Free Republic
Browse · Search
Smoky Backroom
Topics · Post Article

To: Congressman Billybob
In another form the FairTax is just another form of withholding, this time by the retailer rather than the employer ... except you get no summary accounting of what you pay over time.

So how so you think the average, math averse taxpayer will reconcile his daily FairTax tithing at the grocery store against the lump sum payment they receive monthly to offset his spending on "necessities," (his "prebate")??

My guess is probably the same he rationalize his 1040 each year: "I didn't pay any tax, I got a refund!."

A conversation overheard after the implementation of the FairTax:

If anything, the amount of tax paid is totally lost in plain sight under the FairTax by dicing up the payments into thousands if tiny daily bits. Then buried further by the prebate. You will NEVER know how much tax you really paid unless you keep track of EVERY receipt you get ... and properly deduct your prebate. There is no summary accounting.

If you want to make taxpayers painfully aware of their tax burden, simply eliminate withholding and force Joe Taxpayer to write a monthly check ... rather than receive one.

51 posted on 10/19/2006 7:38:55 PM PDT by Dimples
[ Post Reply | Private Reply | To 31 | View Replies ]


To: Dimples
You are missing a critical point. "Withholding" means the government gets the money before you ever receive it. That's the key to avoiding maximum response from the taxpayers. When you pay a tax at the grocery store, you've already gotten the money and know when you are paying it out.

John / Billybob
57 posted on 10/19/2006 7:47:47 PM PDT by Congressman Billybob (Have a look-see. Please get involved.)
[ Post Reply | Private Reply | To 51 | View Replies ]

To: Dimples
If you want to make taxpayers painfully aware of their tax burden, simply eliminate withholding and force Joe Taxpayer to write a monthly check ... rather than receive one.

Like many ideas on their face, brilliantly simple but impossible to impliment. It is similar to saying the secret to a happy life is to find happiness.

61 posted on 10/19/2006 7:51:15 PM PDT by Mind-numbed Robot (Not all that needs to be done, needs to be done by the government.)
[ Post Reply | Private Reply | To 51 | View Replies ]

To: Dimples
"... the amount of tax paid is totally lost in plain sight under the FairTax ..."

Far from it. In fact a receipt is required with each taxable purchase that clearly shows the amount and rate of the tax. Anyone buying something will certain notice how much "his government" is costing him for that loaf of bread (or that BMW).

People aren't stupid and they'll quickly realize the benefits of having a lower effective tax rate than at present for most taxpayers and for making the connection that taxes on everything cost a great deal - every time they take out some greenbacks to pay. Unlike the income tax system, no tax is hidden and none cascades.

88 posted on 10/19/2006 8:31:15 PM PDT by pigdog
[ Post Reply | Private Reply | To 51 | View Replies ]

To: Dimples
So how so you think the average, math averse taxpayer will reconcile his daily FairTax tithing at the grocery store against the lump sum payment they receive monthly to offset his spending on "necessities," (his "prebate")??

The average math adverse taxpayer will not have to reconcile or calculate any tax at the grocery store because the tax rate will be factored in after the total is determined just as it is for state sales taxes. The recalculation for the prebate is not done by either the retailer or the taxpayer. It will be done by the Department Of Health and Human and Human Services Fair Tax SEC.303.

If anything, the amount of tax paid is totally lost in plain sight under the FairTax by dicing up the payments into thousands if tiny daily bits.

The tax paid isn't lost at all. It will be printed on the receipt just as it is for state sales taxes.

Then buried further by the prebate. You will NEVER know how much tax you really paid unless you keep track of EVERY receipt you get ... and properly deduct your prebate. There is no summary accounting.

The prebate is determined by the size of the family and income level. Fair tax FAQ #3

If you want to make taxpayers painfully aware of their tax burden, simply eliminate withholding and force Joe Taxpayer to write a monthly check ... rather than receive one.

They will be aware with a consumption tax every time they make a purchase. It will be printed on their receipt. Eliminating holding is only tinkering with the existing oppressive income tax code and does not abolish the IRS.

114 posted on 10/20/2006 1:14:27 AM PDT by Man50D (Fair Tax , you earn it , you keep it!)
[ Post Reply | Private Reply | To 51 | View Replies ]

To: Dimples
The politicians will never eliminate withholding. As for the notion people don't know much sales tax they pay, of course we do. Its upfront in the price of every good since its tacked after the price is set. At that point, one decides if an item is worth getting even with the tax. If its too onerous, one can simply refuse to buy. Therein lies the beauty of the Fair Tax. The power to supply government with increased revenue rests with you and your decision on whether or not to make a purchase. You refuse, the government doesn't get paid. Whereas in contrast under the income tax, you have to pay regardless of the state of the economy or you don't like what happens with the money. The power belongs to the IRS and its jack-booted goons. If we're discussing true accountability, no question in my mind at all - the Fair Tax is the way to go.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

174 posted on 10/20/2006 1:46:41 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
[ Post Reply | Private Reply | To 51 | View Replies ]

Free Republic
Browse · Search
Smoky Backroom
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson