Fair Tax will penalize those on Social Security since they will not realize any income increase if the income tax is abolished because no withholding is taken on SS payments.
Correct me if I'm wrong, but even though there's no withholding, SS recipients still pay income tax on their SS income, do they not?
Fair Tax will penalize those on Social Security since they will not realize any income increase if the income tax is abolished because no withholding is taken on SS payments.
Interesting point that they already receive their gross income, and others don't. But your contention that they will not see an increase in their income is but not very accurate. For like every one else, Social Security recipients will receive the same Family Consumption Allowence rebating sales tax payments for purchases to the poverty level.
Since as a point of fact the purchasing power of Social Security payments will be maintained through the inclusion of the Fair Tax within the CPI along with all other sales taxes on the cost of goods and services. It must be noted that CPI is not adjusted for income or payroll taxes today, inspite of the fact that income and payroll taxes paid by corportations which provide the goods and services must pay those taxes out of their sales revenues.
Social Security will be assured cost of living adjustments sufficient to track any change in cost of living including those due to sales taxes, as it done today, at the same time will receive the FCA sales tax rebate as well.
I don't see Social Secuity recipient being penalized by income going down in any sense of the word, quite the contrary.
Can you imagine a 30,000 a year tax bill, on an Alzheimer’s patient?
Fairtax has an avalanche of absurd results, the fairtax folks haven’t even considered