For many social security recipients, H.R. 25 decreases purchasing power.
I said the calculation of purchasing power seems bogus because there is an assumption all purchases are taxed. Pehaps you could show me how this is not so.
If you have after tax wealth under the old system you don’t get taxed another 30% when you spend it like you would with this plan.
That alone is enough to reject the plan.
Have a nice day.
Well, to name a few off the top of my head:
Interest payments are taxed, even on "used" purchases (including mortgage interest),
earned interest is taxed,
leases are taxed,
banking services are taxed,
investment services are taxed, it's all in the bill.
Groceries are taxed.
Heating bills are taxed.
Electric bills are taxed
Garbage bills are taxed.
Sewer service is taxed.
Water service is taxed.
Gasoline is taxed.
UPS is taxed.
Mail service is taxed.
Haircuts are taxed.
Auto repair labor is taxed (I don't know about you but I prefer new parts too)
Lawn service is taxed.
Prescription and over the counter drugs are taxed.
Medical care is taxed.
ALL Insurances are taxed.
Legal services are taxed.
Rent is taxed.
Public transit is taxed.
Taxi's are taxed.
Flying is taxed.
Travel by rail is taxed.
Telephone service is taxed.
Satellite/cable service is taxed.
Your nanny/domestic service is taxed.
There's even a tax on "ANY government" wages salaries and benefits (it too is in the bill under "taxable employer").
Oh yeah, and not everyone likes buying used TVs, computers, and other electronic equipment let alone wear their neighbor’s used clothing.
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(b) Rate-
`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.