Replace All Federal Taxes on Income with the Fair Tax Act , HR 25
Prebate
Every thing about the FAIR TAX is plain and simple except the Prebate. I have read every thing I can about it, and I still so not see how this is going to be implemented and administered. Any time I ask about it, I am told to read the web site. As I read it, Every tax payer will receive a percentage of tax money back from the "TAXMAN" based on the amount collected. (The web site actually does not say who will send the prebate) This would seem to me to be an excellent means to boost the economy since every taxpayer would have spendable cash every month from his "prebate". This means the poor get back most of what they spend if not all or even more than what they spend on taxes, depending upon how much they spend. My question, Who is the "taxman" Meaning , Whos is going to send out all these chcks? We are eliminating the IRS, the states will be collecting the tax, same as they do now for the state and county sales tax. Who will be "Mailing"? these checks and who will be maintaining the database for all the American taxpayers. Where will that Data base be kept. (how will it be backed up) Any time money is sent to the American people from the government, there is an opportunity for corruption. Who will be the oversight committee? Then who will keep them honest. It seems to me the Prebate is the only part of Fairtax that has questionable value, at best. It seems to be an attempt to make this Fairtax politically correct so that the nay- sayers (and most Democrate politicians) who state it is not fair for the poor are quieted. Unless some one can give some good answers that make sense, it looks to me as though the prebate is the weak link
While I am speaking about corruption, No politician is going to vote for the Fairtax because it eliminates their ability to give away tax credits, exemptions, or (putting it bluntly) Bribes to their cronies or supporters. No tax Lawyer is going to want to have Fair tax implemented because they do not want to loose the income they make from the convoluted current Tax system. No Tax accountant (is there any other kind other than so called cost accountants) will want to vote for Fairtax, same reason as tax lawyers. I include all the tax preparers in wiht the accountants (Ie: H&R Block and the like) None of the ILLEGAL immigrants are going to want Fairtax because currently they don't pay Any INCOME tax. There are likely many more in the US who would loose a fair amount of (currently corrupt ?) income from not keeping the current system. Those are some pretty powerful lobbyists. Much stronger now than the popular vote. These are all reasons to Keep fighting for the FairTax, and realize most supporting politicians are just saying, for now, what you want to hear (since they don't really have to make a vote that is going to make a difference yet) and Realize that it is going to take a revolution to make it a reality.
Lastly, Can any one tell me why Steve Forbes keeps pushing his Flat tax when there is a better solution (Fairtax) and a group willing to support the Fairtax?
While I am speaking about corruption, No politician is going to vote for the Fairtax because it eliminates their ability to give away tax credits, exemptions, or (putting it bluntly) Bribes to their cronies or supporters. No tax Lawyer is going to want to have Fair tax implemented because they do not want to loose the income they make from the convoluted current Tax system. No Tax accountant (is there any other kind other than so called cost accountants) will want to vote for Fairtax, same reason as tax lawyers. I include all the tax preparers in wiht the accountants (Ie: H&R Block and the like) None of the ILLEGAL immigrants are going to want Fairtax because currently they don't pay Any INCOME tax. There are likely many more in the US who would loose a fair amount of (currently corrupt ?) income from not keeping the current system. Those are some pretty powerful lobbyists. Much stronger now than the popular vote. These are all reasons to Keep fighting for the FairTax, and realize most supporting politicians are just saying, for now, what you want to hear (since they don't really have to make a vote that is going to make a difference yet) and Realize that it is going to take a revolution to make it a reality.
Lastly, Can any one tell me why Steve Forbes keeps pushing his Flat tax when there is a better solution (Fairtax) and a group willing to support the Fairtax?
Replies to This Discussion
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Permalink Reply by Carol Adams McLean on
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All your questions concerning the prebate are answered in this article I found at FairTax.org
www.fairtax.org/PDF/FairTaxPrebateExplained2007.pdf
Last I heard, only citizens had the right to vote in this country. There already is fraud, and after FairTax is passed, that's my next project.
You're right about no politician wanting FairTax because it would cut their power. Most of them didn't agree with women or blacks voting either, but public pressure caused change. This is exactly why this must be a grass roots effort... as the economy sinks into the black hole our politicians are busy creating, we'll have the opportunity to demand change that helps everyone. Unfortunately, we'll probably have to go through some lean years for the American people to figure out there is a solution. Most still don't know what the FairTax is.
I am grateful there are rich people, but I can't help but be suspect when a rich person prefers a flat tax to the fairtax. What we have now was once a flat tax, but money in Washington bought tax deductions for special interest groups. The flat tax maintains the payroll tax which is terribly regressive and a good way to keep competition to the minimum. Smaller companies have a harder time expanding under this system. There are reasons to support the flat tax, but as far as I can see, it serves the current power structure, not the people. Besides, the wealthy spend more and will pay a lot more in taxes under the FairTax. There are good reasons for Steve Forbes to push for the Flat Tax, but none that benefit you, me or this country. -
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Permalink Reply by Laura McCue on -
Davd, These answers are found under "about the fairtax and the "the basics" Look on the far right of the screen in the blue headlined box. Here is what you need to know as there are some misconceptions in your paragraph above.
