SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(d) Liability for Tax-
`(1) IN GENERAL- The person using or consuming taxable property or services in the United States is liable for the tax imposed by this section, except as provided in paragraph (2) of this subsection.
`(2) EXCEPTION WHERE TAX PAID TO SELLER-A person using or consuming a taxable property or service in the United States is not liable for the tax imposed by this section if the person pays the tax to a person selling the taxable property or service and receives from such person a purchaser's receipt within the meaning of section 510.
Also see:
`(f) Barter Transactions- If gross payment for taxable property or services is made in other than money, then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased
`(a) In General- Any person liable to collect and remit taxes pursuant to section 103(a) who is engaged in a trade or business shall register as a seller with the sales tax administering authority administering the taxes imposed by this subtitle.
Mary and Joe Sixpack subject to monthly reports, and monthly fairtax returns.
`SEC. 501. MONTHLY REPORTS AND PAYMENTS.
`(a) Tax Reports and Filing Dates-
`(1) IN GENERAL- On or before the 15th day of each month, each person who
Is--
`(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
`(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.
Bottom line is, the alleged fairtax is a proposed massive expansion of what Congress may tax while it keeps alive Congress’ power to lay and collect taxes calculated from profits, gains, salaries and other incomes.
JWK
I yield your point, John. Under the FairTax, Joe and Mary Sixpack will have to start collecting the FairTax and filing tax returns.
Given your point of view, that is a bad thing.
FRom my point of view, it is a good thing, because it is illegal under the present system, and will be illegal under the FairTax system, for Joe and Mary Sixpack to work under the table for cash in the Black Market economy.
Several benefits will accrue to Joe and Mary: 1.) They will not have to file annual federal and state tax returns ever again under the FairTax; 2.) Until the SS and Medicare systems are changed (as I believe they should be), Joe and Mary’s business income will increase their SS benefits; 3.) They will be compensated for their administrative burden, and; 4.) They will not be breaking the law.
On the whole, John, the benefits of the FairTax both for America and Joe and Mary Sixpack far, far outweigh the drawbacks.
There is no perfect system of taxation.
FairTax is far better than the present system, and that is the objective — a fairer, simpler, less costly system of taxation which taxes every American at the same rate and restores a measure of FReedom and Liberty to all.