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  1. #1
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    FairTax Comparison Chart

    How does the FairTax stack up against the current Income Tax and the Flat Tax?

    http://www.fairtax.org/PDF/FairTax%2...on%20chart.pdf
    Vacuum Technology:
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  2. #2
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    I like it
    Saddle Up!

  3. #3
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    The FairTax is up for a vote before the Committee on Ways and Means. "This vote will represent the first time ever that a Congress body has voted on the FairTax," says Cindy Canevaro, the executive director of Americans For Fair Taxation.

    Georgia Congressman Rob Woodall, a sponsor of the FairTax Plan, discusses the process in a conference call:
    http://rec001.freeconferencecalling....77_1054583.mp3

    For more info on the FairTax, see http://www.fairtax.org/site/PageServer
    Vacuum Technology:
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  4. #4
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    Sadly it will never pass. It would mean the end of social engineering by our government through the tax code.

  5. #5
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    Its chances of passing have been improving over the last few years.
    The total number of sponsors and co-sponsors is now at 83.
    http://thomas.loc.gov/cgi-bin/bdquer...3:HR00025:@@@P
    http://thomas.loc.gov/cgi-bin/bdquer...13:s00122:@@@P
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  6. #6
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    I made a couple of spreadsheets and posted them in ARP, but I made a few errors and didn't catch them until it was too late. So I decided to post the corrected copies in this thread. If the double post is a problem, I would prefer to delete the ARP thread.

    This spreadsheet shows how the taxes stack up with the current income tax system and the FairTax system.

    If a good employee is aware and his employer is aware and honest, the employer should have no problem paying the full 43060 under the FairTax system. Subtracting 23%, this brings buying power up to 33156.

    There is also a prebate in the plan. The prebate serves as compensation for the taxes spent on income below the poverty line. According to the ASPE, the poverty line for a single person is 11770. 23% of this is 2707. Added to 33156, this brings total buying power to 35863. This is $10,000 higher than the 25692 of the current system.

    http://aspe.hhs.gov/poverty/15poverty.cfm
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    Last edited by Space Racer; 06-09-2015 at 05:55 PM.
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  7. #7
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    Here's an example of what would probably happen to the cost structure of a piece of furniture as the tax system changes from the current income tax system to the FairTax system. Over time, as costs and efficiencies continue to settle, wholesale prices would probably gravitate toward the original 50% level. As the cost of compliance fades away, costs at all levels would diminish to some degree.

    Name:  FairTax Spreadsheet2.jpg
Views: 95
Size:  137.5 KB
    Last edited by Space Racer; 06-09-2015 at 05:57 PM.
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  8. #8
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    They will never give up the power to tax is the power to destroy.

  9. #9
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    Can you say black market economy? It would ultimately mean more intrusion by the government imo. I bet then it really would be a crime to tear a sticker off of a mattrress. This may hurt the economy in the long run because there would be a real incentive not to buy anything.

    I think it would have some nice side effects. People may want to hold onto things longer to avoid the tax.

    When all taxes are considered we have close to a flat tax rate now and being revenue neutral it almost seems pointless.
    "War is cruelty,and you cannot refine it." Sherman to the leadership of Atlanta prior to burning the city.

    “They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.”
    Most misunderstood quote of all time!
    It was about the ability to collect taxes.

    Debunking the 1% slaveownership in 1860.
    http://www.civilwarcauses.org/stat.htm
    http://www.civil-war.net/pages/1860_census.html

  10. #10
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    Quote Originally Posted by pageyjim View Post
    Can you say black market economy? It would ultimately mean more intrusion by the government imo. I bet then it really would be a crime to tear a sticker off of a mattrress. This may hurt the economy in the long run because there would be a real incentive not to buy anything.

    I think it would have some nice side effects. People may want to hold onto things longer to avoid the tax.

    When all taxes are considered we have close to a flat tax rate now and being revenue neutral it almost seems pointless.
    Yes, the FairTax would provide an opportunity for people with tight budgets to save a few bucks by buying second-hand goods. At the same time, it would promote recycling on a large scale.

    At the same time, it would avoid putting people into higher tax brackets just because they want to work longer hours and put their kids through college. One of the big problems with the current system is that it punishes those who are the most honest and consciencious in their reporting, and those who need to increase their incomes.

    It also punishes small family businesses by making it too expensive for the parents to pass the business to their kids.

    It would mean less government intrusion. The IRS would go away.

    The only people filing tax returns would be retail busness owners. The infrastucture needed for collecting taxes is already in place in all the states that collect sales tax.

    People would be much more likey to buy things because they would have more cash to spend. They would be much less inclined to put purchases on their credit cards.

