I can see you haven’t taken the time to do your homework before typing an opinion that shows precisely that you are ignorant of the facts.
Are you relying on others here to do your homework? Appears to be and so the question is why would anyone respond to your unfounded and misguided view on the FairTax Rebate? The answer is so that others that are reading will be properly informed.
The FairTax Rebate is the same for every American individual from a grand mother on Social Security to billionaire Warren Buffett.
The poverty level is calculated every year. It is about $10,294 for an individual and the FairTax Rebate sends a monthly check of 23% of that $10,294 divided by 12 or $196 a month.
The Rebate to an individual of $196 a month is to reimburse the recipient for taxes already paid in federal sales taxes at the cash register. The assumption is that nearly every qualified individual will spend at least $10,294 each year. Those that can live on less that $10,294 a year can make a few dollars off the rebate. How much? Does it matter? It’s nothing compared to the enormous benefits of the FairTax.
For example, Americans exports of goods and services overseas will not be taxed leading to an immediate reduction of an average 22% on the cost of those goods and services because there is no longer any federal tax burden on exports. This will lead to a bolus of competitiveness around the world for American made products and services and contribute greatly to US economic growth.
Are the economic growth benefits of the FairTax worth paying a few thousand bums an small net gain every month because they are getting a Rebate and spending under the poverty line? You bet it is worth it.
The FairTax is not perfect, no tax code will be perfect but the FairTax is far superior to any other tax code.
I’ve moved from a jurisdiction that charges income tax to a jurisdiction that doesn’t.
Costs are about 50 percent lower here. On everything. The prebate sounds like a good idea, but that’s money that has to be redistributed, which means you need a bureaucracy to administer.
Assuming I make less than the federal income tax threshold, and assuming I spend about 10 bucks a day, I would end up about 50 bucks/month ahead of the game. No income tax saves me about 150/month, and the ‘pre-bate’ would be about 50 bucks more.
The problem with the Fair tax is while I benefit I don’t want to be the beneficiary. I want a tax system that benefits those who make the most more than a tax system that rewards people for not doing much.
Sure I might gain 50 bucks/month more, but I don’t intend to stay at this level of income for much longer. I’d rather have a system that pays off for me down the road.