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.
Persons in Family or Household |
48 Contiguous States and D.C. |
Alaska | Hawaii |
---|---|---|---|
1 | $10,210 | $12,770 | $11,750 |
2 | 13,690 | 17,120 | 15,750 |
3 | 17,170 | 21,470 | 19,750 |
4 | 20,650 | 25,820 | 23,750 |
5 | 24,130 | 30,170 | 27,750 |
6 | 27,610 | 34,520 | 31,750 |
7 | 31,090 | 38,870 | 35,750 |
8 | 34,570 | 43,220 | 39,750 |
For each additional person, add |
3,480 | 4,350 | 4,000 |
SOURCE: Federal Register, Vol. 72, No. 15, January 24, 2007, pp. 31473148
Also, the Prebate is a portion annually, Therefore if 2007 has a prebate it would be:
Source: Frequently Asked Questions - Answers - How does the prebate work?
Please use these table, official tables from HHS and The FairTax. org to apply tour calculation. As I see the tables, if 2007 were an actual year under the FairTax:
Let's get one thing straight here, as I said (just in the paragraph above) when talking about an Income Tax or a Consumption Tax we should not mix terminology ... and you are doing just that. Some givens, some fact(s):
By their very being thay are different. Lets talk apples to apples. Get off the inclusive and exclusive. Don't mix termonology. Do you do it on your yob? Does your a mechanic, talk like a nuclear physist.? Does a structural engineer talk like a oil well roustabout? How many mix differnt industries jargon on a regular basis. Why here? Do you go around every day and purchase an item pay its cost and the added sales tax at the store and talk/compare of it it some way to the income tax you pay every April?
Approximate all you want inclusive to exclusive but remember it does one thing for people ... confuses them. Thirty years a a tax collector and tax auditor have proven this to me ... you must be honest when talking with people regarding their tax and how it effects them. You can make the comparison but at the end of the day a sales tax is a sales tax and can never be an income tax.
Thoughts: Are we better off with all the exemptions in an income tax, various stratafacations of rates, government receiving its 'share' before you receive yours, large bureacracy, massive convoluted tax code ... or ... no exemptions, everyone taxed at same rate, government not getting its 'share' until you decide to consume goods or services, smaller bureacracy, simpler tax code.