[TheBattman]

No more IRS 1040 forms.... nice.

So - how would the government determine your “first $20k” in spending to be tax free???

[Gorzaloon]

So - how would the government determine your “first $20k” in spending to be tax free???

We already have that "Know Your customer" Bank Thing.

Deposits vs. Debits= You Spent It on goods or services.

Mild sarcasm, of course. I never trusted an "Open Book" policy at a bank.

What about medical biils? I guess they are services. What about mortgages? It looks like a lot of people are not paying them anyway. What isn't a good or service?

Let's ask our Brit friends how the VAT is doing!

[Bigun]

All the answers to your questions can be found by reading ABOUT THE FAIRTAX and the links along the right hand side.

You will soon learn that the FairTax is nothing at all like the European style VAT.

[Man50D]

So - how would the government determine your “first $20k” in spending to be tax free???

One feature of The Fair Tax Act Of 2007 is returning to the people each month taxes paid on necessities up to the poverty level.Mr. Moore is not clear about how he arrived at $20K but I believe he was referring to the prebate. If so his figure is incorrect. A family of four (two adult household) will be returned annually $5,497 per the chart below.

[MrB]

It wouldn’t.
EVERYONE would get a monthly check, totalling for the year to .23 X 20k ($4600).

If you don’t spend 20k in a year, well, you’re getting money, a negative sales tax, so to speak.

And, since (with the simultaneous repeal of the 16th) the gov’t no longer can demand that you disclose your income, they can’t give differing rebates to different income levels.

I’d much prefer this to the intrusiveness of the present system and the EITC (which makes for a NEGATIVE income tax on some).

[MarkL]

So - how would the government determine your “first $20k” in spending to be tax free???

That's where the "prebate" comes in...

Mark