Posted on 04/18/2005 9:30:29 AM PDT by witchypooy
IT'S YOUR PAYCHECK - KEEP IT ALL FAIRTAX CALCULATOR HR25/S25
Now that April 15 is past, it's time to tally up the tax score. Go to the FairTax calculator, http://www.pafairtax.org/calc.php and using 2004 figures, figure out (anonymously) what you would have spent in 2004 in taxes if we had the FairTax, the simple, honest, and progressive national retail sales tax, instead of our current complex income tax/FICA tax system.
TOTAL INCOME TAX + TOTAL FICA = TOTAL FAIRTAX : For your household, please remember to make an honest and accurate comparison. FairTax will fund social security and medicare with 1/3 of all sales taxes collected, thus eliminating FICA withholding from your pay also. Therefore, to be an honest comparison, you MUST take your total 2004 income tax paid PLUS your total FICA withholding for the year for social security and medicare, and add them together. This becomes the accurate figure for current income/fica you would compare to the projected FairTax shown on the calculator. You can get the total FICA withheld for the year off your last pay stub, or just figure 7.65% of your yearly gross wages. If you are self-employed you will figure 15.3% for FICA.
We are only dealing with the 7.65% FICA you pay yourself here. Remember, your employer also pays 7.65% for you under today's system. In Business bookkeeping terms, this is actually YOUR money that your employer must spend for your benefit, and really should also be added to your overall Income Tax/FICA costs today. Under FairTax your employer will NOT be paying FICA on your behalf. This business expense is eliminated. This FairTax advantage means more money for businesses to use to either lower prices, or raise wages.
The rebate of taxes paid up to the poverty level of spending for your household, that will be provided to ALL Americans under FairTax, is calculated and shown in the FairTax calculator formula. The HHS poverty lever table is also there, for all situations. This rebate essentially gives every American tax free spending on the necessities of life.
noirs@pafairtax.org
I would like to see some language to protect retailers from the costs of collecting the taxes. Since so many sales are electronic these days, I really don't feel highly inclined to pay the fees on the portions that are going to the government.. My state already sticks me with that, and I'm sick of it.
Starting the very first day the law goes into effect, no qualification except a valid SSN and being 18 years or older.
And if you don't want it, don't register.
I would like to see some language to protect retailers from the costs of collecting the taxes.
H.R.25Fair Tax Act of 2005 (Introduced in House)
`SEC. 204. ADMINISTRATION CREDIT.
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That wouldn't even cover the extra cost for processing credit card transactions. Not even close. The retailer is paying ~2% to process the transaction and you are giving them 0.25%. Nice.
`(a) In General- Every person filing a timely monthly report (with regard to extensions) in compliance with section 501 shall be entitled to a taxpayer administrative credit equal to the greater of--
`(1) $200, or
`(2) one-quarter of 1 percent of the tax remitted.
`(b) Limitation- The credit allowed under this section shall not exceed 20 percent of the tax due to be remitted prior to the application of any credit or credits permitted by section 201.
a small business that $200 limit to 20% of the tax remittence due, is a greater than the claimed tax compliance cost you suggest that business is paying today of ~2%.
a small business that $200 limit to 20% of the tax remittence due, is a greater than the claimed tax compliance cost you suggest that business is paying today of ~2%.It would have to be a real small business. For $200 to be 20% of tax due the business's net sales would only be $3000 a month. That's not most businesses. Most retail businesses are going to get hit hard with compliance costs. And these are out-of-pocket costs, not some made-up costs.
This tells me you haven't even checked into it. The rebate you get pays for your sales tax on necessities. You will be paying less for those necessities. Read before you scream.
Today $725 for each 100 dollars of income tax remitted is the Tax Foundation figure generally quoted for small businesses, IIRC.Yeah, well that number is crap. Anybody can come up with any number they want.
The compliance cost of the NRST amounts to filling out a form that is already filled out for state sales taxes in remitting the federal NRST right along with those state sales taxes.Actually, it amounts to filling out a form for every state you ship to. Currently, ship to 30 states, fill out one form (if you have offices in one state). With the FairTax, ship to 30 states, fill out 30 forms a month!
Seeing as no tax credit is provided under current law, and the Fair Tax provides such credit the difference is appropriate to the incremental reporting diffence of business accounting that already occurs in the course of a properly run business.As I said, it doesn't even cover the increase in credit card processing.
What are my necessities and what do they cost me know?
There hasn't been any tax remitted on the very first day. Where does the money come from?
If I'm 18 and live with my parents do I get a rebate "the very first day"?
So there are never any sales or reduced prices where you live?
Receipts of the income tax withholding from the prior month.
If I'm 18 and live with my parents do I get a rebate "the very first day"?
If you share a common residence and your parents register for the FCA and include your SSN, then no; alternatively they can designate all family members 18 and older and the rebate will be divided evenly between those listed.
And if your parents don't want to register then you can for yourself. --but, then you already knew that.
Lewis, your continual whizzing on the carpet is a cry for help. Seek it.
So, if I'm hearing you right, because people were abused in the past, others must continue to be abused in the future, to make it "fair"?
The estimates I've seen seem to show that prices will remain relatively stable due to the fact that business taxes (passed along to the consumer) will be gone.
I'm close to retirement age, but I could live with the NRST and no income or SS taxes.
So, if I'm hearing you right, because people were abused in the past, others must continue to be abused in the future, to make it "fair"?
The estimates I've seen seem to show that prices will remain relatively stable due to the fact that business taxes (passed along to the consumer) will be gone.
I'm close to retirement age, but I could live with the NRST and no income or SS taxes.
Sorry- thought it didn't go through!
Receipts of the income tax withholding from the prior month.
Is that a guess or are you privy to information no one else has?
I wasn't aware money from withholding was just extra money laying around waiting to be sent to every houshold in the nation.
alternatively they can designate all family members 18 and older and the rebate will be divided evenly between those listed.
So if you're 18, with a job, living at home you wouldn't get your income tax refund if you had one coming to you?...Your dad could give you half of the "family consumption allowance" rebate instead?
but, then you already knew that. Lewis, your continual whizzing on the carpet is a cry for help. Seek it.
Whizzing on the carpet? or YOUR carpet?
Sorry to ruin your little half truth. Do you have a problem disclosing the facts?...Are you afraid of disclosing the truth?...
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