Posted on 04/19/2006 3:43:31 PM PDT by Bigun
Me? Come on Chesty! Everybody knows I'm just a lovable little fuzzball!
I can't help it if the truth upsets certain folks.
Sure, that's exactly what I'm saying. Tax me to smithereens and give me a grillion tiny ways to lower that tax, make those methods so complicated I have to pay someone to figure it out, and ask Algernon why my life is so full of forms. LOL.
And how is it that you now - under the income tax - limit the tax you pay when you purchase things??? You don't; you pay the artificially inflated prices that are embedded tax costs caused by the income tax system.
You just have the added pleasure of fiddling with tax forms/software as an additional benefit of the I.T. Of course, if you make an error on that ...
With the FairTax there is no taxpayer interaction with the government - none. Whe he FairTax becomes law you - along with most taxpayers - will probably be better off from the standpoint of disposable personal income than at present wihout the fun/expense of fiddling with TurboTax (or your tax preparer).
TurboTax? You have an above average income and don't hire a team of CPA's to do your taxes? I would think your time would be so much more valuable than that. Got IRS Sidney?
Your CPA's charge you 1,000 bucks an hour? You should find other ones. I have plenty of idle time BTW. I'm posting to you aren't I? What could be more idle than that?
Indeed I'm cetain that prices will drop some with the advent of he FairTax and that woekers will get prety much their entire gross wages (ignoring non-federal withholding).
Prices, though lower, will then be raised somewhat on an after tax basis of course, but overall most taxpayers will end up with more disposable personal income than at present.
In addiion, the US economy will greatly benefit from the effects of the FairTax. When you purchase a house under the FairTax, it it's used, there is no tax, if new, then its price will be lower than the same house under tha income tax. Furthermore, you'll be buying it with untaxed dollars and your mortgage rate will be about 25% lower than at present.
There's no "deduction" under the FairTax since it is not needed - no income is taxed (period). There are plenty of incentives to owning a home but "tax incentives" would probably be about one of the worst of all.
A house is not an investment, it's a home.
You have no idea what you're talking about ... none.
First of all NO ONE will pay 30% tax exclusive (23% t-i) under the FairTax as now written. It is mathematically not possible - ever. More than that however, the rate if passed today would be something like 19% t-i (23.5 t-e), but the same reasoning applies.
In addition, the interest rate paid on the home purchase would drop by about 25% from what it would presently be saving thousands in interstt rates. And most loans are not for 100% of the value in any event.
More than that, though, the money used would be untaxed money rather than money that has already been greatly restriced due to the extracton of income taxes. That allows people to save up more quickly for a downpayment also.
Don't forget also that the prebate helps offset the amount of tax involved plus the fact that used homes are not taxed at all.
Whether one wants a home or not is an individual decision and one that really isn't altered by the FairTax. The purchaser is free to make his own decision as to new or used as well as the price level involved.
Your reasoning is indeed specious.
Today's corporate income tax and associated compliance and efficiency costs is in effect a hidden VAT tax embedded in retail prices today. So what we have today is the worst of both systems.
None of the FairTax supporters will stop with it's passage until the Constitution is amended to repeal the 16th. Due to the ratification requirements, this is of necessity a separate but parallel process to enacting the FairTax. The replacement must be online before repealing the 16th. There could also be a sunset provision in the FairTax if the repeal of the 16th is not completed in a timely manner.
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