The FairTax Thread: Discussion Only

[VampElvis]

A couple of retorts come to mind for further discussion. But for now my studies call. Look for some thoughts over the next few days.

 

[SuBe]

No problem.

In the mean time, watch this video:

 

[Malice]

I am loving seeing all the FairTax signs in the coverage of the tea parties

 

[SuBe]

I was surprised at all the FairTax Supporters, or people that said they heard of it and are interested. I must have passed out hundreds of flyers.

These Tea Parties, they argue the point that we have problems. The FairTax, offers solutions.

 

[Hush]

Im a believer SuBe.

 

[SuBe]

Thanks Hush! Have you written your Congressman?

Let me know if you need help finding out who your congressman is.

 

[Hush]

I've written, called, attempted to track down. All i get is snarky remarks from there interns, whom i then must promptly tell how illogical they are.

 

[SuBe]

Have you contacted your local FairTax Group? http://www.fairtax.org/site/PageServer?pagename=grassroots_leader_MN

You can find other ways to help!

 

[Malice]

where are you located Hush?

 

[Hush]

Saint Louis, Missouri. Home of Mcaskil (sp?) ugh. My true dream is to be a Congressman, im an average guy but thats what makes America great. Yeah my primary focus would be at least to get rid of the Death tax and Personal Property taxes in at least Missouri.

 

[Paradyme]

Saint Louis, Missouri. Home of Mcaskil (sp?) ugh. My true dream is to be a Congressman, im an average guy but thats what makes America great. Yeah my primary focus would be at least to get rid of the Death tax and Personal Property taxes in at least Missouri.

I'm in Missouri I'll vote for you. Especially if you promote the FairTax.

 

[Hush]

Be in a couple of years, im only 20 but i think it matters to put focus on it now.

 

[SuBe]

Missorui State House Votes to Let People have Say on Fair Tax Measure

http://www.americansforprosperity.o...se-votes-let-people-have-say-fair-tax-measure

 

[Paradyme]

Sweet action. I'm all over this.

 

[SuBe]

I would recommend talking your Local FairTax Groups and start a Voter Drive. You have to get people educated about it, this is a Great Step!

 

[Paradyme]

House gives final approval to 'fair tax' amendment

Jefferson City -- The Missouri House gave final approval Thursday to a proposed constitutional amendment to abolish the state income tax and replace it with a "fair tax" based on consumption.

The proposal would raise the state sales tax from 4.225 percent to 5.11 percent and eliminate the 6 percent personal income tax and 6.25 percent corporate income tax on business earnings. Estate taxes would remain on the books.

The tax structure is known as a fair tax because it taxes people based on their spending and gets rid of all exemptions, deductions and credits carved in the tax code -- often to the benefit of special interests.

But critics, including some Republicans, said the legislation is flawed because it would levy taxes on things that aren't taxed now, such as home purchases, food and prescription drugs.

"The way it's written, it's not a 'fair tax,'" said Rep. Dennis Wood, R-Kimberling City, who voted "present."

The resolution passed 90-65, with seven members absent and Wood casting the only "present" vote. Mostly Republicans supported the measure, which requires Senate approval before it can be placed on the 2010 ballot.

"I'm not just a 'yes sir' man. I think for myself. I think this is wrong," Wood said of his choice to effectively sit out the vote.

Wood said he supports replacing income taxes with a flat sales tax, but said the current proposal would place an unfair burden on senior citizens in his Stone and Taney county district.

Rep. Ed Emery, R-Lamar, is sponsoring the resolution and argued that it would not impact state tax revenue while spurring job growth through the elimination of corporate income taxes.

"It will catch the cheaters and the illegals because they'll be paying taxes, where they aren't now," Emery argued Tuesday on the House floor during initial debate.

Democrats criticized the fair tax plan as regressive, saying it would be a burden on the working poor, and people who often pay little to no income tax to begin with. Democrats also took exception with the fact the new sales tax would not apply to corporations when they're purchasing goods and services from other businesses.

"If I'm an individual, I don't get the same tax relief that a corporation does. That doesn't seem fair," House Democratic Leader Paul LeVota said Thursday during final debate.