    "Pointless?" Is it pointless to add $10,000 to the buying power of a $40,000 salary simply by improving the efficiency of our tax system?

    The great advantage of a strictly retail sales tax is that it's the only tax that does not necessitate redundant payments. All other taxes fail because after they are paid, their cost is folded into the cost of goods and services. Thus they are paid twice, but only collected once.
    Last edited by Space Racer; 06-10-2015 at 02:25 AM.
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  11. #11
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    Quote Originally Posted by Space Racer View Post
    Yes, the FairTax would provide an opportunity for people with tight budgets to save a few bucks by buying second-hand goods. At the same time, it would promote recycling on a large scale.

    At the same time, it would avoid putting people into higher tax brackets just because they want to work longer hours and put their kids through college. One of the big problems with the current system is that it punishes those who are the most honest and consciencious in their reporting, and those who need to increase their incomes.

    It also punishes small family businesses by making it too expensive for the parents to pass the business to their kids.

    It would mean less government intrusion. The IRS would go away.

    The only people filing tax returns would be retail busness owners. The infrastucture needed for collecting taxes is already in place in all the states that collect sales tax.

    People would be much more likey to buy things because they would have more cash to spend. They would be much less inclined to put purchases on their credit cards.

    "Pointless?" Is it pointless to add $10,000 to the buying power of a $40,000 salary simply by improving the efficiency of our tax system?

    The great advantage of a strictly retail sales tax is that it's the only tax that does not necessitate redundant payments. All other taxes fail because after they are paid, their cost is folded into the cost of goods and services. Thus they are paid twice, but only collected once.
    I agree with much of what you say. A few disagreements would be that I envision more government intrusion. I can imagine taxed goods needing a stamp or something. That was what I meant about the mattress. This would be to counter the inevitable black market.

    I meant pointless in that it is revenue neutral supposedly and we share close to a flat tax rate now. You point out the winners, who would be the losers then? You can't be revenue neutral and have winners without losers.
    "War is cruelty,and you cannot refine it." Sherman to the leadership of Atlanta prior to burning the city.

    “They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.”
    Most misunderstood quote of all time!
    It was about the ability to collect taxes.

    Debunking the 1% slaveownership in 1860.
    http://www.civilwarcauses.org/stat.htm
    http://www.civil-war.net/pages/1860_census.html

  12. #12
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    Quote Originally Posted by pageyjim View Post
    I agree with much of what you say. A few disagreements would be that I envision more government intrusion. I can imagine taxed goods needing a stamp or something. That was what I meant about the mattress. This would be to counter the inevitable black market.

    I meant pointless in that it is revenue neutral supposedly and we share close to a flat tax rate now. You point out the winners, who would be the losers then? You can't be revenue neutral and have winners without losers.
    All goods would be taxed; no exceptions. This minimizes compliance headaches and costs. No extra software or employees would be required on site to make sure the right items were being taxed. This is a factor in determining the amount of the prebate.

    Everyone who buys goods and services now already contributes 22% of their expenses in payment of the funds that enable businesses to pay their income taxes and their employees' income taxes. The FairTax simply converts this embedded income tax into an embedded sales tax of 23% (yes, that's one more percentage point) and then pays everyone back thousands of dollars per year, according to family size and the state they live in.

    The losers now are the people who pay twice for the same tax, and the people who can't find work because the economy is in such bad shape. After enactment of the FairTax, everyone is a winner because the system is so much less wasteful. It's a total win/win bargain for US citizens.

    The only losers are the politicians whose political survival hangs on their ability to leverage the existing system to the advantage of their special interests, and the tax accountants and tax lawyers who would find their agendas lacking.

    Look at the first spreadsheet at cells E26 and E28. This employee is paying 17,000 in taxes, but the government only receives 10,000. The other 7,000 is in the form of redundant payments. It's completely wasted.

    Now look at H26 and H28. The redundant payment has disappeared. The government receives the entire amount paid.

    And no one has to check your income tax paperwork every April, because you don't need to submit any. You get to keep your whole paycheck.
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  13. #13
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    In post #6, I said:

    Quote Originally Posted by Space Racer View Post
    If a good employee is aware and his employer is aware and honest, the employer should have no problem paying the full 43060 under the FairTax system. Subtracting 23%, this brings buying power up to 33156.

    There is also a prebate in the plan. The prebate serves as compensation for the taxes spent on income below the poverty line. According to the ASPE, the poverty line for a single person is 11770. 23% of this is 2707. Added to 33156, this brings total buying power to 35863. This is $10,000 higher than the 25692 of the current system.

    http://aspe.hhs.gov/poverty/15poverty.cfm
    This is what I meant:

    Name:  FairTax Spreadsheet3.jpg
Views: 57
Size:  82.6 KB
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

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