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To: Paul C. Jesup; ancient_geezer
AG will agree with me on this. We've been on the NRST threads for years, and believe me, I know the bill (unless it's been seriously revised for 2005, which I haven't heard of).

All retail goods and services are taxed. Period. The FCA (Family Consumption Allowance), working like the income tax's personale xemption and standard deduction, provides a "rebate" of taxes paid up to poverty-line spending. Every single legal resident is eligible for the FCA. By calculating the effective tax rate, based on the marginal rate paid minus the FCA allowance, what you get is that for people whose spending is at that low, fixed-income level effectively pay no tax, even though they have the same exact marginal rate as everyone else.

In short, you spend up to the poverty line, your effective tax rate is 0%. At twice the poverty line, it's 1/2 of the NRST rate. At ten times the povery line, it's 9/10 of the NRST rate. And so on.

51 posted on 01/31/2005 7:37:44 AM PST by kevkrom (If people are free to do as they wish, they are almost certain not to do as Utopian planners wish)
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To: kevkrom

Is the NRST as it is plan collected by the States and given to the Federal government, or collected by Federal government itself?


267 posted on 01/31/2005 9:00:25 AM PST by Paul C. Jesup
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