Reference the letter, "Fairness? The well-off should pay more," by Harold Szerlip of Martinez, in the Nov. 18 Augusta Chronicle :
The Fair Tax proposal does not give massive tax breaks to the wealthy, nor does it unfairly tax the poor. These are myths spread by people who either don't understand the Fair Tax or else they are making money off taxpayers by helping them to prepare their complicated tax returns.
In Mr. Szerlip's letter, a family of four with an income of $100,000 that spends 70 percent on consumables presently pay 13 percent (or $13,000) of the total amount in taxes. Let's add Social Security and Medicare. They would pay 7.65 percent and their employer would pay 7.65 percent for a total of $15,300. Adding that to the $13,000, the government now has $28,300. Under the Fair Tax, the government would get 16 percent of $100,000, or $16,000.
Again, in Mr. Szerlip's letter, a family of four with an income of $1 million who spends $500,000 a year now pays 33 percent ($330,000) of their income in taxes. Adding Social Security from them and their employer on the first $102,000 will be $12,648. Adding Medicare from them and their employer on the $1 million will be $29,000, for total taxes of $371,648. Under the Fair Tax, the government would get 11.5 percent of $1 million, or $115,000 (more if they spend more than half of their income).
Under the Fair Tax embedded taxes would be removed. There is probably at least 22 percent embedded taxes on everything that we buy. When that is removed and a 23 percent Fair Tax added, everything should be a wee bit more. But remember, you'd have more of your money to spend. The rich guy will be purchasing more expensive items, like clothing, toys, houses, food, boats, etc., than the middle-income guy.
Companies don't pay taxes. They pass them on to their customers.
Clyde Hooks
Belvedere, S.C.
Comments
Mr Hooks, those of us that are informed understand what you're trying to say. The uninformed and misinformed are proud of their stance. You'll see proponents of the current system, or it's weaker twin (the flat tax) speak boldly against any change we can believe in. Politicians, especially, hate the Fair Tax since it will take power from them and their lobbyist friends and return it to the consumer/voter.
I had rather see a national sales tax, but since that won't happen, the fair tax is the way to go.
white trash, the fair tax is a consumption tax. Kind of like a sales tax without all of the secret b.s. involved.
The book is really cheap and the answer, once you've read the book, is really simple. If you haven't read the book, please, don't get all ignorant up in here.
The "Fairly Stupid Tax" is just the nail in the coffin the auto industry needs to insure it will be driven into bankruptcy. And, if you want the country to look like Cuba, support it. Lastly, if you must tax consumption and destroy it, go instead to a national sales tax on cigarettes so the proceeds can be used to expand Medicaid to cover the 50 million uninsured working poor, begining with their children(S-CHIP)
I don't guess hypertension read I4PUTT's 5:48 post.
14PUTT's problem, like all the others who support the "Fairly Stupid Tax"(FST) is his gross lack of understanding of human behavior. People do anything and everything to avoid a tax. And if you can not understand it is a waste of time to debate this issue. Regarding the auto industry, people will recycle used cars rather than buy new ones. So, if you want this place looking like Cuba with a bunch of 1952 Chevys on the streets,support the FST.
If I am on a fixed income of 900.00 I would have est 645 to live on for the month, fair?
So if hypertension is right, and people will do everything and everything to avoid paying tax, then how will he feel when you tax the "super rich" to the point that they feel that leaving is the only way to avoid the tax. Then the middle class becomes the new rich, who will be taxed into oblivion and they too will leave. THEN who will pay the welfare bills? GIVITSOMETHOUGHT. Where do you get that number? Do you not realize that you will only pay tax as you purchase things?
People who refuse to learn the facts surrounding the FairTax have no business criticizing it. To us who have taken the time to become educated in the Fair Tax, your stupidity just shows through your ignornant comments.
The Fair Tax would be the best thing to ever happen to this country.
hypertension, RetiredArmy, do ya'll support ignorance so strongly because in an uninformed society you won't stand out? Is this some of that herd instinct stuff ya'll are so proud of?
How did Obama vote on the bail out?
Just tell me what the states are going to do about taxes, especially when federal subsidies are reduced for things like roads and bridges? I guess then we will have toll roads which are not a tax but we would be taxed on top of the toll. Again folks Thailand is a consumption taxed place and it is a two class system Super rich and Super poor.
disssman read the book. All of those questions are addressed in such as manner as to make them easy to understand. Your guesses are way off. Your Thailand consumption tax comparison is also way off. Don't come across as Super ignorant when you can be Super informed with so little effort.
Sister A, Obama voted for the bailout.
Sister A, Obama is still for yet another bailout--so he hasn't changed anything as yet. As for hypertension, there are fed taxes on cigarettes--and on alcohol, utilities, as well as a number of other things we use daily. In case you aren't aware of it, anything that says federal tax means it is a national tax. No, I do not support the "Fair Tax" bill; it has too many flaws in it. I think a 10% tax, regardless of income, across the board with no deductibles is a better way to go. All one needs then is ONE sheet of paper to file an income tax return. As for the States, 3% across the board will give them plenty of money.
mable8, read the fair tax book, you'll be impressed. Don't let others interpret it for you. The simpleness of filing a "tax return" will astound you and the flaws are addressed in layman's terms. The short comings of the flat tax are also addressed. The big plus is the dissolution of the IRS.
As far as the auto industry is concerned, the unions have already "taxed" the American companies off the market. My 528BMW was 10 years old when I chose to get a 330I sport model. Got a hell of a lot more for it than I would have on an American made car. Can't say I see many 10 year old American cars in good shape these days. With the Fair Tax, EVERYONE pays-drug dealers, prostitutes, etc, who don't pay now.
That's right jack drug dealers prostitutes and politicions like John Barrow sitting on a bunch of old money in a trust fund that can't be taxed. And PT hit on the big plus the IRS becomes the bookeeper in the back of Walmart when the books are closed at the end of the day 23% goes to DC simple, also you will get a check for esssential items to bring you up to the poverty level. In othert words your needs will be met your wants are going to cost you!!
If a person on a fixed income of $900. i would believe all of the money would be spent each and every month
Why is your income fixed at $900? Have you no ambition? How do you figure you will have less money? Do you not realize that the Fair Tax would eliminate income tax and therefore your take home pay would go up?
My wife has a Aunt that lives on a total of 900$ per-month she just turned 80
What is the source of the $900 a month?
The fair tax is a fraud so its rich supporters can pay less in taxes than they do currently. One inconvenient fact supporters like Clyde fail to mention is that for their theory of prices falling 22%, wages will also have to fall 22%. Think you will be keeping all of your pay check under the fraud tax, or will prices stay where they are and just add that other inconvenient fact of 30% sales tax?
sjgraci....have you read the Fair Tax book?
Please explain why you think wages would have to fall 22%.
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