Posted on 01/19/2006 7:55:17 AM PST by Eaglewatcher
Fair Tax Legislative Package -HR 25/S25
1. Supported by Alan Greenspan and 75 other Economists and Economic Professors. They all support a consumption tax as better for America than an income tax.
2. Removes the most regressive tax on the poor and middle class- the payroll tax. Provides a broader based tax for Social Security and Medicare. The Fair Tax also replaces the personal and business income tax, AMT(Alternative Minimum Tax), death tax, capital gains tax and investment taxes.
3. Removes business income and payroll taxes resulting in a drop in prices by 10 to 25%. Saves an estimated $250 to $400 Billion annually in unproductive tax compliance costs.
4. Eliminates the cumbersome IRS Tax code and replaces it with a National Sales tax of 30%(income tax equivalent of 23%). With price drop consumers pay about the same. Under the arcahic Income and payroll tax a middle class family had to earn a gross pay of $148 to bring $100 Home. Under the Fair Tax you bring $148 dollars home and with a minimum 10% price drop that same $100 of Goods costs you $90. Add the Sales Tax your new total is $117. You net $31 extra.
5. Fights outsourcing; increases Manufacturing and business growth back in America. Boosts Economic Growth an estimated 6 to 10% in the first year. Increased job growth.
6. Reduces the trade deficit because exports will not pay the sales tax and be 10 to 25% cheaper for sale overseas. Leveling playing field with low wage countries. (Unions should support)
7. US shores will be the most competitive corporate tax -free zone not the Bahamas. Corporate headquarters and many other businesses can return to US soil and be more competitive. Investment capital will flow and American Based business and jobs will grow.
8. Average working families take home 100% of their paychecks, no Federal income tax or payroll deductions. Average family of 4 making $50,000/yr takes home $5,000 to $7500 more.
9. Families have more Spendable income for Health Insurance, Childcare, College tuition, and Private retirement Savings accounts. It's their choice for their family. "Ownership"
10. Fair Tax package is revenue neutral and Progressive with a Prebate of Sales tax up to the Poverty line of spending. Family of 4 gets $492/m. Couple receives $367/m. No receipts, no complicated filing for refunds. A refillable monthly debit card to cover Sales tax on all purchases up to the poverty line of Spending - Family of 4 HHS sets in 2005 at $25,660- Prebate is $492/m
The Fair Tax is revenue neutral, progressive and fair. Net tax rate for the Poor at the poverty line is 0%, for the middle class at twice the poverty line is 11.5%; for 4 times poverty line 17.2% and the more you spend your net rate is between 20 and 23%.
The Fair Tax meets requirements set by President Bush when he said, "simplify" the tax code in a way that is fair, does not raise or lower the overall tax burden and better promotes "long-run economic growth and job creation." It also meets his standard for promoting Home ownership and Charities.
Get the facts at www.fairtaxvolunteer.org/smart/faq.html
Family Friendly Tax Reform
www.fairtax.org
Time to sweep out the old code and bring in a fairer and simpler system forAmerican Families, American Workers and the American Economy.
Tax Reform with far less pain and much more gain in One Legislative package HR25/S25.
Well it only took the first line to get to the first lie. Greenspan supports a consumption-based tax like a VAT. Greenspan has never specifically stated he supported the fairtax.
Unfortunately, most Americans want an unfair tax that benefits them and hurts everyone else.
It will also eliminate the tax shelters that allow rich liberals like the Kennedys to pay practically no taxes.
Yawn. Monthly post.
If a fire has oxygen and fuel and heat then, by difinition it won't die. This fire doesn't have some crucial components, including the fact that it's NOT a good idea (see my previous responses).
Moderator - Can we have an option to automatically re-post my tomes on the problems w/ this idea if these people keep resposting to "keep the fires alive"?
It eliminates the ability of the government to control freedom of speech by tax exempt organizations such as churches.
That's because it taxes Churches and removes any deduction for contributions. A Church can opt for that today.
If it taxes them, it taxes only on items that are purchased. Currently tax exempt organizations are allowed to purchase items tax free at the state level and I don't see that [portion changing. A good portion of a church's budget is towards missions and salaries.
And under the fairtax, church's would have to pay a 30% tax on those salaries as the consumer.
