Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: FITZ
I have kids but I'm a ways above the poverty level. It seems that I would pay several times what someone making the same money as I would pay if they had no kids and instead were saving up all their money.

You, not having kids, would not have to buy necessities for them, so you don't get prefunded on those necessities. And saving money is not taxed under the nrst, so if someone saves money, it is not taxed. Every individual has that opportunity. Perhaps I misunderstand your post?

If my kids then have to pay into a Social Security system that benefits them (the other family's kids), then I'd be against it.

This is exactly the situation we have now under the income tax... our kids are forced to pay into the SS system to pay benefits to others. Since this is exactly what we have now, are you also against the existing income/payroll tax?

54 posted on 02/03/2002 9:25:58 AM PST by Principled
[ Post Reply | Private Reply | To 24 | View Replies ]


To: Principled; FITZ
CHIEF Negotiator came up with the last accurate fix on the FCA a few months ago. Here's what he had to say about it:

 

How will the Family Consumption Allowance [FCA] work?

All legal residents will receive a FCA equivalent to the FairTax paid on essential goods and services. The FCA will be paid in advance, in equal installments each month. The size of the monthly FCA will be determined by the government's Poverty Level for a particular family size, multiplied by the tax rate.

Every year, the Department of Health and Human Services [HHS] determine the "poverty level" for each family size.

The 2001 "FairTax" Family Consumption Allowance Figures

Family Size

HHS Poverty Level

Annual FCA

Monthly FCA

One

$8,590

$1,976

$165

Two

$17,180

$3,951

$329

Three

$20,200

$4,646

$387

Four

$23,220

$5,341

$445

Five

$26,240

$6,035

$503

Six

$29,260

$6,730

$561

Seven

$32,280

$7,424

$619

Eight

$35,300

$8,119

$677

1) Federal Register: February 16, 2001, Pages 10695-10697).

[ The monthly FCA for each adult is .23 * (HSS poverty level for a single person)/12 to assure no marriage penalty due to the manner in which the poverty level is dependant on family size. The monthly FCA for each child is .23 * (the incremental increase of HSS poverty level for a family with one child over no child) ] A. Geezer

A family of four, for example, could spend $23,220 per year free of tax because they will have received over the course of the year rebates totaling $5,341. $5,341 is the amount of sales tax paid on $23,220 in expenditures. A family spending double the "poverty level" or $46,440 per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.

The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.

H.R.2525 "The FairTax Act

Not only does every family receive a FCA based on family size, not income, but they will also receive 100% of their paycheck:

Fedup Smith makes $39K per year...once the FairTax is the law of the land he will receive an instant increase in pay of $200.00 per week. Since he has a family of four, he will receive a FCA of $445 per month, for a total of $1,305.00 additional income per month that he can do with as he sees fit

61 posted on 02/03/2002 9:59:12 AM PST by ancient_geezer
[ Post Reply | Private Reply | To 54 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson