tag:blogger.com,1999:blog-2426774631968578262.post7571413489234130145..comments2023-11-05T01:50:40.255-08:00Comments on FairTax Blog: SENIOR MOMENTSBobbiehttp://www.blogger.com/profile/17748056511616357923noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2426774631968578262.post-12522404241435312312008-01-05T11:07:00.000-08:002008-01-05T11:07:00.000-08:00Bobbie,Well, Jim certainly has his rose colored gl...Bobbie,<BR/><BR/>Well, Jim certainly has his rose colored glasses on, so here is another point of view from a real senior. <BR/><BR/>Under the Fairtax, prices will rise higher than the increase in my take home pay (pensions) after income tax withholding is eliminated.(I dont have any payroll tax withholding as a retiree). My effective tax rate will be greater, and my purchasing power lower under the Fairtax. My savings will be double taxed. I will be forced to resume paying into the SS Trust funds with my sales tax dollars. Meanwhile, an estimated 30 million workers may pay no net federal tax due to the prebate, yet will still receive their full SS retirement and health care benefits. Finally, my state and local taxes may have to be increased by 25% to pay for the federal sales tax costs. Not a pretty picture?!<BR/><BR/>Jim says that those whose savings are in 401k's /IRA's used great foresight and discipline. I'd suggest it was more a case of pure dumb luck! And for every winner, there is a loser who have after tax savings including the very popular Roth IRA, which would be double taxed under the Fairtax plan.<BR/><BR/>As for estate and gift taxes, you aren't doing the average retiree any favors. A married couple can already gift $10K each to any and all grandchildren, and we have an estate exemption of over $1.2million. Gift and estate taxes are a non issue for most.<BR/><BR/>As for saving more rapidly, I wonder just how that is possible? Take home pay goes up, but prices go up a matching amount, and your standard of living is relatively unchanged. So, where is the extra cash for savings? And, Jim seems to be saying that under the Fairtax, 401K's will disappear? He may well be right if the company matching can no longer be expensed. But if that should happen, everyone would lose the most advantageous savings plan ever devised. A little clarification from Jim might be useful here?<BR/><BR/>Fairtaxers are left with an appeal to seniors for their support based on the forecast of a better world for their grandchildren. And, maybe that will suffice. Or maybe, self interest will override any such public virtue arguments? Stay tuned.Dutchman3https://www.blogger.com/profile/04598625693698270641noreply@blogger.com