I added a picture today of my great grandson, Wyatt. I imagine a lot of you people out there are getting just about as tired as he is. Well, hang in there - Christmas is almost here.
I couldn't resist putting this picture in my blog today. It says so much about why I am doing this. I won't be getting near the benefits that Wyatt will when he starts earning a paycheck, if the FairTax is in place by then. I hope we don't have to wait that long.
I appreciate the open discussions possible in this blog and I appreciate the fact that you are not abusing my blog with name calling and bad words ("bathroom language", as my Dad used to call it). I think we can all agree on one thing - we certainly do need a change in our tax system.
I would just like to see our politicians doing something - anything - of value to us while they are in office. They seem bent on one thing - lining their own pockets and getting on the government pension dole. They don't seem to care about fixing Social Security, Medicare, the Income Tax System, or anything else that benefits their constituents. I think it is time to write some letters and then back it up by going to the polls and voting these do-nothings out of office. They are treading on my freedoms.
Bah, Humbug.
Merry Christmas.
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6 comments:
I went to a FairTax presentation on Monday and one of the questions was would the prebate money count as income for things like food stamps, medicaid, etc. Do you know the answer? Thanks.
AC'
Of course it is income! Just look in your checking account. And you can and will spend it on anything you need. And it will be taxed when you spend it!
Some folks would have you believe that the prebate is just a rebate on taxes paid, but in truth, the prebate is not directly related to how much you spend or how much tax you incur. It is only directly related to family size and the annual poverty level.
The prebate is a cash grant entitlement, provided to everyone who registers, and you can think of it any way you wish. I think of it as a monthly income supplement, others may think of it as a tax rebate, but it doesn't matter. It is a government entitlement authorized by HR25 and will be payable until the law gets changed. So spend it or save it- it's still income!
Dutchman's right, AC. You can spend your pre-bate on anything you want. You can spend it, invest it, save it, etc. You put it in your bank account and nobody will know whether you are spending pre-bate money, welfare money, or good hard-earned money.
That's the nice thing about the FairTax: we won't have to prove to the IRS where every little cent is coming from. The nice thing for America is, everytime someone buys something, ca-ching! FairTax! It's your coice where you spend your money and what for. It gets government out of your life.
Another nice thing - The illegal immigrants, drug dealers, prostitutes, tourists and all the underground business dealers will have to pay the FairTax also - everytime they buy something. They will no longer be getting a free ride.
Merry Christmas!
The Fair Tax would increase taxes on an "average American family" ($43,000 per year, married with two kids) by over $2,000 per year.
This is just if they only take the standard deduction and do not itemize (as they might do if they were buying a home).
Little David,
You are correct if you only consider income taxes. But when you add in payroll taxes, the results change. At $40,000, (don't have $43,000 in my study), total net tax under the Fairtax is $1918, and under the income tax, with payroll taxes included, it is $2914, a $1000 decrease under the Fairtax.
You also might have assumed that the family spent the entire $43,000 on taxable consumption, which is very unlikely? My study assumed that at that level of income, 15% of gross income would not be subject to a sales tax. Such things as savings, installment payments, and state and local sales taxes are not taxed. You can contact me at vanlinda@comcast.net and I'll send you a copy of the effective tax rate study if you are interested.
Cute kid! (;
Dennis
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