They say the fair tax percentage can’t be changed.I'm not new to the Fairtax as Hostage is. I've been posting information that Fairtaxers like Hostage don't want you to know and in fact will lie through their teeth about since 1998.
The fact is regarding the rate(s), after the first year of implentation the Fairtax as it is written today allows unelected bureaucrats at Social Security to determine the Fairtax rate every year without a vote or oversight from any elected officials.
lewislynn is an anti-FairTax troll who disrupts every FairTax discussion on freerepublic.com.
He fails to understand that determining a rate and voting on a rate are two different activities.
For example, DHHS and the Census Bureau ‘determine’ the federal poverty line and poverty rate. These are determined by well worn formulae that have been means tested and are considered reliable estimates that have been used for decades. The estimates and determination are used by various branches and agencies of government including Congress for crafting legislation to be voted on.
What the FairTax is saying in Section 904 is the the Social Security Administration will ‘determine’ meaning calculate the rate for Social Security benefits and medicare services. The resultant estimates are then used by Congress when voting on a NRST rate every year.
The FairTax fully intends to preserve Social Security and Medicare because people have paid into these trusts and insurance programs and the government needs to keep their promises to those that have paid in.
Social Security and Medicare reform can still occur but when the FairTax is enacted it will stand alone and not attempt to change all of government except in the way taxes are levied, collected and enforced.
Of course as the FairTax is transparent to everyone, it will make more consumers aware of the cost of government in the everyday things they buy. So it will wake up the electorate to the cost of government and this will foment spending reforms.
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H.R.25
Fair Tax Act of 2013 (Introduced in House - IH)
`SEC. 904. TRUST FUND REVENUE.
`(a) Secretary To Make Allocation of Sales Tax Revenue- The Secretary shall allocate the revenue received by virtue of the tax imposed by section 101 in accordance with this section. The revenue shall be allocated among—
`(1) the general revenue,
`(2) the old-age and survivors insurance trust fund,
`(3) the disability insurance trust fund,
`(4) the hospital insurance trust fund, and
`(5) the Federal supplementary medical insurance trust fund.
`(b) General Rule-
`(1) GENERAL REVENUE- The proportion of total revenue allocated to the general revenue shall be the same proportion as the rate in section 101(b)(4) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)).
`(2) The amount of revenue allocated to the old-age and survivors insurance and disability insurance trust funds shall be the same proportion as the old-age, survivors and disability insurance rate (as defined in subsection (d)) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)).
`(3) The amount of revenue allocated to the hospital insurance and Federal supplementary medical insurance trust funds shall be the same proportion as the hospital insurance rate (as defined in subsection (e)) bears to the combined Federal tax rate percentage (as defined in section 101(b)(3)).
`(c) Calendar Year 2015- Notwithstanding subsection (b), the revenue allocation pursuant to subsection (a) for calendar year 2015 shall be as follows:
`(1) 64.83 percent of total revenue to general revenue,
`(2) 27.43 percent of total revenue to the old-age and survivors insurance and disability insurance trust funds, and
`(3) 7.74 percent of total revenue to the hospital insurance and Federal supplementary medical insurance trust funds.
`(d) Old-Age, Survivors and Disability Insurance Rate- The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.
`(e) Hospital Insurance Rate- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.