Posted on 11/27/2007 6:02:19 AM PST by K-oneTexas
We have to get rid of the prebates.
Aw geez! not this $@!^ again!
a tax on consumption will inhibit consumption which will hurt the overall economy.
a zero-sum cost to the taxpayers is a pipe dream when dealing with the realitiers of washington. Ain’t gonna happen.
Businesses will NOT pass 100% of their savings (not having to pay taxes) onto consumers.
those who consume will pay more. meaning that those who spend more of their paycheck on goods and services will pay more, whilst thosw with higher incomes (super ruch) who spend less a percentage of their income on goods and services.
eliminate the IRS??? Who’s gonna mail them “prebates” to people each and every month?? sounds like a net beauracratic growth to me.
note no taaxes on capital gains - the dems are gonna love that one!
There are a myriad of other issues with the “Fair Tax”, but that one makes it all moot.
Aw geez! not this $@!^ again...and again and again and again......
Fair?? HA!
It’s the ‘you-gotta-live-like-a-hermit tax”
Every household in America will receive a check or a credit to an account at the beginning of every month equal to the amount of FairTax that household would be expected to pay during that month on the basic necessities of life. Poverty figures for various family sizes from the Commerce Department will be used to calculate the size of this "prebate." This guarantees that nobody will have to pay the FairTax on the basic necessities.The Commerce Department? Hasn't Boortz read the bill? Sec. 303 clearly states that the poverty level is determined by the Department of Health and Human Services.
A Hard Look At The Fair Tax (sic)What's the "sic" for Neal? The bill's official short title is "Fair Tax Act of 2007."
The FairTax eliminates all corporate, business and personal federal income taxes, all payroll taxes, capital gains taxes, dividend taxes and estate taxes, and replaces them all with one embedded sales tax on the sale of all goods and services at the retail level.The FairTax would not be "embedded." Sec 510 clearly states "For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase."
The home mortgage interest deduction is of no value whatsoever to someone who does not pay income taxes.
how many people are paying mortgates and not income taxes??? My guess is that if one is too poor tp pay taxes, they are probably too poor to afford a house. Why not KO the housing industry altogether?
People dont contribute to charity in order to get a tax deduction. Who would give away $1000 just to save $350 on their taxes? Somehow that doesnt seem to be a good trade to me.
huh? that's countraindicated - if the tax deductions on charity are so miniscule, why are they even deduc table int the first place unless it is to encourage charity.
If lower tax rates on capital gains encourage investment think what NO taxes on capital gains would do. Thats life under the FairTax.
ayup. the dems are really gonna go for this. the superrich get super richer, and guess who has to make up for the revenue loss due to this exemption. "what's gonna pay for this tax cut for the rich?"
Ditto for dividends.
ditto for favoring the rich at the expense of the middle class/poor.
Then what would an INCOME tax be classified as other than a tax on success? Or even cap gains taxes, for that matter - successful investing is taxed.
Um, that is EXACTLY what we have now!
This guarantees that nobody will have to pay the FairTax on the basic necessities.Not true. The bill determines the "prebate" by multiplying the poverty level by the inclusive rate. The tax on poverty level spending would be the poverty level multiplied by the exclusive rate. The prebate would not guarantee that nobody would have to pay the FairTax on the basic necessities.
Yup...
And that’s what will kill it, even if it had no other flaws...
And how, Neal, are you going to guarantee that that 22% will disappear?
Simply put every person, business or other entity that has any involvement at all in bringing any product or service to the retail marketplace incurs a tax cost arising from that involvement; and every one of these entities will incorporate that tax cost into whatever they charge for their labor, ideas or material goods. All of those tax costs come home to roost in the final retail cost of that product or service, to the average tune of 22 percent. Again, simply put, the FairTax removes those embedded tax costs from the price of all goods and services at the retail level and replaces them with the embedded 23 percent FairTax.Hasn't Boortz learned his lesson about "embedded taxes"? The 22 percent number comes for one study done by Dale Jorgenson. The majority of those "embedded" taxes are personal income and payroll taxes! To get those out of prices workers post-FairTax gross pay would have to equal their pre-FairTax net pay, i.e., their take home pay would not change. This isn't going to happen, thus these "embedded taxes" can't be removed from prices.
1. Enter your total income __________
2. Enter $5000 for single-filer, or $10,000 for married filers _____________
3. Enter your number of dependents times $5000 ____________
4. Add lines 2 and 3. ______________
5. Subtract line 4 from line 1. ________________
6. If line 5 is less than zero, this is your refund __________
7. If line 5 is greater than zero, multiply line 5 by .2 - this is your tax bill __________
And if you keep income tax payroll deductions, then there would be one more line to deal with that.
The true believers won’t be swayed by this one iota. Their love of the IRS and their own personal scam under the current system is more important than a truly equitable system.
The FairTax will replace all payroll taxes. Payroll taxes are quoted as embedded taxes. If you were to quote your entire Social Security tax bill (and that includes your employers so-called contribution,) as an exclusive tax the rate would be 20.5 percent.Uh, no, Neal. The employer portion is not "embedded" and it's already expressed in exclusive terms.
First, it’s about the point of impact. We are used to getting hit with the tax on our paycheck and the only time most Americans (the voters) think about it is tax time. If you pay a very noticeable amount every time you go shopping, well that is not going to be very popular. It’s call psychology, and it’s a factor. It could impact consumerism as well, something "Fair Tax" foes will point out, and it is a big deal in all this.
The second part is equity, and this is the deal breaker right here.
Two identical families with 75,000 in income. We go under the “Fair Tax”.
One family lives and enjoys the trappings of success, because that is what our economy is based on. Nice clothes, cars and the like. We make those things to sell and we buy them as a nation.
The other family buys used, used clothes, used cars and all that. They live like paupers basically.
Who pays more in taxes?
Under the current system all is equitable, all is fair as far as tax burden among peers. Forget everything else about the system as it is, for get the “SQL” crap, just take a look at the burden. That’s what we will be dealing with.
Under “Fair tax” the family who lives well (which is most middle class Americans) will end up with the bulk of the tax burden.
Now you will say (you all do) that it is by choice, that the first family can ‘cut back’ or just deal.
Well let’s look around you, do you see the malls, the merchandise. Do you think the majority of American’s want to cut back? Do you think that would be good for our economy?
You are right, family one has a choice, and I guarantee you that it will be to not support the “Fair Tax”.
Americans will not accept a tax on success, especially one that does not split the burden equally.
There are more than a few other ‘deal breakers’ but that’s the biggie and renders the rest moot.
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