Yes.
They may decide on their own necessities.
HR2525 asserts that there is a certain level of spending that should be without taxes. Regardless of how you choose to use up your tax-free purchases, there is a defined level of purchases that are made tax free.
Similarly, it asserts that only discretionary spending should be taxed.
To synthesize these assertions, it was concluded that untaxing necessities of life (as defined by the individual) would satisfy both of these. The ned result is that necessities are not taxed while the remainder is discretionary and is taxable spending (by definition that which is not necessary is discreitonary).
THere is no question in my mind, after studying the bill for years, that the mechanism used to untax is a refund of taxes - as it is a refund, it is not an entitlement. Money does not flow from one individual to another individual. Money flows back and forth between a single individual and the government.
The level of tax-free purchase is set at the HHS poverty level. See ancient_geezer's many posts for definitions and links if desired. Contrary to the assertions of another poster, the poverty level is not arbitrarily set by a bureaucrat without oversight by elected officials. Again, see the links from ancient_geezer.
The question I still have is about changing the level of tax free spending at some point in the future.
COngress sets the actual tax rate. I want to know more about the mechanism behind the potential changes in the level of tax free spending...
From an economic and a political standpoint, the overall tax rate will have trememdous downward pressure on it. The left, however, will put upward pressure on the level of tax free spending. But if the level of tax free spending increased, so would increase the overall tax rate.
So there will be competing interests, mitigated by the fact that the left will be less motivated to raise rates on themselves. As it is now, the left is desirous of raising tax rates on only SOME... but the nrst makes an increase in the rate afect ALL voters and ALL individuals.
The left is further hampered by the daily routine of individuals pulling green cash from their pockets to pay for the machine. There is a certain segment of society that, regardless if someone has told them their spending is tax free, will still perceive that they're paying tax when they pull cash from their pockets. This segment (usually the beneficiary and supporter of the left) will no longer be in the left's corner.
So while there will competing interests in setting the overall rate and the tax-free rate, the overall rate has far more power imo. But I'm open.
Geez, can you help with me understanding the mechanism employed by hr2525 in regards to changing the tax free rate?
Geez, can you help with me understanding the mechanism employed by hr2525 in regards to changing the tax free rate?
It is expressly the NRST rate enacted by Congress and nothing else.
HR2525: CHAPTER 3 FAMILY CONSUMPTION ALLOWANCE
`SEC. 301. FAMILY CONSUMPTION ALLOWANCE.
`Each qualified family shall be eligible to receive a sales tax rebate each month. The sales tax rebate shall be in an amount equal to the product of--
`(1) the rate of tax imposed by section 101, and
`(2) the monthly poverty level.***
SEC. 303. MONTHLY POVERTY LEVEL.
`(a) IN GENERAL- The monthly poverty level for any particular month shall be one-twelfth of the `annual poverty level'. For purposes of this section the `annual poverty level' shall be the sum of--
`(1) the annual level determined by the Department of Health and Human Services poverty guidelines required by section 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a particular family size, and
`(2) in case of families that include a married couple, the `annual marriage penalty elimination amount'.`(b) ANNUAL MARRIAGE PENALTY ELIMINATION AMOUNT- The annual marriage penalty elimination amount shall be the amount that is--
`(1) the amount that is two times the annual level determined by the Department of Health and Human Services poverty guidelines required by sections 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a family of one, less
`(2) the annual level determined by the Department of Health and Human Services poverty guidelines required by section 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a family of two.`SEC. 304. REBATE MECHANISM.
`(a) GENERAL RULE- The Social Security Administration shall provide a monthly sales tax rebate to duly registered qualified families in an amount determined in accordance with section 301.
`(b) PERSONS RECEIVING REBATE- The payments shall be made to the persons designated by the qualifying family in the annual or revised registration for each qualified family in effect with respect to the month for which payment is being made. Payments may only be made to persons 18 years or older. If more than 1 person is designated in a registration to receive the rebate, then the rebate payment shall be divided evenly between or among those persons designated.
`(c) WHEN REBATES MAILED- Rebates shall be mailed on or before the first business day of the month for which the rebate is being provided.
`(d) SMARTCARDS AND DIRECT ELECTRONIC DEPOSIT PERMISSIBLE- The Social Security Administration may provide rebates in the form of smartcards that carry cash balances in their memory for use in making purchases at retail establishments or by direct electronic deposit.