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Thread: Fair tax is getting legs...

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    Default Fair tax is getting legs...

    FAIR TAX AND THE 111TH CONGRESS

    By Neal Boortz @ January 8, 2009 8:39 AM Permalink | Comments (15) | TrackBacks (0)

    The FairTax has been introduced into the 111th Congress as H.R. 25. While that's good news in and of itself, here's some better news. The FairTax is being introduced with more co-sponsors than at any previous Congress. Now why do you think this is? It's because of you .. those of you who are undying in your support of this badly needed tax reform proposal.
    Now ... since PEBO is making a big time speech today on the economy, here's a little reminder about the FairTax. PEBO is considering a one trillion dollar stimulus bill. Well, what about a $13 trillion dollar stimulus? Do you think that would work? Well $13 trillion is the best estimate of the amount of money that is floating around in overseas investments, and this is money that belongs to American citizens and corporations. Why is this money working overseas instead of here in this country? Simple: To escape our high tax burdens. Get rid of the income tax and replace it with the FairTax and watch this $13 trillion start to come home and work in our economy .. work producing jobs and expanding domestic wealth. The problem, of course, is the FairTax takes power away from politicians. Politicians will approve almost any scheme for economic recovery - any scheme except one that diminishes their power.

    http://boortz.com/nealz_nuze/index.html

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    Ain't gonna happen. The politicians are not going to give up there most powerful weapon...controlling you and your money.

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    Mergie Master is offline Dedicated Tamiecide Practitioner
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    Quote Originally Posted by Downeast View Post
    Ain't gonna happen. The politicians are not going to give up there most powerful weapon...controlling you and your money.
    Unfortunately I agree.
    The Elites don't fear the tall nails, government possesses both the will and the means to crush those folks. What the Elites do fear (or should fear) are the quiet men and women, with low profiles, hard hearts, long memories, and detailed target folders for action as they choose.

    "I here repeat, & would willingly proclaim, my unmitigated hatred to Yankee rule—to all political, social and business connections with Yankees, & to the perfidious, malignant, & vile Yankee race."

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    Do you want to know what your paycheck would look like with the fairtax in place????

    There is a way to do it. All you have to do is change the number of dependents on your W-4 tax form you give to your employer when you are hired. change it 18 or so dependents and there are no federal taxes taken out of your paycheck.

    With the fairtax in place that would be your normal take home pay.

    I am no way encouraging this nor am I a CPA so this is a hypothetical situation. If you choose to do so you are doing under your own free will and I will not be held responsible for anything you do from here on out.

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    Quote Originally Posted by Downeast View Post
    Ain't gonna happen...
    The exact pessimistic attitude I spend a lot of time trying to change. The quicker the public realizes that we do still have a little power left and let these people know what is important to us, the quicker it will happen.

    We've sat on our fat asses and rolled along in our suburban war wagons living our comfortable lives while all along they keep taking and taking and somehow they have you convinced that there is nothing you can do about it.

    All of my local, state and national reps know how I feel about it and how I'm going to vote. Do yours? Have you called, written or discussed issues important to you with your reps? Flood their offices with phone calls and letters and if they baulk, send 'em packing next election for someone else.

    If everyone who agreed with it voted for those who support it, it would happen.

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    Right now the bottom 40% of taxpayers pay no taxes. Something like 85% of the total tax burden is shouldered by the top 2 or 3% of the wealthiest taxpayers. If the tax burden was fair, wouldn't my taxes go up? (since I'm not in the top 2 or 3%)

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    Quote Originally Posted by Palmetto Bug View Post
    Right now the bottom 40% of taxpayers pay no taxes. Something like 85% of the total tax burden is shouldered by the top 2 or 3% of the wealthiest taxpayers. If the tax burden was fair, wouldn't my taxes go up? (since I'm not in the top 2 or 3%)

    Nope. www.fairtax.org

    http://www.fairtax.org/site/PageServ...name=about_faq

    Your tax rate increases as your spending increases on non essential items.

    Is it fair for rich people to get the exact same FairTax prebate from the federal government as the poorest person in America?

    Let’s look at a billionaire under the FairTax -- if he spends $10,000,000 dollars he pays a tax of $2,300,000 and gets a prebate of $4,697 (assuming he is married and has no children). His effective tax rate as a percent of spending is 22.95 percent.

    Now, let’s look at a middle-income married couple with no children under the FairTax -- if they spend $50,000, they pay $6,803 net of their prebate for an effective tax rate of 13.6 percent. The effective tax rate increases as spending increases, but never exceeds 23 percent!

    Figure 4: Comparison of effective tax rates: FairTax, income tax

    FairTax Current tax Expenditures = income $50,000$50,000Net tax $6,803$7,918Effective tax rate13.6%15.8%
    In contrast, if this same couple earns $50,000 in wages today under the current tax system, they pay $4,093 in income taxes and $3,825 in payroll taxes for a total of $7,918 in taxes (15.8 percent) -- a tax burden 14.1 percent higher than under the FairTax. In addition, their employer pays another $3,825 in payroll taxes. Most economists agree that the employer payroll tax is actually borne by employees in the form of lower wages. Looked at this way, this couple is paying $11,743 (23.5 percent) in taxes today, which doesn’t even include the hidden taxes they pay every time they make a purchase.

    Finally, let’s look at a low-income couple that spends at the poverty level under the FairTax -- they pay no net FairTax at all. Today, under the income tax system, they not only pay 15 percent in payroll taxes, but they also pay hidden taxes -- arising from corporate taxes, private sector compliance costs, and payroll taxes passed on to consumers and embedded in the price of everything they buy.

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