Saturday, September 6, 2008
Roy Maynard: Early Returns
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Bill Pelland
Joined: 25 Feb 2008 07:34 am
Posts: 324
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Posted: 28 Apr 2008 12:36 pm
Post Subject: The 'UN' FAIR TAX Read Article
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Below is the text from section 101 of the Fair Tax Bill now before congress. You will notice that the rate of 23% is mentioned for the first year only. This is 23% of the gross sale on all goods and services.
This means if you purchased 100.00 worth of food including the 23% tax for the government you'd be getting 77.00 of food which would then be marked up 30% to reach the 100.00. The 23% figure is deceptive.
Now look at item 2 noting the rate for after 2007 would be the rate to cover old-age, survivors, and disability insurance rate (Social Security) and the hospital insurace rate (medicare) plus the general revenue rate of 14.91%. Now there is no telling how high this rate could be. With baby boomers retiring, the social security and medicare rates would rise each year. The rate of 14.91% really eqates to 17.52%. Assuming the rate for social security plus the general revenue rate is 30% then the true taxable rate would be equa to 42.857%.
The real problem comes for the senior citizen who has paid taxes all their lives and now pay no payroll tax and little income tax. Living on a fixed income, they would see their expenses rise by 30-42%. Which of you retired people or for those whose parents are retired could imagine paying 30-40% more for food, utilities, gasoline etc.
The fair tax is a bad deal for Americans and just another scheme by the republicans to shift all of the tax burden in this country to the poor and middle class. This idea is one of the biggest hoaxes around.
FROM HR25:
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) In General- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(b) Rate-
`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.
`(2) FOR YEARS AFTER 2007- For years after the calendar year 2007, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3)) of the gross payments for the taxable property or service.
`(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--
`(A) the general revenue rate (as defined in paragraph (4), and
`(B) the old-age, survivors and disability insurance rate, and
`(C) the hospital insurance rate.
`(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.
`(c) Coordination With Import Duties- The tax imposed by this section is in addition to any import duties imposed by chapter 4 of title 19, United States Code. The Secretary shall provide by regulation that, to the maximum extent practicable, the tax imposed by this section on imported taxable property and services is collected and administered in conjunction with any applicable import duties imposed by the United States.
Bill Pelland
Murchison Tx
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Bill Pelland
Murchison Tx
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