Marilyn Rickert's Blog – May 2010 Archive (3)

Question: is there a credit for individual ROTH IRA accounts?

No, there is not a credit for individual ROTH IRA accounts?



However, the FairTax legislation totally repeals the current income tax on Social Security benefits.



The bill also adjusts the Social Security benefits indexing formula, commonly known as the cost of living adjustment or COLA, so that benefits increase to the extent, if any, that the federal sales tax results in higher costs to seniors.…

Question: How does the "transition inventory credit work"?

The effective date of the FairTax is January 1 with the income tax repealed on Dec. 31^st (the day before). The “items for sale” on retailer’s shelves will still have the cost of embedded taxes in them. That is why the…