U.S. Congress - H.R.25 Fair Tax Act
H.R.25 - Fair Tax Act
To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. view all titles (3)
All Bill Titles
- Official: To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. as introduced.
- Popular: Fair Tax Act as introduced.
- Short: Fair Tax Act of 2011 as introduced.
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Displaying 91-120 of 163 total comments.
This is not true. The business climate will improve and employment will skyrocket. It’s estimated that trillions of dollars will pour into the U.S. because of the new business climate. More investment capital equals more economic activity, economic growth and yes, more jobs.
Tax preparers, IRS agents, and CPA’s that currently rely on the tax-codes for their income could easily start businesses helping citizens figure out the best ways to manage and invest all the extra money they’ll have due to their full-paychecks coming to them.
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While I see your point Sxeptomaniac, I don’t think it will be as bad as it sounds. Yes, everyone making below $16.35 (~$34,000) for 2010 would’ve seen an increase (if the bill was now law this year) of 8% from what they would’ve had to normally pay (last page @ http://www.irs.gov/pub/irs-pdf/i1040tt.pdf), that’s only if they spend all of their yearly money though. Think about it, the MAX someone would be able to pay in taxes (not including investments, interest, etc) is 23%. Now, if the consumer saves the $4681.2485 they’d be getting back by not having to pay income tax, they’d have $29318.7415 in spendable income. If the customer then saves 10%, they’d have a $26386.86735 in spendable income. They would have to pay $6068.9794905 in taxes @ 23%, and have a savings of $7613.12265. Plus, all consumers are eligible for the $200/month rebate which increases savings to $10,013.12265. Overall, even after paying taxes with savings, the consumer has a positive cash flow of ~$3944.14.
MATH:
(max spendable income below the 25% marginal rate, single – 2010’s tax liability for consumers making below the 25% marginal rate, single – (10% savings of spendable income) x 23%) = new tax liability – (sum of savings)
or
(33999.99 – 4681.2485 – ($29318.7415 × 10%) x 23%) = 6068.9794905 – (4681.2485 + 2931.87415 + 2400) = ~$3944.14
So, the middle class is actually making more money by being fiscally responsible instead of living at their means? really? that’s just crazy!
So the price of everything goes up 23%, but they are supposed to still set aside 10% of their income? Basically, if you’re above the poverty line, the less you make, the more painful this tax would be. The less a person makes, the larger the percentage of their income the necessities take up.
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And if you believe that I’ve got some ocean front property in Arizona for sale, when has a business ever reduced the price of their goods once they’ve been able to sell them at a higher level? The only way prices would go down is if the government forced it down.
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Do you remember when GM introduced “employee pricing”? How long did it take Ford, Chrysler Toyota and other auto manufacturers to match the program?
Do you remember when Wal-Mart introduced $4.00 prescription drugs? How long did it take all the other drug stores to match it? The how long did it take Publix Grocery stores to have antibiotics priced with a $0.00 copay?
It is all part of economics 101. All the stores want their market share of the sales. If one business lowers their price, the others will follow or go even lower!
False. Companies drop their prices all the time. They do so to stay competitive in the free market. Walmart makes a killing with their “Price Rollbacks”. Why? Because they know they can drop the price and still make a considerable profit. So they gain market share. And for Target to stay competitive with Walmart and not lose market share, they have to drop their prices as well.
Not to mention, for the first year a manufacturer is allowed to exempt their existing stock to counteract the higher cost of production. The chapter of the FairTax book discussing the tax cost of products embedded into the price.
Actually, the price of everything would not go up. The price of everything would go DOWN because you’ve eliminated the business tax of 35%. That tax is one that you currently pay, but do not see because it’s built into the price of the goods and services.
FAkk2 put up some great math and you should go and read it..
Another one who follows the precept “Well,I haven’t actually read much about it and really don’t know anything about it but here’s what I think….”
The middle class (well, everyone) would get a prebate which is expected to cover the cost of increases in prices of neccessary items, and with the elimination of the income tax, payroll tax, corporate tax, etc, prices are expected to lower for certain products. in fact, 23% of your money spent on food is expected to go to the government anyway, so eliminate that, insert the fair tax and nothing happens.
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There is no paperwork with The Fairtax. For anybody, ‘rich’ and ‘poor’ alike. And the ‘prebate’ is designed to help families below the poverty level.
Please read the bill before you comment any further. You are making yourself look foolish and spreading lies.
How can we say we can blame millionaires, which is a SMALL, SMALL percentage of the population, but we don’t blame anyone else for their situation in life or where they spend their money? How is blaming the wealthy and expecting them to pay more any different than capitation for being rich? One day, I hope I’m a millionaire, but I know what I do now impacts what I hope to become, if I’m ever lucky enough to become a millionaire (which is easy to do at minimum wage btw, just look up Dave Ramsay).
We can blame the rich because it’s their lobbying and keeping Congress half-deaf to the public will that eroded away at education – and when people are ignorant, they’re also usually stupid. The rich in this country are usually also there through deception, fraud and treating their fellow man like cattle or insects. They aren’t human, they’re lizards, and they are at war to keep the majority from having a voice or a mind.
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What is it going to do to the disabled living on disability? Are we just going to say screw the disabled, when they’re unable to work or make a living like so called “normal people”? Their income would go by the wayside because Social Security would be dismantled as well as all of the Seniors currently living on Social Security Retirement. I see no provisions for these people in this bill, if I’m mistaken please direct me to where it’s located in the bill.
Social programs like Social Security and others are unaffected by this bill. This bill is simply an alternative way to collect the money for the expenses of the federal government. Including for the programs you’re concerned about.
The support or opposition to those programs are a completely separate debate.
Suziegs,
You definitely have a valid question, but I would suggest reading section 904(b)(2),©(2),(d), and (g)(1). This should answer any questions about the disabled/elderly and the support provided for people in that situation.
fakk2, this is the top ten list of lobbyists that I came up with at http://www.toptenlinks.com/cat.php/Society%3AGovernment%3APolitics%3ALobbying+Groups
1. American Association of Retired Persons
2. National Federation of Independent Business
3. American Israel Public Affairs Committee
4. National Rifle Association of America
5. ALF-CIO
6. Association of Trial Lawyers of America
7. Christian Coalition
8. National Right to Life
9. American Medical Association
10. US Chamber of Commerce
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I am all for abolishing the IRS with a flat tax system, but 23%??? Screw that!!!
I would be willing to support up to 10%, very unwilling to support at most 20%.
For many products, the embedded taxes reach up to 23% already, so that would be removed because ALL taxes other than the Fair tax would cease to exist, then the Fair tax would be inserted and the prices would not change. Also, if it wasn’t at 23%, the government would not get equal amounts of tax revenue as it currently does.