“Your social security wages will continue to be reported to the social security administration just as they are now.”
But that has little connection to how much FairTaxable spending you do. It is especially bad for people whose income is mainly from tips like waiters, bartenders, etc. HR25 has a specific limit of $5,000 of tip income that can “count” towards social security benefit calculations. So bartenders I know who make $40K/yr in tips and spend $40K/yr and pay the FairTax on that amount will only get SS benefits as if they earned $5K/yr. On the other side, you have people who earn and FairTaxable-spend barely at the poverty level, so the ‘prebate’ completely refunds their FairTaxes paid — yet they still get SS credit as though they paid into it. A family of four could have an income of $50K/yr, use half for used vehicles/houses/education/savings, and pay NOTHING into SS/M because their FairTax was all refunded via ‘prebate’ for the $25K they actually spent on taxable purchases. Under the current system, the SS/M program would have received $7,650 from them and under the FairTax SS/M gets nothing from that family. This imbalance must be made up somewhere else, namely by collecting FairTax on all the spending of high earners who would today stop contributing after $106K/yr wages.
“Ensuring Funding for Social Security and Medicare” is a euphemism for “Foisting the Costs of Social Security and Medicare Entirely onto the Wealthy While Turning Lower Income Workers into SS/M Freeloaders”.
Thanks! Finally someone who “gets it.”
We are not all fools.
Your little treatise fails to mention the fact that we will also be collecting taxes from pimps, whores, drug dealers, numbers runners, and all manner of other criminals, as well as the truly rich who take in all kinds of money that does not meet the definition of “income” in the current tax code when they spend their money doesn’t it?