[saden1]

Originally Posted by Slingin Sammy 33

Up to employers. However keep in mind that these taxes are already embedded in the cost of all the goods/services we use today, costs of goods/services before the FairTax Tax is added will go down significantly.

SS & Medicare stay as is. Social Security and Medicare programs are spending programs. FairTax is focused on revenues (tax collection) only. FairTax would be implemented to be revenue neutral, spending programs and fixing SS & Medicare are separate issues.

Also, for each Head of Household or each individual with SS card, a prebate check will be sent monthly to cover the cost of the embedded Federal tax on basic necessities using current HHS poverty level calculations.

The FairTax is designed to be revenue neutral. I would argue that with no corporate, capital gains, death, etc. taxes the climate for business expansion will be excellent and we will see increased revenues to the Fed. Worst case, the percentage of the FairTax would have to be increased to cover debt reduction. A balanced budget ammendment and fiscal discipline will allow us to put our financial house in order without increases to the FairTax % IMO.

Another revenue stream that FairTax catches is the underground economy. Folks getting paid "under the table", money from illegal activities, people paid in cash/tips that aren't claimed as income. Since the FairTax is embedded in products sold, when anyone buys a prodcut/service pays the tax, no matter where/how they made their money.

see #2

Wasn't "cowardly", just had to contribute to GDP this morning and help cover the costs of Obama's spending programs and Solyndra loans.

I did make an error in a previous post in the thread. The FairTax wouldn't be added on the price of a product at the cash register as an additional cost (exclusive), like a state sales tax. The FairTax would already be an embedded cost in the price of a good/service (inclusive).

Are we talking about the 999 plan or the FairTax? Regardless of which plan we are talking about I am under the impression that they would both eliminate the payroll tax which means there will be no deposits Medicare, Medicaid, and Social Security bank accounts. Ore maybe we're talking about the SS33 hybrid plan?

If one thing is fairly certain it is that if given the option of not matching employee payroll contribution most employees would probably choose to count the money and put it in their back pockets much like the airline companies did with the airline surcharge. I am not interested in doing going to do Arthur Anderson accounting here so unless you are fairly certain individuals are going to get that money in their pockets for sure you shouldn't count that money as income.

The idea of the cost of goods going down is also far fetched. It is more likely that companies would invest their savings in expanding their business or rewarding its investors. That's what I would do and if I were to lower the prices of my goods it wouldn't be by much and for long. Now if if business is booming and my demand grows I can see my price being elastic but where is this new consumption going to come from? Maybe China and India.

Another revenue stream that FairTax catches is the underground economy. Folks getting paid "under the table", money from illegal activities, people paid in cash/tips that aren't claimed as income. Since the FairTax is embedded in products sold, when anyone buys a prodcut/service pays the tax, no matter where/how they made their money.

To think the FairTax can capture revenue from under the table payments is ludicrous. This is by far the stupidest selling point I have ever heard regarding the FairTax. How are you going to count this money if it's unclaimed?

The FairTax is designed to be revenue neutral. I would argue that with no corporate, capital gains, death, etc. taxes the climate for business expansion will be excellent and we will see increased revenues to the Fed. Worst case, the percentage of the FairTax would have to be increased to cover debt reduction. A balanced budget ammendment and fiscal discipline will allow us to put our financial house in order without increases to the FairTax % IMO.

Designed to be revenue neutral? At what percentage and what date is this revenue nutrality to be had? What do we do in times of war? Increase that tax rate? The details is all in the math. I am not comfortable signing on unless we have credible figures in place.