Under a retail sales tax system designed to replace the federal tax revenues from all income and payroll taxes (business level as well as individual), the revene that is now collected from businesses financed through product sales would be collected from individuals purchasing for consumption, that would merely add to those lower producer level prices that are consequent to repleal of business taxes bringing the total (retail sales tax exise plus producer price) payment by individuals for consumption to a level equivalent to the prices paid by individuals before change over from a federal income/payroll tax sytem to a pure national retail sales tax system.
That is one long sentence...what the hell does it mean?
the revene that is now collected from businesses financed through product sales would be collected from individuals purchasing for consumption,
Otherwise known as double talk...Does that mean under the "pure national sales tax" it will be passed on to the consumer...like you claim it does now?
Does that mean under the "pure national sales tax" it will be passed on to the consumer...like you claim it does now?
No, for its not a vat, turnover, or business transfer tax which are just passed on to a consumer integrally embedded into pricing.
The FairTax NRST is a "pure national retail sales tax" tax collected at retail level only and directly from the consumer quite openly and visibly, the amount listed separately as a line item of the retail sales receipt just as retail sales taxes collected and receipted throughout the United States today.
H.R.25Fair Tax Act of 2005 (Introduced in House) `SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.`(a) In General- For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase. For purchase of taxable property or services for which a tax is imposed by section 101, the seller shall provide to the purchaser a receipt for each transaction that includes--
|
Since it is a "pure national retail sales tax", purchases for business and investment purposes are exempt from the NRST.
H.R.25Fair Tax Act of 2005 (Introduced in House) SEC. 101. IMPOSITION OF SALES TAX. (d) Liability for Tax-
`SEC. 102. INTERMEDIATE AND EXPORT SALES.`(a) In General- For purposes of this subtitle--
`(b) Business Purposes- For purposes of this section, the term `purchased for a business purpose in a trade or business' means purchased by a person engaged in a trade or business and used in that trade or business--
`(c) Investment Purposes- For purposes of this section, the term `purchased for an investment purpose' means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts. |