Posted on 08/28/2007 4:39:18 PM PDT by Bigun
Your whole blurb is so full of errors, one hardly knows where to begin.
The Fair tax will have many more “eligible” families than SSA to distribute monthly checks to
"eligible?" If you breath, you are "eligible" - whether you make 20K a year or 20million.
the Prebate is based SOLELY on the number of people in the household. That is ALL that is reported.
You report NO income, no place of employment, nada. Every household gets a prebate calibrated solely on the number of people in the house - said prebate to offset the tax for the necessities: food, clothing, etc - We wont be out any money for the sales tax until after that living level has been passed...and in addition, we'll have much more money too spend as not one thin dime will be deducted from paychecks.
In addition, anything bought secondhand, ANYTHING, will NOT be taxed...including a used car or 'used' house.
Sure, the millionaires don't like it. They will finally be paying their FAIR share - no loopholes. And the tax lawyers, the tax accountants and the tens of thousands now employed by the IRS will scream into the night against the FAIR TAX.
All you one-issue immigration folk should love the FAIR TAX - illegals wont get a prebate check but will be paying the sales tax right from the first dollar - ditto the drug czars, etc.
So, is it that you just haven't really read/understood the FAIR TAX bill or you fall into a category like one of the above?
It seems to me that the fair tax has to raise as much or more money than the current income tax system does. So the question is, who will benefit and who will get slammed?
Right now I pay a 15% tax on my investment profits but under the Fair Tax plan I will pay 30% up front for the security and then hope for a 10% gain each year. So for an average investment it will take me 4 to 5 years to break even, if the stock does well? That sounds like a prescription for disaster. All new investing will immediately cease and the Great Depression will look like a time of great prosperity by comparison.
GG. Not this again.
READ THE BILL
To clarify your objections:
Religious organizations aren’t “consumers” so they wouldn’t pay the FairTax any more than any other business would. The pretax costs for houses would go down (not by a full 23%, but by some amount) so you wouldn’t be increasing the overall price 30%; furthermore, the tax would only apply to new housing. Existing housing would go up in value as a result of the tax premium on new housing (thus benefitting current homeowners), but again, not by the full amount of the FairTax, so you end up with slightly higher home prices, which can be paid with higher incomes. And medical expenses are taxed now, in the sense that they have embedded taxes built into them and they are paid (for the most part) with post-income and payroll tax dollars.
As you already understand, any exemptions open the door to the same type of funny business and class warfare the politicians play today with all our current taxes. That’s why the only politicians who get my support (and the support of the other FairTaxers, presumably) are those who support the FairTax as written, without exemptions.
Plus, if you make so much money that it puts you out of reach of any prebate, rebate, or whatever you want to call it, you wouldn’t have to file anything.
Only those who think they are eligible will have to apply to whatever they call what takes over the offices of the The FTRB, (Flat tax rebate brouhaha)
Let's not lose sight of the fact that Mr. Will is correct about the transaction details: If a retail transaction for a house occurred and the sale price was $1,000,000, then the buyer would have to pay $298,700 to the federal government for the FairTax on that transaction.
If the prebate was implemented as a debit card that reduced the tax amounts up to the poverty level as the purchases were made.
Depends on how much you spend vs how much you DON'T spend. Why would you have to pay anything on investment profits? You pay only when you spend them.
The 'fair' tax is a joke. A recent writeup in the WSJ put it where it belongs. However, the plus is it will create a whole new society that doesn't report sales and/or purchases to the government at all.
the FAIR TAX proposal didn't just fall from the sky = it's been in the works for years.
The studies show that there will actually be MORE money going to Washington, what with the illegals, drug monies, (who wont get a offset prebate and WILL pay taxes, finally, on every dime they spend.
The studies and calculations have been done. When in doubt, read up on a thing rather than just assume.
OMG! Good thing nothing like that happens now..../s
A flat tax would be much better than the system we have now. The only ones who don't like it are the ones who steal your tax dollars through crooked politicians.
All new investing will immediately cease and the Great Depression will look like a time of great prosperity by comparison.
************************
You will not pay a sales tax on stocks or bonds (you will however pay 23% on that new BMW M3 you buy with the profits),, with a 0% corporate sales tax rate all the companies that went offshore with a HQ in the Caymans and such will come back to the US, with workers receiving their FULL paycheck and with the freedom from tax bookkeeping I expect huge and prolonged increases in GDP growth; furthermore to compete with the US it is very likely that other nations will adopt the same or similar plans ... a rising tide lifts all ships.
Sadly enough apparently most of us want to be strangled and pay for it to boot.
Let’s tax at corporate rates all non profit organizations that have positive cash flows or capital gains in excess of current operating expenses. Between the universities and major charities that should cover the uninsureds and welfare.
The studies show that there will actually be MORE money going to Washington,....The studies and calculations have been done.So you have a link to the study or studies "that shows there will actually be MORE money going to Washington"?
The most recent study I've seen, by the Fairtax economist Kotlikoff, says the 23% rate isn't quite enough...It also says there wouldn't be 100% paychecks...at least not in the Fairtax study.
The write-up was by Bill Bartlett who has railed against the FairTax for years - most of his protests are answered in the "rebuttals" section on the FairTax website.
One of Bartlett's claims is that the FairTax was created by Scientologists. That is a flat out lie.
What kind of “securities” are you buying that are considered new end-user goods and services? Stocks, bonds, etc. wouldn’t be taxed under the FairTax, and neither would capital gains from their appreciation.
Once again, if you breath, you are "eligible" for the prebate which is calibrated SOLELY on the number of people in the household - and that is all you have to report.
The prebate goes to you whether you make 20K or 20 million. It's calibrated to cover the sales tax on amount of money spent for food, clothing, and other necessities up to a predetermined poverty level.
After that, how much one pays out in sales tax is pretty much up to them. You want a new yacht? Pay the tax. You want a secondhand boat/car/existent home = NO TAX. Repeat after me: NO TAX on any secondhand purchases.
The FAIR TAX is a consumption tax. The prebate ckeck will cover the taxes for necessities. Thereafter, it up the consumer what taxes they pay.
This means the millionaires will actually be paying their FAIR SHARE - no loopholes.
The illegals wont get the prebate check and will be paying the tax from dollar one - gotta love it. Ditto the drug trafficers etc.
Sound pretty dam* FAIR to me.
And the freedom of no KGB/IRS - how can anyone not want that?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.