post #19 Just like 45 States already do.
I'm in one of the states that allows some exemptions.
EXEMPTIONS: Why on earth would you want exemptions. Do you want DC and the politicians involved with what is exempt and what is not? Do you want them to use your new "pure" tax code as a means to pay off favors for campaign money?
Your exemptions as you call it comes in the form of a tax refund every month on the cost of necessities up to the poverty level. The rates are based on the long standing HHS poverty level tables, and it essentially gives EVERY AMERICAN with a social security number, a rebate or tax free spending up to the poverty level for his household.
Did you get the catch? EVERY AMERICAN WITH A SOCIAL SECURITY NUMBER....WHEEEEEE That means foreign tourists (45million), and illegal aliens (24million and climbing) will NOT be getting their little "rebate" on taxes paid each month, as they have no legal social security number. Its the main reason that a rebate system rather than "exemptions" that would go to everyone at the register, illegal or not, was used to make the tax the most progressive tax in the history of the world.
Under FairTax and its rebate system, those living at or below the poverty level, at any age, for any reason, will be living totally tax free. Try living totally tax free today with a 7.65% FICA eating at your paycheck. The net effective tax rate will go from 0 - 23% depending on how "large" you choose to live, and I do think that the rich having more to spend, will spend more than those with less to spend. Of course they will, how can you spend what you don't have. Make $25000 as a family of 4 and you will pay 0 % tax, make $50,000 family of 4 and you will pay a total of about 8% , make $30000 as 2 seniors and you will pay about 6% after all your tax free "deductions" come into play.
So now let's review....instead of exemptions, we will give you the taxes back on your major necessities, so you don't pay taxes on food and clothing, while the DC politicians are left with nothing to bargain with for favors in the Capital, and while the illegals pay tax at the register contributing to our government costs and our social security system that they will NOT be collecting on, while they don't get a refund of their taxes....all's right with the world, the FairTax HR 25 wins hands down again...
Next question!!!!!!!!!
ps visit http://www.pafairtax.org/calc.php to see what your tax rate will be after all FairTax deductions and see what your tax free spending refund will be for your household.
witchypooy@aol.com
I no longer get a pay check, so that 7.65% tax rate (to be correct, you need to add in the portion paid "by the employer") anymore. I live on my former earnings, money that has already been taxed, much of it at the highest rate at the time it was earned.
The exemptions I was talking about were sales tax exemptions allowed in my state. You know, those business to business transactions we talked about earlier.
My state does not tax some business to business transactions. For example, the manufacturing exemption includes materials which are consumed in the manufacturing process. Machinery & equipment which is used in the manufacturing process are also exempt. Oils, lubricants, welding supplies or gases & similar substances which are used up during the manufacturing process are also exempt. There are more, but it's been awhile since I delt with all of the particulars.
Meanwhile, oil & fuel used for the company fleet are not exempt. Sales tax is collected for those expenses, as are the transactions for furniture & fixtures used to support a manufacturing operation.
Sales for resale are another *exemption*.