To offset taxing basic necessities, Emery's proposal would create the distribution of a monthly tax rebate check to cover the cost of any taxes incurred up to the federal poverty level, which is $26,000 for a family of four.

"I think this is the most family-friendly way to gather revenues that I've ever seen," Emery said, noting people would have more money in their paycheck without a state income tax deduction.

Democrats from St. Louis and Kansas City argued on the House floor that people in their districts living along state borders would cross into Illinois and Kansas to purchase goods because those states would have lower sales taxes.

Emery predicted just the opposite would happen and that neighboring states would adopt a similar tax code to compete if Missouri changed its system.

"They're the ones that are going to have to scramble to figure out how they're going to compete with a state with no income tax," Emery said on the House floor.

If approved by the Senate and voters, the change in tax structure would begin on Jan. 1, 2012.

Rep. Eric Burlison, R-Springfield, spoke Thursday in favor of the bill on the House floor.

He cited a recent report by the American Legislative Exchange Council that noted a consumption-based sales tax system fuels economic growth.

"From the evidence that we're seeing, those states that have a sales tax- only system do attract people" and businesses, Burlison said.

http://www.news-leader.com/article/20090417/NEWS06/304170009/1007/NEWS01

 

[SuBe]

If you couldn't be at the FairTax Rallies, here is what you missed.

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

 

[BlackLantern]

Democrats criticized the fair tax plan as regressive, saying it would be a burden on the working poor, and people who often pay little to no income tax to begin with. Democrats also took exception with the fact the new sales tax would not apply to corporations when they're purchasing goods and services from other businesses.

This is what I don't get....I thought this is supposed to tax anything anyone buys...period.

 

[SuBe]

This is what I don't get....I thought this is supposed to tax anything anyone buys...period.

It is, and the Answer is this:

To offset taxing basic necessities, Emery's proposal would create the distribution of a monthly tax rebate check to cover the cost of any taxes incurred up to the federal poverty level, which is $26,000 for a family of four.

 

[BlackLantern]

What would the amount of the rebate be? or how is that determined? it seems like an OK proposal

 

[SuBe]

There is a Seperate Department called the Department of Health and Human Services. I don't know if Missouri would call it something different, but they already collect information and every quarter they submit a report to Congress that deterimes ALL kinds of information. It Collects stuff like Average Income, Higest, Lowest, blah blah blah. Basically, one part of that Report is "What is the Poverty Level". From that Poverty Level, they can detirmine what the Taxes are ON regular Purchases on the Poverty Level.

The National Poverty Level is $10400 per person (as determined by DHHS). So, the Prebate is 23% of that $10400. So, once a month Citizens would receive a Prebate into their Bank Accounts or by Check of the Taxes on up to the Poverty Level divided by 12 (X=(Y*0.23)/12).

That Prebate is based on Family Size, not income.

I don't know what their State's Prebate level would be, but it should be somewhere around there, but lower than the @$199 a month.

For a great video on the full explaination of the Fairtax, watch this:

 

[BlackLantern]

so if I buy a years worth of stuff and then spend no money the rest of the year....how does that figure in with the FairTax? and what about utilities (light bill, cable bill)...how are those worked out?

 

[SuBe]

Are you buying the Years worth of stuff before or after the FairTax?

Utilities: You would be paying Taxes under the FairTax as a Retail Service. You do now. They increase the Price because they have to pay taxes for those goods that they send you. They have to increase the prices of the Utilities to cover their Taxes on Employment and Payroll, etc. Yes, you probably will be paying more taxes on the Utilities after the FairTax, but you will be paying Less in other places and you still receive 100% of your paycheck. I'm trying to find more information online as I've never come across this question before, so I don't have ALL the answers on this one.

 

[BlackLantern]

What if I travel outside of the US and buy all my goods??

 

[SuBe]

You will be buying it at a more competitive rate. The US made Goods will be 23% less then add the Duties, Shipping Costs, Margins, and Foreign Taxes, you might be paying exactly the same or more or less. It depends on the country.

But, that is the thing, under our Current Tax Code, Embedded Taxes follow the American Products overseas. THEN they have the foreign taxes put in (duties, etc). Under the FairTax, that American Made Goods are sold without the Embedded Corporate Taxes, so it is more competitive on the World Market. Sending money back to the US.