $1,438.67

1st - you keep the $553.33 in payroll taxes per week. ($28,877.16 annual savings of payroll taxes - $553.33 times 52 weeks)
2nd - Prebate of (2009) $208/mo or $2,491/yr. (see http://www.fairtax.org/site/PageServer?pagename=about_faq_answers)

The prebate covers your first $208 per moth in taxes paid out. Buy more it is not covered for anyone.

You have over $31,000 per year which is spendable that you do not have under the current income tax code.

It lowers taxes (payroll) and reimburses the tax (to the poverty level) ... no real increase possibly a wash.

I think you are afraid that any change will raise taxes. As I pointed out it is revenue neutral. It would even out across the household levels, however based upon what/how much they are buying their tax payments might go up.


34 posted on 04/23/2010 9:21:58 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))
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