Under the FairTax, all Americans consume what they see as their necessities of life free of tax.
While permitting no exemptions, the FairTax (HR 25) provides a monthly universal prebate to ensure
that each family unit can consume tax free at or beyond the poverty level, with the overall effect of
making the FairTax progressive in application.
All qualified families are entitled to receive the monthly prebate. The term “qualified family” means
one or more family members sharing a common residence. A qualified family consists of all family
members sharing the common residence. Family members include an individual and his or her
spouse, children and grandchildren, parents, and grandparents. Children/students living away from
home are considered family members if they are registered as a student for at least five months out of
the year and receive at least 50 percent of their support from the family.
The monthly prebate check is calculated by multiplying the annual poverty level spending published
each year by the Department of Health and Human Services times the FairTax rate and dividing by
twelve. Poverty level spending represents what it costs families of varying household size and
composition to buy their necessities.
The number of households for 2007 is estimated to be 113 million. Assuming 100 percent
participation, the cost of the prebate is estimated to be $489 billion for 2007 (assuming that all
legally resident households participate). This amount is about half of the amount of tax expenditures
(standard deductions, personal exemptions, Earned Income Tax Credit, mortgage interest and
charitable deductions, and various other tax preferences) doled out under the current federal income
tax system that are repealed when the FairTax is enacted.
The Social Security Administration (SSA) will send out the monthly prebate on or before the first day
of every month. If a family wishes to designate more than one person to receive the prebate, then the prebate payment will be divided evenly among those persons designated. Example: Two single people sharing the same residence are able to each get a prebate check. SSA will provide the prebate in the form
of a paper check via U.S. Mail, an electronic funds transfer to a bank account, or a “smart card” that
can be used much like a bank debit card. (This method is already in use to provide other benefits
from the federal government.) The National Taxpayers Union estimated that the cost of mailing
monthly prebate checks via the U.S. Postal Service would be approximately $225 million. To the
extent SSA uses electronic funds transfer and “smart card” technology, this amount would be reduced
accordingly. -
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Permalink Reply by David Shipp on
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Carol, not sure how voting rights came up, but no one denies the right to vote, not many do vote and those who do are mostly miss informed by the media or not informed at all and like the sweater so, so and so wore so vote somehow based on that. Back to topic, Between carol and Laura, I have seen that the administrator of the Prebate will be the SS administration. I don't believe for a second that all those people who currently work for the IRS will then go to work for the SSA and it will likewise become the new corrupt bureaucracy IRS is now. I see absolutely no need or benifit for a prebate. I also don't see any misconceptions in what I wrote. The wording is a little tricky, but Every one pays tax( inspite of the first line stateing other wise ( "Under the FairTax, all Americans consume what they see as their necessities of life free of tax." ) then up to the poverty level that tax it is given back. once again this leaves a loop hole and a variable. Second page " published
each year by the Department of Health and Human Services" Do they count the same way that unemployment is counted? (Did you know that shortly after your unemployment checks run out, you are no longer counted. If you never apply, you are not counted at all. )
With out the Prebate, there is hardly a need for administration. There is no expense for mailing and there might even be more money for welfare recipients. AND there is almost, no way to fudge numbers. Prebate just complicates a GREAT simple idea and makes it more palatable for those who want to be politically correct. Every one but government knows KISS. (Keep it......) They will make it complicated later any way. The federal government can't even determine who got Katrina Visa cards and how many went to non residents of New Orleans when they passed them out. If the government is giving (back) away money, there will be corruption. eliminate that aspect and it is an ideal tax. -
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I agree with you... but this bill needs to pass and by providing a prebate, it is the only progressive system out there. The one thing the govt seems to do well is to write checks.. with the help of computers they're already able to keep track of everyone's work record and what they've paid into social security. Everyone over 64 1/2 counts on their SS check every month.
If govt workers want to save their jobs, than FairTax isn't for them... even if it is cutting off their own nose to spite their face. The way things are going, govt will be the only employer before too long.
The FairTax is not written in stone... politicians are apt to monkey with it if we aren't vigilant.... another reason for the prebate. There is no need to make exceptions when no one living under the poverty level will pay tax. No special exception for families with kids or green hair or whatever the special interest group. -
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Nice bike! Much prettier than mine. Mine is a 1989 Honda Shadow 1100cc. I once got pulled over by a county officer? who said " how fast were you going? I was going 120 and you were pulling away. I could have been killed chasing you." (Dumbass, you didn't have to chase me)
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Come ride with us to Cornelius next Saturday! - but at a much slower pace!
www.grassrootsfreedomride.com for details -
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