To: Eaglewatcher
I don't believe 23 percent will be enough to result in revenue neutral federal tax receipts. Here's why.
Of the 23 percent, 15.3 would still have to go to the Social Security fund, leaving 7.7 to generate about two trillion which is the amount currently generated by all federal taxes other than Social Security. This means annual expenditures on new items at the retail level would have to be about 26 trillion. This converts to about $180,000 for each of the 144 million persons currently employed in the country. This seems very unlikely to me.
10 posted on
04/26/2006 9:29:21 AM PDT by
layman
(Card Carrying Infidel)
To: layman
Remember with this tax it would not be just people who are employed paying the tax. Since it is a national sales tax, anyone who goes and buy things would be paying the tax. That includes all Americans, those working and not working, and and anyone else who is here in the country.
13 posted on
04/26/2006 10:06:30 AM PDT by
FloridianBushFan
(I support National Security. I SUPPORT HR4437)
To: layman
Of the 23 percent, 15.3 would still have to go to the Social Security fund...Where does this come from?
CA....
14 posted on
04/26/2006 10:15:29 AM PDT by
Chances Are
(Whew! It seems I've once again found that silly grin!)
To: layman
Your numbers are "awry" by a considerable amount. You shouldn't try this at homw - you might hurt yourself.
By reading the FairTax bill, one can easily determine that the correct number is not your "15.3" but 8.09% tax inclusive of the taxable amount of the transaction taxed. That generaltes the same amount of money for SS/MC as the present payroll taxes.
the rest of your "reasoning" is equally flawed, but I see no need to educate you if you can't do so yourself as the information is readily available to anyone wishing to learn. Try the FairTax bill and the FairTax website.
28 posted on
04/26/2006 2:35:30 PM PDT by
pigdog
To: layman
THe 15.3% is from the wage base. However, the consumption base will be nearly twice as large - in fact the amount of the nrst devoted to pay SS/MC is 35% of the total or about 8.1 of the 23 - not 15.3 of the 23.
That leaves 65% of taxe revenue to be devoted to general revenue, not 33%.
To: layman
I don't believe 23 percent will be enough to result in revenue neutral federal tax receipts. Here's why. Of the 23 percent, 15.3 would still have to go to the Social Security fund, leaving 7.7 to generate about two trillion which is the amount currently generated by all federal taxes other than Social Security. This means annual expenditures on new items at the retail level would have to be about 26 trillion. This converts to about $180,000 for each of the 144 million persons currently employed in the country. This seems very unlikely to me.
The 23% will be enough to be revenue neutral. Most people fall into the 15% tax bracket. All wage earners also pay a 7.65% payroll tax. The total of the two covers the 23%.
Fair Tax FAQ #5
56 posted on
04/26/2006 5:03:16 PM PDT by
Man50D
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