The Fair Tax (H.R. 25, S. 13)

[BigPete]

Here is an honest question Rob. Under the new Fair Tax (all federal taxes collected via sales tax) do you continue to have a seperate State driven sales tax as well? Is the Federal sales tax just an add on for retail goods? How do you differentiate point of sale from raw materials and wholesale and end user purchases?

 

[jaxhawksfan]

Here is an honest question Rob. Under the new Fair Tax (all federal taxes collected via sales tax) do you continue to have a seperate State driven sales tax as well? Is the Federal sales tax just an add on for retail goods? How do you differentiate point of sale from raw materials and wholesale and end user purchases?

No state is required to repeal its income tax or piggyback its sales tax on the federal tax. All states have the opportunity to collect the FairTax; states will find it beneficial to conform their sales tax to the federal tax. Most states will probably choose to conform. It makes the administrative costs of businesses in that state much lower. The state is paid a one-quarter of one percent fee by the federal government to collect the tax. For states that already collect a sales tax, this fee proves generous. A state can choose not to collect the federal sales tax, and either outsource the collection to another state, or opt to have the federal government collect it directly. If a state chooses to conform to the federal tax base, they will raise the same amount of state sales tax with a lower tax rate -- in some cases more than 50 percent lower -- since the FairTax base is broader than their current tax base. States may also consider the reduction or elimination of property taxes by keeping their sales tax rate at or near where it is currently. Finally, conforming states that are part of the FairTax system will find collection of sales tax on Internet and mail-order retail sales greatly simplified.



Here is the link with some good information:



http://www.fairtax.org/site/PageServer?pagename=about_faq_answers

 

[BigPete]

What goods or services are taxed at the point of sale to the end consumer? Most states have seperate categories and allow different rates depending on the items in that category. Groceries and prescription drugs are certain items that have different rates in some states.

 

[jaxhawksfan]

There the Federal tax is concerned.....you pay taxes on ALL things at the register. No exemptions. No room for someone to play favorites. However, keep in mind that you are being paid by the govt for the taxes on your neccessities at the beginning of each month. Really, read the link I provided.

 

[jaxhawksfan]

Another dose of Fair Tax information from the common man:



In Victor Reilly's letter of Feb. 20, "We need a fairer tax," it was unclear what Reilly considers fair. Recalling his previous letters, I assume he wants the wealthy to pay their fair share, which is liberal-speak for "as much as can be squeezed out of (them)."

I believe our current tax isn't fair because it's neither simple nor transparent. Most of us have no idea what we owe until we spend a week accumulating receipts, receive all year-end statements, buy Turbo Tax, and start plugging numbers into the computer. Wouldn't it be nice to know (throughout the year) what it costs us to fund the federal government? I support the fair tax, which eliminates all income-based taxes and generates revenue from a consumption tax on new goods and services. While not perfect, it's a lot more fair than schemes that tweak tax codes by the political party in control, re-select winners and losers, buy votes from sub-groups, while adding tax complexity. The fair tax doesn't punish earnings, savings, investments or wealth. Instead it tends to reward responsible behaviors like saving, investing, re-purposing, buying used items, growing food, etc. There would be no advantage to hiding income in foreign banks, building products in low taxation countries or hiring a herd of lawyers to find loopholes in the latest tax laws. Consider the following analogy:







Imagine a speed limit on Whiskey Road that isn't posted, varies according to who's driving, allows higher speeds for newer vehicles, fluctuates according to who's in charge, etc. This is our tax code. It's not simple, it's not transparent, and it rewards or punishes behaviors unequally (and politically). As with most everything in life including traffic laws and taxation - simpler is better (and fairer).

Richard Eichler

 

[LordKOTL]

I have a better idea when it comes to "fair tax" The amount a person/corporation is taxed, whatever that value is, remains constant. In other words, the Government tax revenue is a simple, solid amount, like say $1T/year.



The government must make due on that much money, and if it can't it has to cut some programs or salaries, starting with elected officials. If they want to give handouts fine, but they cannot tax anyone or anything to make it more than the set revenue number.



If all of us of the declining middle class have to make due and decide what's important with a fixed income, then the government should as well.



Oh, and start taxing religious organizations.

 

[jaxhawksfan]

Wouldn't hear any arguments from me about any of the above.

 

[jaxhawksfan]

If anyone gets up early:



ALERT! FAIRTAX ON CNBC



Tune in Friday morning, March 16, to watch FairTax Co-Founders Bob McNair and Leo Linbeck Jr. discuss the FairTax Plan on CNBC's “Squawk Box” program.

The FairTax segment is scheduled to begin at 8:10am eastern time zone, and will last for approximately 30 minutes.

Use your zip code to find your local CNBC channel here and invite your friends to watch the show by joining the Facebook event here!

The FairTax legislation has the most co-sponsors of any tax reform plan in the U.S. House, and this national media event will further support our growing grassroots movement!

Cynthia Canevaro

National Campaign Manager