Seems to me you have stated many times that you thought the appropriate level for the fair tax was closer to 19%. Very prescient of you. Compliments.
Seems to me you have stated many times that you thought the appropriate level for the fair tax was closer to 19%. Very prescient of you. Compliments.
Not prescient. just applying what is known and published about the Bush tax cuts and their consequent effective tax rate as compared to pre-2000 tax rates when the FairTax legislation was authored. I merely assume the change in NRST rate would be proportionate to the change in the total effective federal tax rate documented by the Tax Foundation folks.
refer Tax Freedom Day 2005 report PDF: Special Report No.134, April 2005
Total Effective Tax Rates by Level of Government |
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Year | Federal | State | Total |
1996 | 21.3% | 10.4% | 31.6% |
1997 | 21.8% | 10.3% | 32.1% |
1998 | 22.4% | 10.4% | 32.8% |
19990 | 22.5% | 10.4% | 32.9% |
2000 | 23.1% | 10.4% | 33.5% |
2001 | 22.2% | 10.5% | 32.7% |
2002 1 | 19.6% | 10.2% | 29.8% |
2003 2 | 18.8% | 10.1% | 28.9% |
2004 3 | 18.4% | 10.2% | 28.6% |
2005 | 19.0% | 10.1% | 29.1% |
Notes: Leap day is omitted to make dates comparable over time. Since depreciation is not available to pay taxes, GDP is an overstatement of spendable income for the purpose of measuring tax burdens. Depreciation is netted out of NNP. "Overall, NNP provides the best statistical representation of the common notion of spendable resources. In 2004 NNP was $10,371.6 billion. Like GDP and PI, NNP is a component of the National Income Product Accounts (NIPA). These accounts are computed and compiled annually by the Commerce Depart-ments Bureau of Economic Analysis (BEA)." 0 First year introduction of HR2525(Fair Tax legislation). 1 Economic Growth and Tax Reform Reconciliation Act of 2001 Sources: Office of Management and Budget; Internal Revenue Service; Congressional Research Service; National Bureau of Economic Research; Treasury Department; and Tax Foundation calculations. |