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See this website: http://www.fairtax.org/site/PageServer
They propose a 23% tax, exempting up to the federal poverty level
Firstly, the fair tax does not exempt food and medicine. The poor would thus spend a disproportionatly greater percentage of their income when purchasing these items:
Let's look at a popular weekly wage:
$400 a week
-100 for groceries is not unreasonable
-23 for tax
=277 remain
-50 for a car/gas/insurance (this is low I know)
-11.5 for tax
=215.5
-20 a week for medical (insurance/doctor/medicine)
-4.6 for tax
=190.4
-100 a week house payment (if this rate can be found)
-23 for tax
=67.4 left over
So we totall these expenses and get:
332 rounded just for basics, given reasonably low figures
Taking someone who makes 1000 a week then, we can get
1000
-332
=668 remains beyond basics
Where the typical poorer person has paid almost his entire paycheck for basic living, the richer person has paid about a third of his. Of course the richer person will spend some of his remainder, and be taxed on it, but it leaves an intolerable burden on the poorer person.
Now the 'fair' tax wouldn't apply to capital gains (money earning money), not to estates (death tax), and many other areas where typically the most well off would be the only beneficiaries.
Let's look at the distribution of wealth in America and see what else we can find...
From this website: http://www.faculty.fairfield.edu/faculty/hodgson/Courses/so11/stratification/income&wealth.htm
The top 1% of families in the US control 34% of this nation's wealth. The top 10% of families control over 71% of the wealth! The bottom 40% of families control LESS than 1% of this nation's wealth!
By allowing the 'fair' tax to come in play we will see these numbers shift even worse. I encourage everyone who is not in the top 10% of wealthy families to think very seriously before they decide to accept the 'fair' tax.
Look at the second graphic on the webpage, notice the numbers are shifting worse NOW, before the 'fair' tax! The super rich have had it too good for too long! Think of the houses these people are building, requiring incredible amounts of energy and water to maintain, in this day of dwindling supply.
The super rich have a head lock on our nation, controlling centers of wealth and power, and if you think they are using it to further your aims you've lost your mind.
Latest Activity: Aug 18, 2008 at 10:03 AM
I'm going to post this link several times. Sorry for the repeats.
This is one of those complicated but exacting analysis of just the RATE needed under the FairTax to be revenue neutral. Don't read it if you want to stay awake. However, if you're tired of counting sheep at night, keep a copy by your bedside.
And, no. I can't hang with this guy.
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 $50,000
Net tax $6,803 $7,918
Effective tax rate 13.6% 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.
Lets not forget the rebate check.
The FairTax makes the economy much more dynamic and prosperous. Consequently, federal tax revenues grow. This makes it less likely that federal budget pressures require Medicare or Social Security benefit cuts.
http://www.fairtax.org/site/PageServer?p...
BarryCDog,
Can you say anything good about the FairTax without using the sales pitch at www.fairtax.org?
A debating blue print for people who've never won a debate in their lives. That's the .org of your choice.
MD
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