I'm baaaaaaaaaaack!
Ian and Dutchman did such a good job sparring with each other on yesterday's non-blog, I thought I would continue in that vein so you can do your own figuring on how much the FairTax is going to cost you or save you. You can find a FairTax Calculator at www.fairtax.org that will help you out with this project.
With some, it may be a lot, with others, it may be a wash. But the benefits to America and the economy will be a huge winner and you can help take credit for getting America out of debt, leaving a wonderful legacy for your children and grandchildren. Sometimes you have to look at the big picture when figuring the end results.
The end results with the FairTax will be zero debt, a strong Social Security system, a strong medicare system, more jobs, more money free for investments, easier to save for your kids college education, etc. etc. etc........................
It's not just "what's in it for me". It's also "what's good for America", because without a good, strong, solid America, it is too late to worry about "what's in it for me".
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3 comments:
Bobbie,
I admire your overall optimism about the future under the Fairtax.
However, watch out for that Fairtax Calculator--it lies a lot! First, you should note that it isn't designed for us retirees, so it includes payroll taxes under the income tax column. Next, watch out for item #30. Anyone that believes that business costs will drop by 20%-30% hasn't been paying attention. The best you can hope for is 10% and that's optimistic.
In summary, by manually adjusting the report by taking out payroll taxes, and using the 10% pretax cost reduction, for a retiree with $80,000 gross, I'm $3500 better off under current tax law, and my effective tax rate is 11% versus 15% under the Fairtax.
Be careful what you wish for--you may get it?
Fairtax calculator is worse than useless. Its worse than a watch that has stopped -- that's right twice a day. The Fairtax calculator is at best misleading.
Why doesn't the calculator show a place for health care cost? Every dollar in health care cost is taxed.
Why doesnt the calculator show a place for rent? Every dollar of rent is taxed.
Why doesnt the calculator show a place for utilities - heat electricity? Every dollar of utlities is taxed.
Why doesnt the calculator show a place for insurance premiums? Every dollar of car insurance, health insurance, home owners insurance - is taxed.
Think about the person putting this calculator together.... you think they might have left off these huge things as an accident?
I doubt it.
COnsider that some people have 50,000 - 200,000 dollars in health cost. Most of us have a very high spike in our health cost as we age. No where is that cost -- or the tax on it -- reflected in the fairtax calculations. I wonder why.
Is gasoline expense listed in the calculator? Cause every gallon will be taxed -- far higher than now.
And morbidly perhaps - are funerals listed in the calculator? Those have the same high sales tax.
Fairtax has a lot of things to it that its fan's have NO idea of.
All this "effective tax rate" and "inclusion vs exclusion" jargon is silly.
Fairtax is a farce, its not a little off, its preposterous.
Fairtax rate would have to be 60-90%, nothing close to 23. You are just whistling Dixie to do all these figures, using 23%. Its just nonsensical math.
Yes, if Fairtax could be 23%, and you had exemptions or prebates to cover all health care and the poor, maybe.
But Fiartax can not BE 23%. Just like those little pills they sold to use water in your gas tank, did not work.
Fairtax pretends it gets a MAJOR portion of its taxes from the federal government. If that doesn't worry you, it should. THe federal government can't pay its own taxes, thats circular nonsense. Thats a farce.
Fairtax also pretends it will get another huge amount of tax revenue from taxing state and local governments. That too is nonsense -- its possible, unlike trying to tax yourself -- but its still nonsense. The states and local governments don't have a trillion dollars to kick in.
If fairtax can't tax the government to PAY the government (and it can't) then the whole plan is an utter farce. And it is a farce. Because the tax rate would have to be more like 60-90%.
And a 60% sales tax on cancer surgery, new homes, new cars, food, gasoline, utilties, car insurance (yes your car insurance will be fairtaxed) rent etc, is just wacko.
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