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Lets talk about the Fair Tax...

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http://www.fairtax.org/site/PageServer

Well Kurb, WTF is a Fair Tax ?

The FairTax is a single-rate, federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A prebate makes the effective rate progressive

he FairTax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.

Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% and equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated.

Oh, ok. Well WTF is a Prebate?!

Under the FairTax, all Americans consume what they see as their necessities of life free of tax. While permitting no exemptions, the FairTax (HR25/S13) provides a monthly universal prebate to ensure that each family unit can consume tax free at or beyond the poverty level, with the overall effect of making the FairTax progressive in application. There is no marriage penalty as the couple gets twice the amount that a single adult receives.

While everyone pays the same tax rate at the cash register, the prebate results in effective tax rates (annual taxes paid divided by annual spending) that increase as the level of spending increases a progressive tax rate structure. For example, a person spending at the poverty level has a 0% effective tax rate, whereas someone spending at twice the poverty level has an effective tax rate of 11.5%, and so on.

prebatefigure1.png

prebatefigure2.png

But Kurb, my (liberaltard/conservatard) sources say it will hurt the poor/economy...

Well that is covered here.

How does the FairTax protect low-income families and individuals and retirees on fixed incomes?

Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today.

Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.

In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free.

Other FAQ's

http://www.fairtax.o...pagename=FAQs#3

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Posted · Report post

My biggest concern is the biggest thing the Fair Tax has going for it is less red tape, but the rebates would end up just as convoluted as tax exemptions are now in a matter of years.

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Posted · Report post

My biggest concern is the biggest thing the Fair Tax has going for it is less red tape, but the rebates would end up just as convoluted as tax exemptions are now in a matter of years.

My concerns are similar.

For it to work, it can't be tinkered with.

First damn thing I see the .gov doing is allowing bigger "prebates" to certain groups to buy votes and adjusting the National Sales tax upwards.

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Posted · Report post

For it to work, it can't be tinkered with.

Then it won't work... no way congress won't tinker with it, even if you could get them to pass it in the first place.

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Posted · Report post

Then it won't work... no way congress won't tinker with it, even if you could get them to pass it in the first place.

That's why when it's rewritten, it should be made into an amendment so that states have a say in this due to the feds needing the states to help in getting the revenue. Amendments are hard to pass...remove...or amend later.

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My wife and I pay over 20% of our pre-tax income to childcare.

Doing the math, it seems like the "consumption" tax on this item alone will end up being more than we'll pay in net federal income taxes this year.

And somehow I doubt it'll be considered a "necessity" and therefore exempt.

What say you.

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Since everything seems to hinge around how much money is spent instead of how much is earned, how do you track individual or household spending?

It seems to indicate that I would need to account for all of my spending to earn a prebate.

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My wife and I pay over 20% of our pre-tax income to childcare.

Doing the math, it seems like the "consumption" tax on this item alone will end up being more than we'll pay in net federal income taxes this year.

And somehow I doubt it'll be considered a "necessity" and therefore exempt.

What say you.

https://www.google.com/search?q=nuvaring+birth+control&rlz=1C1GGGE___US509US509&aq=1&oq=nuvea+ring+&aqs=chrome.2.57j0l3.12565&sourceid=chrome&ie=UTF-8#hl=en&tbo=d&rlz=1C1GGGE___US509US509&sclient=psy-ab&q=birth+control+pills&oq=Birth+C&gs_l=serp.1.1.0l4.11480.13146.0.14826.7.6.0.1.1.0.112.548.4j2.6.0.les%3B..0.0...1c.1.SlQlfyxlX08&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&bvm=bv.41248874,d.eWU&fp=e5351287a4c2a4a0&biw=1024&bih=667

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Posted · Report post

:(

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Posted · Report post

No thanks.

I don't want the burden shifted to the middle class.

@Mickelson and the WSJ:

tumblr_mexpafJ5851rouyxzo1_500.gif

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Posted · Report post

No thanks.

I don't want the burden shifted to the middle class.

@Mickelson and the WSJ:

tumblr_mexpafJ5851rouyxzo1_500.gif

Explain

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Posted · Report post

i'm all for simplifying everything. the fairtax proposes some briefly-tempting things like simplicity and "fairness".

the transition would be crippling(cost and lost jobs) that wouldn't be worth it.

and shifting the burden by having a glorified consumption tax most def affects the middle income and poor bracket the most. the fairtax FAQ mentions no income tax but they will get it one way or another.

/liberaltard rant

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