If it taxes them, it taxes only on items that are purchased.If they sell cakes at a bake sale or have a bingo game they have to remit 23% of the gross.
Nope. Nothing at all in HR 25 that says anything even remotely like that.
http://thomas.loc.gov/ Search for HR 25
If a church has to resort to bake sales to fund their missions, they are in trouble anyway.
Actually it does. If the end consumer is the church, they must pay sales tax on the purchace of those services. Only if the church sells those services would there be no tax due. There would have to be an exemption in the bill to exclude churches from such a tax, and the bill contains no such exemption.
Show me.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
Unless there is some exception for churches, there is a tax. The chuch is the consumer, and since they are not a business passing the tax on to someone else, they are stuck with the tax bill.
If a church has to resort to bake sales to fund their missions, they are in trouble anyway.And if they have to remit 23% of their take it won't make it any better either, will it.
Here is what I found:
SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS.
`(a) Not-For-Profit Organizations- Dues, contributions, and similar payments to qualified not-for-profit organizations shall not be considered gross payments for taxable property or services for purposes of this subtitle.
`(b) Definition- For purposes of this section, the term `qualified not-for-profit organization' means a not-for-profit organization organized and operated exclusively--
`(1) for religious, charitable, scientific, testing for public safety, literary, or educational purposes;
`(2) as civic leagues or social welfare organizations;
`(3) as labor, agricultural, or horticultural organizations;
`(4) as chambers of commerce, business leagues, or trade associations; or
`(5) as fraternal beneficiary societies, orders, or associations;
no part of the net earnings of which inures to the benefit of any private shareholder or individual.
`(c) Qualification Certificates- Upon application in a form prescribed by the Secretary, the sales tax administering authority shall provide qualification certificates to qualified not-for-profit organizations.
`(d) Taxable Transactions- If a qualified not-for-profit organization provides taxable property or services in connection with contributions, dues, or similar payments to the organization, then it shall be required to treat the provision of said taxable property or services as a purchase taxable pursuant to this subtitle at the fair market value of said taxable property or services.
`(e) Exemptions- Taxable property and services purchased by a qualified not-for-profit organization shall be eligible for the exemptions provided in section 102.
And in Section 2 of definitions we find:
`(12) TAXABLE EMPLOYER-
`(A) IN GENERAL- The term `taxable employer' includes--
`(i) any household employing domestic servants, and
`(ii) any government except for government enterprises (as defined in section 704).
`(B) EXCEPTIONS- The term `taxable employer' does not include any employer which is--
`(i) engaged in a trade or business,
`(ii) a not-for-profit organization (as defined in section 706), or
`(iii) a government enterprise (as defined in section 704).
And further:
`(14) TAXABLE PROPERTY OR SERVICE-
`(A) GENERAL RULE- The term `taxable property or service' means--
`(i) any property (including leaseholds of any term or rents with respect to such property) but excluding--
`(I) intangible property, and
`(II) used property, and
`(ii) any service (including any financial intermediation services as determined by section 801).
`(B) SERVICE- For purposes of subparagraph (A), the term `service'--
`(i) shall include any service performed by an employee for which the employee is paid wages or a salary by a taxable employer, and
`(ii) shall not include any service performed by an employee for which the employee is paid wages or a salary--
`(I) by an employer in the regular course of the employer's trade or business,
`(II) by an employer that is a not-for-profit organization (as defined in section 706),
`(III) by an employer that is a government enterprise (as defined in section 704), and
`(IV) by taxable employers to employees directly providing education and training.
There is. A church is not a "Taxable employer" as defined in the code.
I don't read that in the bill. See my post above as it defines "Taxable employer", "taxable property or service", and "not-for-profit organizations".
Have read most of Linder's rather thick bill. Had several positive thoughts and several negative.
On the positive side, the fact that no tax will be paid on used items would be a tremendous benefit to recycling and saving of resources. A call to Linder's office assured that this even applied to used houses.
A second positive would be the guaranteed up front rebate of the tax up to the poverty level which would give some stability to the very poor.
On the negative side, what is to prevent the very wealthy Kennedys, Kerrys, etc. from taking their untaxed money out of the country and buying homes, cars, land, etc. overseas, thus not paying any tax. This could be fixed by having an export tax on money taken out of the country. For example 23% on any money exported over the poverty level.
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