Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

The Poverty level

First, realize that the rebate is what makes the Fair Tax progressive. With the tax rate fixed, the progressiveness of the tax is directly proportional to the amount of the rebate which is directly proportional to the poverty level. Therefore, the higher the poverty level, the more progressive the tax; the lower the poverty level, the less progressive the tax.

Now consider this video I saw on youtube:
http://www.youtube.com/watch?v=zPkTItOXuN0

It basically describes how the BLS is using several methods to misrepresent GDP and the CPI. This worries me a lot because an understated CPI from the BLS will cause the HHS to understate the poverty level which, in turn, will reduce the Fair Tax rebate. I want nothing to stand in the way of getting the Fair Tax passed as soon as possible but, I also don't want anyone to ruin it afterwords. Beware the BLS.

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Permalink Reply by Sean Fagan on October 30, 2009 at 9:20pm

I found this video to be very interesting and informative and I thank you for posting it. However, I would like to suggest that the answer is not with changing the FairTax legislation but with the source of the problem itself. The Bureau of Labor Statistics (BLS) is employing some very questionable methods of measuring GDP/CPI numbers. The "fix" is with the BLS and not the FairTax.

Pass HR25 as written!

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Permalink Reply by Tony on October 31, 2009 at 9:37am

Don't cure the symptoms, cure the disease.

Fiddle with the bill too much (if at all) and we may not get wat we've worked so hard for.