Skip to comments.CALCULATE YOUR PERSONAL FAIR TAX RATE COMPARED TO YOUR 2004 INCOME TAX-FICA TAXES
Posted on 04/18/2005 9:30:29 AM PDT by witchypooy
IT'S YOUR PAYCHECK - KEEP IT ALL FAIRTAX CALCULATOR HR25/S25
Now that April 15 is past, it's time to tally up the tax score. Go to the FairTax calculator, http://www.pafairtax.org/calc.php and using 2004 figures, figure out (anonymously) what you would have spent in 2004 in taxes if we had the FairTax, the simple, honest, and progressive national retail sales tax, instead of our current complex income tax/FICA tax system.
TOTAL INCOME TAX + TOTAL FICA = TOTAL FAIRTAX : For your household, please remember to make an honest and accurate comparison. FairTax will fund social security and medicare with 1/3 of all sales taxes collected, thus eliminating FICA withholding from your pay also. Therefore, to be an honest comparison, you MUST take your total 2004 income tax paid PLUS your total FICA withholding for the year for social security and medicare, and add them together. This becomes the accurate figure for current income/fica you would compare to the projected FairTax shown on the calculator. You can get the total FICA withheld for the year off your last pay stub, or just figure 7.65% of your yearly gross wages. If you are self-employed you will figure 15.3% for FICA.
We are only dealing with the 7.65% FICA you pay yourself here. Remember, your employer also pays 7.65% for you under today's system. In Business bookkeeping terms, this is actually YOUR money that your employer must spend for your benefit, and really should also be added to your overall Income Tax/FICA costs today. Under FairTax your employer will NOT be paying FICA on your behalf. This business expense is eliminated. This FairTax advantage means more money for businesses to use to either lower prices, or raise wages.
The rebate of taxes paid up to the poverty level of spending for your household, that will be provided to ALL Americans under FairTax, is calculated and shown in the FairTax calculator formula. The HHS poverty lever table is also there, for all situations. This rebate essentially gives every American tax free spending on the necessities of life.
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A "progressive national retail sales tax"?
How could it be progressive? Rich people will pay more for goods than poor people? How would that be set up?
Better for them to compare to the existing tax system sans social security.
Interesting . . .
I'm tired of paying for your f*cking Viagra. You want it? Go pay for it your damn self.
ping for later
And yes, out of control spending on the part of Congress is exactly how we ended up with the AARP's Medicaid/Medicare package.
Get a clue.
.....I'm so tired of this crap I could scream....
I suggest you take some of the time you retired and out of work types have on your hands and take a closer look at it before passing judgement...It seems to me you are looking at it from only one small aspect and not the whole effect it will have including our ability to continue paying SS that was underfunded and also take the brakes off our economy from the mountain of compliance costs and imbedded taxes in our products and srvices. It does a lot more than end withholding..it puts the tax rate right out there for everyone to see what they are paying for govt. It might stop Congress from bankrupting the US....imagine if there is not enough money to fund you Social Security without the NRST then how would you feel? I'm sick and tired of the underground economy and illegals getting a free ride, and I think this NRST will go a long way to getting them to pay part of their way. It broadens the tax base allowing each of us to pay less. Please take a look at the links I previously posted to you and respond with your comments, not screams......
My heart pumps peanut-butter for all you old farts. Try reading the actual bill submitted by Linder...
Have you considered the fact that "Rich People" spend more money and will therefore pay more taxes than "Poor People?"
If you would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Refer for additional information:
Now go back and cacluate what you'll pay when we have both an NRST and an Income Tax.
In effect, that's what we have now. Personal income and payroll taxes reduce your earnings, and business income and payroll taxes inflate prices.
How could it be progressive?
By rebating the amount of NRST on the HHS povertylevel of expenditures for households.
That's the GAG! You're paying it already! Business/Corporate income tax costs are passed on to their customers.