CLARIFICATION OF THE PREBATE – CORRECTED!

Well, I screwed up yesterday, so this is eat-crow day and correct my mistakes. First of all, I got the Prebate figures wrong. I started looking at my white paper, which had the 2007 chart of prebates. Then I thought I had better play it safe and go straight to the FairTax Bill. Well, that bill had 2005 charts in it, since that’s when it was written, and I didn’t notice the date change until “Dutchman” pointed out the discrepancies to me. Thank you, sir.

That got us wondering about my assumption that a parent or grandparent living with the couple and 2-3 children would be considered a dependent (or child). Bonnie, (head of the FairTax volunteers in my area, called down to the FairTax headquarters and this is how it works:

If you are 18 or older, living at home, going to college or working, you would get a prebate of a single person, or $196/mth, based on 2007 charts.

If you have 3 adults and 2 kids in a household, you would receive a prebate of $525/mth for the couple and 2 kids, PLUS the 3rd adult would receive a prebate based on a single person, or $196/mth, based on 2007 charts.

If you have 4 adults and 2 kids in a household, you would receive a prebate of $525/mth for the couple and 2 kids, PLUS the 3rd & 4th adult (if a couple) would receive $391. If the 3rd & 4th adult were not married, they would receive $196/mth each.

Bonnie also asked whether a person could receive a rebate at a P.O. Box number. The answer is yes, as long as that person is a legal citizen, has a social security number and is not registered at another address. The prebate is tied to the SS#, wherever it resides. I presume that would include the homeless, as long as they were able to get a P.O. Box #, could prove their citizenship and had a SS#.

As for “Dutchman” asking about the prebate status of 100 orphans in an orphan facility, I would think that orphan facility would be considered a “charity” or a “non-profit business” and would be handled as such. But that’s just my opinion. Anybody else out there have one? We welcome your discussion.