Make it more simple

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Permalink Reply by Dan Hunt on May 12, 2009 at 6:47pm

Shane

This has already been taken into consideration. Research has shown exempting taxes on necessities benefits wealthier people more than the poor since the former spends more on unprepared food, clothing, housing, and medical care than the latter. Also, exempting some products but not others unleashes lobbyists and special interests groups inside the beltway, ultimately distorting the economy. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. That is major problem with our current tax system. Consequently untaxing any item will not make the system simpler. The Fair Tax seeks to eliminate existing loopholes and much of lobbyists power by taxing at the point of sale and compensating people with the prebate. Doing so will give the poor a lower effective tax rate(after the prebate) than those with higher incomes. I suggest you research further at fairtax.org. This site will answer many of your questions.

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Permalink Reply by JD on May 12, 2009 at 7:20pm

Is that not the issue that the "prebate" addresses?
Others with more experience with this can correct me if I'm wrong here, but through Fairtax you would file a simple form proving all who are being claimed in the household are indeed citizens of the USA. Prebate would be deposited to every households account.
Only issue I have with Prebate is that I understand that is would be based on the size of the household (persons). The welfare system we have now rewards those who have more children to support, ie, they keep crankin'em out to get a bigger check. Would not a prebate check based on the same, perpetuate the same behavior?
I understand that FairTax was never designed to cure all the bad decisions we've made over the years or to cure all our social ills, but it still urks me.

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Permalink Reply by Nancy L. Gatchel on May 12, 2009 at 9:03pm

JD, you've missed the fact that no matter who or how much income they have, they are still consumers. Henceforth, the Fair Tax plan untaxes everybody with a Social Security number and they are untaxed up to the federal poverty level (fpl). This is fair to everybody, period. It is not a welfare program; it merely untaxes necessities for everybody.

As a person dependant upon Social Security, believe you me, I could use that prebate check right now. Gasoline just went up 40 cents in the past 2 wks. Items at the grocery store have also creeped up; my copays on my medications have doubled.

Then we have to look at the solvency of Soc. Sec., Medicare, and Medicaid. Without the Fair Tax, they will be unfunded in a very short period of time. For myself, I'm a tough old critter and I have faith that I would be just fine if these programs were eliminated. There are those that truly need them for a short period of time. At any rate, it isn't likely that these programs will be going away. However, the Fair Tax will contribute in a monumental way and maintain their solvency. The next step is for the government to clean these agencies up and quit wasting billions due to ineptness and inefficiency.

So remember, everybody is untaxed on basic necessities up to the fpl under the Fair Tax plan. Jobs return under the Fair Tax plan. We become the tax haven of the world, so trillions of currently "outsourced" US dollars come back home. Results in less need for social programs. See?
Can you imagine having at least 30% more in your take home pay and your monthly prebate check? You would stimulate the economy like everyone else.

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Permalink Reply by Tony on May 13, 2009 at 12:13pm

There is no filing for a rebate, you get it before you spend it.
Hence the name 'prebate'

None of it is tied to yearly income, it is tied to the amount of people in your household and the federal poverty level statistics.
You don't have to do anything.

I don't think you can make it any simpler than that without massive fraud by illegals getting the prebate and people lying about the amount in their households.

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