[Quicksilver]

The one problem that I don't see how NRST can surmount is that retired and disabled citizens--who don't pay federal payroll taxes--won't have any incentive to support it.

[ancient_geezer]

I don't see how NRST can surmount is that retired and disabled citizens--who don't pay federal payroll taxes--won't have any incentive to support it.

I am, and I support it. For my family, and it does provide a compensation to the retired individual through the FCA.

 

All legal residents will receive a FCA equivalent to the FairTax paid on essential goods and services. The FCA will be paid in advance, in equal installments each month. The size of the monthly FCA will be determined by the government's Poverty Level for a particular family size, multiplied by the tax rate.

Every year, the Department of Health and Human Services [HHS] determine the "poverty level" for each family size.

The 2001 "FairTax" Family Consumption Allowance Figures
Family Size	HHS Poverty Level	Annual FCA	Monthly FCA
One	$8,590	$1,976	$165
Two	$17,180	$3,951	$329
Three	$20,200	$4,646	$387
Four	$23,220	$5,341	$445
Five	$26,240	$6,035	$503
Six	$29,260	$6,730	$561
Seven	$32,280	$7,424	$619
Eight	$35,300	$8,119	$677

1) Federal Register: February 16, 2001, Pages 10695-10697).

[ The monthly FCA for each adult is .23 * (HSS poverty level for a single person)/12 to assure no marriage penalty due to the manner in which the poverty level is dependant on family size. The monthly FCA for each child is .23 * (the incremental increase of HSS poverty level for a family with one child over no child) ] A. Geezer

A family of four, for example, could spend $23,220 per year free of tax because they will have received over the course of the year rebates totaling $5,341. $5,341 is the amount of sales tax paid on $23,220 in expenditures. A family spending double the "poverty level" or $46,440 per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.

The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.

The effective FairTax rate for a family of four at various expenditure/income levels:

[Taxman]

Older citizens will not be harmed by the NRST. And their children, grandchildren and their country will benefit enormously.

I say that because the academicians (Kotlikoff et al) who have studied this shift to consumption taxation clearly show that the cost of the progressive income tax system embedded in the cost of goods and services (25%, on average at the retail level) will be squeezed out due to competitive pressures resulting in no increase in retail prices.

That is, a $20,000 automobile in the progressive income tax economy will still be a $20,000 automobile in the NRST economy. Do the math: if 25% of the retail price of the automobile is a "Tax cost of government," and that cost is eliminated with the NRST, the resulting $15,000 auto will cost $20,000 with a 33% NRST.

In short, consumers, whatever their economic status, will not be hurt by the NRST. They will, in fact, benefit, because, all things being equal, every consumer will have more disposable income and more important, will be in control of how they dispose of that income. Consumers, not government, will decide when and how much federal taxes they pay. That is economic FReedom, my FRiend.

And, it is worth fighting for!

Go to http://www.salestax.org and http://www.votr.org to find out how you can help us do this. We need your help.